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This link recently saved by ab_aditya on July 15, 2010
Feature proliferation is the name of the game in new product development. Most innovation in the market is composed of incremental improvements to what's been done before. Yet those new features often outpace what the consumers actually want. In the case of the Fusion, Gillette had to launch a marketing campaign specifically targeted to their own Mach3 consumers. Instead of campaigning to steal share from competitors, they had to practically beg their own consumers who were plenty happy with the earlier Mach3 to upgrade to the more expensive Fusion. They over-served the market.
As Clayton Christensen argues in the Innovator's Dilemma, the best move when the market is over-served is to innovate from below, not to join the new feature arms race. Less can be more. Simplicity is the killer app.
This link recently saved by ab_aditya on November 20, 2009