Q1: Types of innovation, pros and cons

Product innovation

involves creating new or significantly improved products that meet customer needs in unique ways

Advantage of product innovation

• the ability to differentiate the company’s offerings

• attract loyal customer base by addressing diverse market needs

Disadvantage of product innovation

• requires continous research and development to stay ahead of consumer trends

• maintain product relevance

=> resource intensive + quick obsolescence

Process innovation

refers to changes in how a company creates and delivers products or services aiming to enhance efficiency and effectiveness

Advantage of process innovation

significantly improved operational efficiency and productivity

=> maintain high standards in dairy operation

Disadvantage of process innovation

• the adoption of such technologies can involve substantial initial investment

• the challenges of intergrating new systems into existing workflows => require significant time and effort

Position innovation

involves targeting a different market segment or changing how a product is perceived to attract new customer

Advantage of position innovation

its potential to capture new market segments and enhance brand loyalty by differentiating the product or service in the minds of consumers

Disadvantage of position innovation

• requires a deep understanding of market dynamics and consumer behavior

• significant investment in branding and marketing to effectively communicate the new positioning

Paradigm innovation

involves altering the fundamental business model or market approach often leading to significant industry disruption

advantage of paradigm innovation

• opening new market opportunities

• creating significant competitive advantages

disadvantage of paradigm innovation

• the need for substantial changes in busines operations

• overcoming resistance from existing distribution channels