Innovative Management Strategies

What benefits can it bring having innovative management strategies? How do they implement innovative management strategies? Let us find out the answer below.

What Are Innovative Management Strategies?

Innovative management strategies are those that a company uses to differentiate itself from its competitors. They are proven to be effective in the long run and help companies stand out from the crowd. 

They can also be referred to as differentiated strategies. Innovative management strategies can be classified into four categories: 

• Product development strategies
• Marketing strategies
• Operational strategies
• Financial strategies

Let’s take a look at each of these strategies in detail below.

Product Development Strategies

Product development strategies pertain to developing new products and services. A company has a wide range of options when it comes to developing new products and services. 

Let’s take a look at the most popular ones:

Product expansion:

A company can expand the range of its products or services by selling different kinds of products or services alongside its existing products or services. For example, a fast-food chain may sell additional drinks or desserts.

Alongside its main products are burgers and fries. 

Product line extension:

A company can also extend its product line by selling new versions of an existing product or service. For example, an internet service provider may extend its product line by offering high-speed internet connections to businesses as well as households. 

Product innovation:

A company can develop innovative products by using technology or some other non-traditional methods to create new products or services. For example, a car manufacturer may develop self-driving cars using artificial intelligence technology. Product modification:

A company can also modify an existing product by tweaking some aspects of it or combining it with other products to create a new product altogether. For example, a food manufacturing firm may combine a particular type of meat.

With vegetables to create new burger recipes for their customers. 

New markets entry:

A company can also enter into new markets by selling its existing products in a new market segment outside its current market segment. For example, an e-commerce retailer may opt for entering into the luxury fashion segment.

It is by selling more expensive branded clothing items online to attract more high-end customers for their business. 

Newmarket entry:

A company can also opt for entering into an entirely new market segment that it has not entered. Before by selling its existing products and services in a completely different industry segment altogether.

Such as moving from manufacturing toys in China to manufacturing electronic devices in India. Also, moving from manufacturing fashion accessories in the USA to manufacturing footwear in Europe. 

New channel entry:

A company can also opt for entering into a new channel by selling its existing products and services in a completely different channel. For example, an e-commerce retailer may move from online sales to physical retail stores. 

To tap into the large offline market. 

New distribution strategy:

A company can also opt for a new distribution strategy by expanding the number of channels it uses to distribute its products or services. For example, an internet service provider may expand its distribution network.

It is to include new sales channels such as physical retail stores, in-store kiosks, and pop-up stores.