Is Imitation Better than Innovation?

"Imitation's value may be even more prominent during a down economy such as today's", Oded Shenkar, Ohio State University Professor and Ford Motor Co. chair of global business management.

"You might argue you have to be more careful how you spend a dollar on the return you are getting," he said. The imitator can find a larger market "because, as we suggested, imitation saves some costs. You can price the product cheaper. ... Look at the proliferation of store brands. You look at Heinz ketchup, and Kroger comes out with its own version. The price is cheaper. You can argue in today's environment people are more likely to take a more serious look at Kroger product."

"When everybody is talking about innovation, and by the way I'm not saying that innovation is not important, I'm trying to remind people that imitation is as important as innovation. It provides a better return on your investment," he said.

He cites McDonald's as an example of immovation. The company's imitation of the White Castle hamburger chain led the Golden Arches to golden rewards. Likewise, Visa and MasterCard easily surpassed the first credit card, Diner's Club.

"You can look at Pan Am and TWA as pioneers of aviation, but where are they now? This is often the case when you look at different sectors," he said.

"The major players are really not the innovators."

Bottomline:

What do you think? Do you agree with Professor Shenkar? Look at Apple! It did not invent the MP3 player, Smartphone nor the Tablet. Yet, it has created blockbuster hits including the iPod music player, iPhone smartphone and the iPad tablet. Did Apple make original innovations better? I am not saying that Apple is imitating, but Apple did have the knowledge and insight from products made before, and used this as a starting point. Apple figured out the essential customer need and created products that customers simply can't buy enough of. What about the new Amazon Kindle Fire tablet? Amazon had the time to see all the tablets before, and design one that will appeal to their customers at a cost-effective price. Would Amazon Fire disrupt the Apple iPad with a lower price point? Visa did not invent the credit card; it made the credit card services better. And better it did! Visa is the household name for credit cards now.

References:
http://www.marionstar.com/article/20111112/NEWS01/111120301