Great ideas are generated in different ways. Sometimes an idea may simply be when a company takes advantage of an opportunity to extend its product range, to offer more choice to existing customers. Or a great idea could allow a company enter a market which was closed to it before.
Companies which are prepared to spend a lot on R&D may make a breakthrough by having an original idea for a product which others later copy, for example Sony and the Walkman.
On the other hand, some products are developed in response to customer research. They come from customer ideas. These products are made to meet a need, to satisfy consumer demand. Or the product does something similar to another product, but faster, so it saves time. Some people will buy new products because the product raises their status – gives them a new more upmarket image.
I would like to tell you about two good business ideas. Penske-Wynn is charging people an entrance fee to come into the car showroom. People do not usually pay to visit a car showroom. There were far too many visitors, and only a few of them intended to buy a car. This idea brings in about $100,000 a month.
There is another interesting story. Alex Tew opened a one-page website, divided it into a million pixels and sold the space as advertising. He made up $1.000.000 from his idea.