Positioning a business for future growth can come in many forms. In this article we will look at several ways to develop or acquire future growth opportunities.
Research & development
R&D projects to develop future technology that may be commercialized. These projects can be basic research, where technologies are developed for the sake of development, or applied research where technologies are developed to solve a specific problem.
Acquire a patent
Acquire a patent that may be commercialized in the future.
License a patent
License the right to use a patent.
Initially enter the market with first generation product to gain knowledge. Improve competitive position with successive generations of the product as new knowledge is gained.
Modify existing products to generate new revenue. Types of incremental innovation:
- Update/upgrade products.
- Add new features.
- Create derivative products from existing products.
Acquire a competitor
Buy a competitor to:
- Consolidate customers (gain market share).
- Gain a technology or competency.
Acquire a tangential company
Buy a company that is not a direct competitor, but is related to your industry.