A parte II termina com esta afirmação:
"companies have recognized that launching new products is by far their best option to escape these pressures and re-establish their pricing power."Só que há um problema:
"Companies know that innovation is the one true solution to escaping oppressive market conditions. Many companies back this up with real commitments to R&D in order to generate ideas which will change the basis of competition.E atenção:
Yes, companies had the right idea when they decided to invest in innovation and try to change the basis of competition in their markets. They could hardly pick a better means to escape market conditions and re-establish their pricing power than innovation.
Innovation begets innovation. But it is a cycle fueled by profits, not just by great ideas. If enough products at a company fail to meet their profit targets, the positive cycle — innovation begets innovation — gets disrupted or stops entirely. The company lacks the resources to develop its freshest big ideas and bring them to market. These failures can have crippling consequences for corporate profits. Short-term financial performance suffers, and more importantly, a company can lose its long-term ability to fund more innovation to remain competitive."
"The irony: Flops make oppressive market conditions even worse In the same way that having a successful new product triggers a positive spiral, having a flop can trigger a negative one, depending on how a company responds. When a new product starts to fall short of expectations, a natural reaction is to cut prices to stimulate demand, move existing units, and salvage whatever one can. The problem is that these tactics can intensify the very same price pressures that the new product was supposed to free the company from."Portanto, uma empresa tem de ter sucesso nas suas apostas e, tem de ter possibilidade de não ver esse dinheiro impostado pelo monstro normando.
Os autores propõem que a inovação e o marketing trabalhem em paralelo e não como actividades em série.