The term value innovation is used to describe:
A) the way a company decides to group customers based on important differences in their needs to gain a competitive advantage.
B) a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings.
C) what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.
D) what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer.
E) what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments.

Question

Quizplus · Accepted Answer

Value innovation refers to the creation of new market space by exploring uncharted territories in order to make competition irrelevant, while simultaneously creating new consumer value. This is achieved when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. The result is a leap in value for both the company and its customers.

The Term Value Innovation Is Used to Describe