There’s an advert for a car, a brand…let’s call it Toyota. Obvious, isn’t it hehe? Toyota has long applied to the Innovate or Die principle, which they build a car with minimum security, comfort, and let it sell on the market. If it does sell, then they gradually decrease the quality of the interior and other area, and sell it with higher price.
It works, so why fix a business model that has been working for years? Well, there’s one thing. Competitors. The only way competitors to disturb the market of Toyota is by making a better car. Of course they have to sell it a bit higher than Toyota, but it’s a great deal for car enthusiasts. When the market of Toyota disrupted and reduced, it’s time for Toyota to “Innovate” by putting the stuff they didn’t want to put in the first place, such as air bags, side beam, start push button, or even immobilizer. And of course, with huge brand image such as Toyota, they would sell with price that even higher than their competitor that has been disrupting their market slice.
I guess we can to copy this to the internet marketing principle, by using Innovate or Die strategy which applied to Toyota to how we respond to our competitors. When we are going to disrupt a competitor, we can make even better product, but with higher price so it will perceived to be better. Or lower to gain more sales in the end.
When we have become bigger brand, we can reduce the quality of the product and sell it even higher. Our customers might not notice immediate and responded to that, but in a micro niche, I think this is feasible where people don’t have other alternative which works and get great support.
Sometimes, in the end, the quality of the product can be diminished by improving customer support and longtime relationship with the customers.
But again, profit might rise or we will soon die because of the nature of the competition nowadays is fiercer because the barrier of entry is very low to be on the internet. By using facebook, twitter, youtube and even a blog, any people can put their product presence on the net just by a snap of a finger.