When the performance of two or more competing products has improved beyond what the market demands, customers can no longer base their choice upon, which is the higher performing product. The basis of product choice often evolves from functionality to reliability, then to convenience, and, ultimately, to price.
Question then is, where is our product relative to the other incumbent? Once we meet compete on functionality, then we commoditize to reliability, ease of use, and finally compete on price as the products are indistinguishable otherwise. Under performing technologies need to compete on price initially and add ease of use, reliability,and finally functionality all the while keeping price low. By then, incumbent is too late to respond.
