Success Depends on Innovation
I recently had the good fortune to spend a few hours with a diverse group of consumer electronic accessories companies discussing the opportunities and threats that our businesses face. What I found interesting is, regardless of whether we sell cables, wall mounts or recordable media, our challenges are the same. By dealing with those challenges with the right strategies, however, we have the potential to change our businesses in dramatic ways. Here’s what we came up with.
We all agreed that our businesses still generated decent margins and growth opportunities. This growth is driven by our willingness to innovate, either through the technology we create or through development of products that enhance the technology on which those products are based. But we are faced with major obstacles that impact our current willingness to innovate.
The most significant challenge is perhaps the lack of integrity in the business world. We talked about how suppliers, retailers and competitors take our ideas and products and knock them off before we can even bring them to market. Some felt this has been facilitated by the growing trend among retailers to direct source from factories. As a result, we are more tentative in discussing these ideas with each other, which makes it harder to invest in the development of new products and ideas.