Iteration strategies for successful positioning of innovative products into new markets

Abstract

We have studied the experience and practice of entrepreneurs and their respective firms in Portugal to position innovative products into the United States (US) and other markets. Employing a case study approach, we examined the manner dialogue with market stakeholders impacted value propositions in the form of formal pitch documents and oral presentations. These studies revealed an initial tendency of firms to pitch their innovation through generalized claims to non-specific audiences in the marketplace. Following interaction with stakeholders in the new market, the value propositions were iterated to become highly specific and sometimes quantitative. Specifically, value propositions of successful entrepreneurs were changed along four dimensions: (1) specifying the business argument to particular customers; (2) refocusing the technology use case; (3) adapting technology or product design; and (4) providing financial incentive for partners, or a combination of these. We further saw an apparent requirement for innovators to participate in this iteration process if they wish to successfully reach a new market. Ultimately, the presentation of new, innovative products does not resemble selling a finished product as supposed in a value-as-exchange offering, but requires active interplay and co-creation with business stakeholders in the new market to transform the innovation into a fitted value-in-use solution.