Strategy innovation involves...

• A. Preserving existing industry methods
• B. Following competitors' strategies exactly
• C. Challenging existing industry methods to meet newly emerging customer needs, add value, and create new markets and customer groups
• D. Focusing only on price reductions

Answer: (C)

Strategy innovation is about rethinking how value is created and delivered to meet newly emerging customer needs, add value, and open up new markets and customer groups. It goes beyond sharpening what already exists or copying rivals; it seeks to redefine the offering, often through new business models, capabilities, or delivery methods that unlock untapped demand. By challenging established industry methods, it allows a company to create a distinctive position and generate growth in areas competitors haven’t yet explored.

Preserving existing industry methods stays with the status quo and focuses on incremental improvements, which isn’t about renewing strategy or creating new markets. Following competitors’ strategies exactly is imitation, not innovation, because it replicates what others are doing instead of discovering unique value. Focusing only on price reductions is a tactical move that can erode margins and doesn’t capture the broader, transformative approach of redefining value and markets.