Innovation is at the heart of business today. From Uniqlo to Jimmy Fairly, companies are innovating in terms of their products, business models and services in order to attract and satisfy increasingly demanding customers navigating a commercial ecosystem that is constantly flooded with new offerings. As a result, brands are forced to innovate in terms of their services, to attract more customers for their traditional ranges but also to develop other services and businesses to secure the reputation of their brand and company.
There are two ways of developing services, one of which is through acquisitions. This is the strategy chosen by the company Alphabet (Google). Since its creation it has taken advantage of its position as leader and its substantial resources to purchase companies and start-ups. The aim is to improve both its search engine and the synergies between different sources and thereby improve the overall navigation experience. The list of acquisitions can be consulted here.
On the other hand, some companies prefer to develop their services directly in order to establish their brand as a benchmark for a specific segment. This is the case for Amazon and Alibaba, which push innovation to the limit by creating R&D centres to work on aspects such as the supply chain and the delivery experience. A good example is Amazon’s latest innovation of delivering packages directly into customers’ homes.
Whatever the strategy chosen by the company, in addition to establishing the company as a benchmark for its segment and thereby boosting incremental turnover, the common denominator of developing services is the consumer centric approach. Indeed, “new” models of innovation and ways of thinking are appearing, such as business design for example. This approach aims to develop services that are pertinent both for the consumers (meeting needs based on actual usage) and for the brands (developing profitable services that generate new sources of income). The development of services of this kind allows brands to establish themselves as benchmarks in their segment for several business targets, without having to shout the loudest, simply by offering pertinent services that enable consumers to appreciate their experience and therefore to spread the word amongst their entourage.
By Sidney Debaque, Strategic Planner, Agence Cosmic