Non-related Exploration Number of consumers who wants innovation (n) is number of consumer This case presents the situation that an who are affordable for new product (b) exploring organization gets barely merit among number of consumers who know from exploitation, since their new about new product (p) and number of business or new product is not related consumer who like new product (e) with their existing business category. Sometimes companies decide to start new business which is not related with their previous specialization to expand business area, they would like to operate Consumers’ layer on new product can be at. In 1995 Starbucks and Capitol expand as following (in case it doesn’t Records produced some CDs which get advertisement) were played in Starbucks stores and could be bought by customers just in cafes in case they like them (Schultz Figure Consumers’ layer expansion model 1999, p. 212). Figure The non-related exploration In fact, there are not many consumers who want to buy new product (or new service) right after they are introduced. 2. General consumers choose to wait until the product settle and be stabilized. This certifies the fact that early adopters are important when organization wants to introduce product or service with new If you know yourself and know your even though you fight 100 times you may win 100 times. concept. -Chinese proverb- When Starbucks opened their cafe for When organization wants to introduce the first, their new coffee taste and new product, they do research if emotional marketing strategy were kind customers are ready to accept this of shock for American citizen. innovation. For example, when Food Especially those group of consumers Company wants to introduce new types who were looking for new coffee taste of food product, they need to know how liked Starbucks' coffee taste. This means many of your consumers didn’t get Starbucks had enough early adopters inertia and are curious on new tastes. when they were launching. They, early adopters are very important factor to grasp first impression of new Having acquired numerous regular product. customers who like to come to Starbucks to drink an excellent coffee in a pleasant
Non-related Exploration This case presents the situation that an exploring organization gets barely merit from exploitation, since their new business or new product is not related with their existing business category. Sometimes companies decide to start new business which is not related with their previous specialization to expand business area, they would like to operate at. In 1995 Starbucks and Capitol Records produced some CDs which were played in Starbucks stores and could be bought by customers just in cafes in case they like them (Schultz 1999, p. 212). Figure The non-related exploration 2. If you know yourself and know your even though you fight 100 times you may win 100 times. -Chinese proverb- When organization wants to introduce new product, they do research if customers are ready to accept this innovation. For example, when Food Company wants to introduce new types of food product, they need to know how many of your consumers didn’t get inertia and are curious on new tastes. They, early adopters are very important factor to grasp first impression of new product. Number of consumers who wants innovation (n) is number of consumer who are affordable for new product (b) among number of consumers who know about new product (p) and number of consumer who like new product (e) Consumers’ layer on new product can be expand as following (in case it doesn’t get advertisement) Figure Consumers’ layer expansion model In fact, there are not many consumers who want to buy new product (or new service) right after they are introduced. General consumers choose to wait until the product settle and be stabilized. This certifies the fact that early adopters are important when organization wants to introduce product or service with new concept. When Starbucks opened their cafe for the first, their new coffee taste and emotional marketing strategy were kind of shock for American citizen. Especially those group of consumers who were looking for new coffee taste liked Starbucks' coffee taste. This means Starbucks had enough early adopters when they were launching. Having acquired numerous regular customers who like to come to Starbucks to drink an excellent coffee in a pleasant