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Innovation – can it be too much to handle? April 11, 2007

Posted by silviamocanu07 in Business-Society Issues.

The article that I found on Business Week, called “How to Live Up to the Innovation Hype”( http://www.businessweek.com/innovate/content/apr2007/id20070410_471842.htm?chan=innovation_innovation+%2B+design_top+stories), mainly discusses the case of a company called Iridium, which had a very public bankruptcy in 2000. Iridium produces portable phones with service provided by satellite networks, and the main reason behind its past failure as a public enterprise, was the fact the company “launched innovative products and services but didn’t live up to the initial hype” (page 1).  In addition, one of the other main problems associated with “Next Big Thing”-companies like Iridium is the difficulty that they experience when identifying and reaching their target market, because their techonologies are “so fresh and so unprecedented”(page 2).

However, companies like Iridium have managed to re-establish themselves and to “refine their technologies, remake their business models, and reach out to new audiences” (page 1). It seems as though new and creative marketing solutions, as well as sound technology improvements have truly made a difference in the success of such high-tech enterprises. Iridium, for example, was bought over by private investors in 2001 and now it is operating profitably, at a smaller scale than in the past.

When thinking about this niche market comprised of high-tech companies, do you really think that marketing is one of the pivotal factors, such as the article suggests? I believe that the way that a product is marketed constitutes a decisive factor in whether it will be successful or not. The correct market segmentations must be made and the product must be made known to the target group, otherwise it will fail. This is even more so the case with high-tech products that must be first positioned in the market and made known to the target market segment.  What do you think?



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