Choosing the right product strategy can make or break your business.
Every business struggles with one critical question when it comes to new product development. Do you play it safe with incremental improvements or swing for the fences with innovation? This single decision determines:
- Your budget
- Your timeline
- Your competitive edge
Here’s the thing:
Both strategies work. But they work in very different ways.
This article explains the difference between incremental and disruptive product strategy to help you decide which is best for you.
Time to jump in!
Here’s what’s inside:
- What Are Product Strategies?
- Incremental Product Strategy Explained
- Disruptive Product Strategy Explained
- Key Differences Between Both
- Which One Fits Your Business Best?
What Are Product Strategies?
A product strategy is your game plan for developing, launching and growing your product.
It helps you answer the big questions. What are you building? Who is it for? How will you differentiate in the market? Doing this right is important because 95% of new products fail. That seems frightening… but understandable when most brands don’t plan ahead.
Two main paths dominate the modern product landscape:
- Incremental (small, steady improvements)
- Disruptive (bold, game-changing shifts)
Many firms offering OEM product engineering services will assist you through both avenues. If you need to improve upon an existing product or are ready to introduce a brand new product from scratch, utilizing a team of professionals with experience in new product development services can ensure that you allocate the proper resources and foresight to prevent unnecessary obstacles. Finding the right OEM product engineering services partner can provide you with the technical expertise you require while circumventing the massive overhead of hiring an in-house staff.
Now for a breakdown of each strategy…
Incremental Product Strategy Explained
Incremental innovation is the slow and steady approach.
Incremental innovation doesn’t try to redesign things from scratch. You take what you already have and find ways to improve it just a little. Consider your cell phone. Every new version isn’t a brand new design. It may have an improved camera, a faster processor, or a brighter display. That’s incremental innovation.
Why do businesses love this strategy?
- Lower risk
- Faster time to market
- Predictable results
- Easier to fund
You already have people who love your product. Small iterations please them and bring in new customers. This is the safest way to scale.
Here are some real-world examples of incremental product strategies:
- Toothpaste brands adding a new whitening formula
- Car manufacturers releasing yearly model updates
- Software companies rolling out feature updates
- Sneaker brands changing colours and materials
Want proof? Apple, Toyota, and Colgate are just a few household names that rely on incremental innovation annually.
But there’s a downside…
Incremental changes will make you miss the next BIG opportunity. Someone could release an ALL NEW product that dwarfs yours. How do you fight that? With disruptive tactics.
Disruptive Product Strategy Explained
Disruptive innovation is the bold, market-shaking approach.
Think creating Netflix when there was Blockbuster. Uber when there were taxis. Tesla when there were car companies. Companies that disrupt don’t evolve from what already exists. They redefine the game entirely.
What makes disruptive strategies so powerful?
- Huge market potential
- First-mover advantage
- Ability to define new categories
- Massive brand recognition
Disruption when done right REALLY goes Viral. Uber took billions of dollars in market share by reframing the taxi problem.
But here’s the catch…
Disruptive innovation is dangerous. Really dangerous. Creating something brand new from scratch requires time, money and a healthy dose of risk tolerance. All disruptive ideas won’t pan out. In fact, most startups fail within five years and many of those are pursuing disruptive ideas.
So how do you make it work? You need:
- Clear customer insights
- Strong technical talent
- Patient investors or funding
- A team that can pivot quickly
Get all four right, and disruption can transform your business overnight.
Key Differences Between Both
Now that both strategies are clear, here’s a side-by-side comparison.
Speed to market:
Small wins. Incremental improvements launched quickly. Disruptive can take years to fully implement.
Cost:
Incremental costs less. You leverage existing tools, teams and technology. Disruptive initiatives often require massive R&D budgets.
Risk level:
Incremental has less risk. You know your market space. Disruptive has more risk. You are typically building for a market that hasn’t been realized yet.
Reward potential:
Disruptive strategies win big when they succeed. Incremental strategies deliver steady, predictable growth.
Team requirements:
Incremental builds on existing teams. Disruptive often needs new blood, new skills and external collaborators.
Pretty different, right?
The important thing to keep in mind is that neither strategy is “better”. They are just trying to achieve different goals. Successful companies pursue both – driving continuous improvement while betting on the disruptive concepts.
Which One Fits Your Business Best?
Choosing between incremental and disruptive comes down to a few key factors.
Ask yourself these questions:
- How much budget do you have?
- How quickly do you need results?
- What’s your risk tolerance?
- What does your customer base need right now?
If you run a small business and are cash poor, incremental is less risky. You’ll recoup investment quicker and stay solvent.
If you have plenty of money and run a startup with an audacious vision, disruptive may work for you. The rewards can be huge.
Here’s a smart approach many companies take:
Allocate 70% of your resources to incremental and 30% to disruptive initiatives. You’ll get continuous cash flow from the incremental and allow time for disruptive initiatives to mature.
Some large brands operate on an 80/20 split. Some others prefer a 60/40 split. Find what works for your brand, test, and tweak as you learn.
Product strategy is not a “set in stone” decision. Markets evolve. Customers needs evolve. A strategy that made sense last year may not make sense today. Revisit your strategy every few months.
Final Thoughts
Both incremental and disruptive product strategies have their place.
Incremental strategies keep your customers happy and provide predictable growth. Disruptive strategies disrupt markets and create huge opportunities. World-class product teams embrace both. Leverage small updates to pay for large swings.
To quickly recap:
- Incremental = small, safe, steady wins
- Disruptive = bold, risky, huge potential
- A blended approach usually beats picking only one
Choose your road, but build your product creation engine! Nothing will ruin good ideas faster than sloppy implementation. Plan. Test. Revise. Your users will thank you.
