Good Paper Title Essay Example
In order to ensure long-term growth, companies need to not only diversify, but to innovate and invent products that engage the user and change their consumption habits. Classic examples include hygiene products, such as deodorant, which were not useful until chemical companies marketed body odor as a problem. Good market position not only creates a product, it defines a problem and offers the solution. When a company is the first to offer a solution, their product often becomes dominant in the market, and the brand name synonymous with the solution. Xerox and Kleenex are examples of this situation.
Improved Market Positions from Dramatically Shifted Customer Choice Patterns
3M demonstrates a classic example of a company innovation; the company changed consumer patterns with sticky tape "post-it" notes. Before the creation of post-it notes, 3M was an adhesive company but the company turned the sticky notes into something that consumers need and use every day (Prahalad and Hamel, 1990).
NEC was a company that developed domestic semi-conductors. It shifted its production to mainframe computers, and then began making direct-to-consumer products, such as, cell phones; fax machines, and laptops (Prahalad and Hamel, 1990). By latching on to lifestyle technology, NEC was able to steer consumer choice from large to small electronics.
Sony’s Core Competence
One of Sony’s core competencies is the ability to make technology smaller, but this did not create what makes Son a successful company (Prahalad and Hamel, 1990). Sony's used this develop other core competencies, such as technological variety and sophistication of existing technology. Sony products went from audio recording to video recording and then the company began to focus on optical encoding, digital storage, and computing, allowing them to develop groundbreaking products that changed the public’s consumption habits. These products included the compact disc, flash drives, the Play Station, and mobile communications.
C. K. Prahalad, Gary Hamel (1990). The core competence of the corporation. Harvard Business Review. 79-91, Database: Business Source Premier.