Extending technology for market disruption: a case study
| DOI | https://doi.org/10.1108/JPBM-10-2012-0200 |
| Date | 19 July 2013 |
| Pages | 309-313 |
| Published date | 19 July 2013 |
| Author | Elaine M. Notarantonio,Charles J. Quigley Jr |
| Subject Matter | Marketing,Product management,Brand management/equity |
Case study
Extending technology for market disruption:
a case study
Elaine M. Notarantonio and Charles J. Quigley Jr
Bryant University, Smithfield, Rhode Island, USA
Abstract
Purpose – In an environment that is hyper-dynamic and faced with economic turmoil, it is crucial that organizations identify innovative competitive
strategy.Using principles from Clayton Christensen’s
The Innovator’sDilemma
, KVH Industries embarked upon a strategic market planning mission. This
paper aims to describe how this company successfully turned a competitive disadvantage to an advantage by examining the market mindset and
utilizing disruptive innovation to introduce a new product.
Design/methodology/approach – This paper utilizes a case study to demonstrate successful application of disruptive innovation.
Findings – A new evolutionary product was indicated in the research.
Research limitations/implications – There may be some lack of generalizability due to this being a case study for a specific brand in a specific
industry.
Practical implications – It is unclear whether a revolutionary, rather than an evolutionary, product introduction would be more successful.
Practitioners should recognize the competitive opportunities afforded through “disruptive innovation” strategies.
Originality/value – This paper is of value to practitioners to see the success of one company’s dismissal of a revolutionary product introduction in
favor of a product launch that represents a “just good enough” alternative to competitors’ products. It also demonstrates that there are risks associated
with using a brand extension approach rather than individual branding.
Keywords Disruption, Innovation, Marketing strategy, Competitive, Brand extensions, Product innovation
Paper type Case study
During an off-site strategy retreat, senior management of
KVH engaged in discussions around the popular business
strategy book The Innovators Solution. The company
considered the introduction of a smaller, lower priced
product to their current TracVision M3 product. In doing
so, management sought to “disrupt” the market and attract
customers who would not purchase the higher-end products
of KVH or its competitors. It would also seek to “capture” the
low-end customers of competitors. Research was conducted
which suggested a marketing plan that was not followed
initially. A subsequent adjustment to the plan led to product
success and forced a main competitor to defend market share.
The VP of marketing discusses the strategy and what might
have been done differently.
Background
Each year KVH Industries’ senior management holds an off-
site strategy retreat where they engage in discussions for a 2-5
planning horizon. The goal of these sessions is to identify
several strategic initiatives to improve the company’s position
in the market and to lay the foundation for continued long
term growth. Discussions often revolve around a popular
business strategy book which participants read prior to the
meeting. In 2006, The Innovators Solution was chosen. This
book discusses the concept of disruptive product development
strategies.
According to, Jim Dodez, Vice-President of Marketing and
Strategic Planning for KVH Industries, the company
considered the introduction of a smaller, lower priced product
to their current TracVision M3 product and devoted a series of
strategy sessions to its discussion. The goal of this “disruptive”
approach would be to attract customers who would not
purchase the higher-end products of KVH or its competitors. It
would also seek to “capture” the low-end customers of
competitors. The hope was to broaden the entry level market
for maritime satellite television by making the product smaller
and lowering the price point thereby attracting owners of
smaller boats than those who purchased KVH’s existing
products. The company also hoped that eventually, these
buyers purchased larger boats, they may move up to the more
expensive products in the company’s TracVision product line.
Company overview
KVH Industries is a publicly traded company started in 1982
in Rhode Island. The company is headquartered in
Middletown, Rhode Island and has manufacturing facilities
in Illinois, and sales offices in Denmark, Norway and
Singapore. All facilities are ISO 9001 certified. The
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
22/4 (2013) 309–313
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-10-2012-0200]
309
To continue reading
Request your trial