How to implement secondary product innovations for the domestic market: a case from Haier washing machines Online publication date: Sat, 10-May-2014
by Xiaobo Wu; Wei Dou; Yu Gao; Fangli Huang
International Journal of Technology Management (IJTM), Vol. 64, No. 2/3/4, 2014
Abstract: The large domestic market of China has provided opportunities for Chinese firms to implement successful product innovations based partially on imported technology. This paper analyses the secondary product innovations as redesigning and reconstructing the original product architecture of first movers in order to adapt to the customer needs in the domestic market. We have found that latecomers can implement secondary product innovations for the domestic market in three ways: architecture localisation (adjusting to general local needs), customer-triggered special design (changing to penetrate segments with special needs), and derivative integration (reconstructing/recombining components). Considering those implementation methods, there has been an induction of secondary product innovation stages in Haier washing machines. This paper contributes to latecomer market adaptation and product architecture issues in addition to the traditional technological catch-up analysis.
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