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Capturing market value in technological innovations: a case from the optical fibre cables industry
Author(s) -
Malik Khaleel
Publication year - 2001
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.543
Subject(s) - multinational corporation , industrial organization , business , product (mathematics) , value (mathematics) , corporation , competitive advantage , new product development , service (business) , marketing , computer science , finance , geometry , mathematics , machine learning
Innovations in Research and Development (R&D), product design or manufacturing are not sufficient conditions to guarantee the survival of firms. Understanding and capturing customer needs together with the sensitive use of operational tactics can provide firms with the added value that ultimately sustains competitive advantage. A practical in‐depth innovation case study is discussed which provides lessons from the optical fibre cables industry. It demonstrates how a leading UK‐based multinational corporation (MNC) recognized that it had to change from being solely product driven to become both a systems integrator and a service provider, offering innovative technological solutions for niche markets. The crucial change in strategy occurred when the company rescued a failing technology aimed at mass markets and realized market value by offering a modified version of the original technology for niche markets.