Start with Why: How Great Leaders Inspire Everyone to Take Action

by Simon Sinek

even when based on sound research, can lead us astray.

Like so many before it, the company confused innovation with novelty. Real innovation changes the course of industries or even society. The light bulb, the microwave oven, the fax machine, iTunes. These are true innovations that changed how we conduct business, altered how we live our lives, and, in the case of iTunes, challenged an industry to completely reevaluate its business model.

If a company adds too many novel ideas too often, it can have a similar impact on the product or category as the price game. In an attempt to differentiate with more features, the products start to look and feel more like commodities. And, like price, the need to add yet another product to the line to compensate for the commoditization ends in a downward spiral.

If Colgate needs to help us pick one of their products because there are too many variations, how are we supposed to decide when we go to the supermarket without their Web site to help us?

There is a big difference between repeat business and loyalty. Repeat business is when people do business with you multiple times. Loyalty is when people are willing to turn down a better product or a better price to continue doing business with you. Loyal customers often don’t even bother to research the competition or entertain other options. Loyalty is not easily won.

Is a Ferrari F430 sports car better than a Honda Odyssey minivan? It depends why you need the car.