Product innovation is the process by which a company develops or improves their product for the consumers. These new products improve on the functionality of same products on the market. When a company do product innovation, the company’s goal is usually to give themselves an advantage over their competitors.
In today’s competitive world, simply making quality products to maintain your company’s share in the market is not enough. Well, there can be an exemption to that: you can’t do product innovation to a product that cannot be improved substantially. Firms need innovative products to survive today’s competition. Consumers avoid products that are seen as out of date and not improving your products can see you lose market share.
Taking advantage to your competition is normally not easy to achieve. One way of gaining advantage over your competitors is marketing cheaper products. Companies need to reduce their production costs while increasing their production in order to be able to market cheaper products than their competitors. The other way is coming up with ideas and manpower that can make innovative products that will be better than those of their competitors.
If you want to make it possible for your product to stand out from your competitors, then you should consider innovation. However, this is not always possible what with the increased production and marketing costs and hence the need for innovative products.
For more on production innovation, check this out: https://www.entrepreneur.com/article/270222