Thanks for the linked in users for their comments on the discussion.

I have consolidated the discussion below.

Analyze your current situation

You are a start up and trying to enter into the matured market :

Unless you have distinct technology or pricing strategy it is not advisible. Bare guts will only make you lose money.

You are an established organization and you are seeing declining sales :

One of the reasons this might happen is the out-of-sync state between your Commercial-Technical teams. And one can assume that is the reason behind that might be a new disruptive technology.

You are an established organization and want to increase market share :

Improvement / Extension & Something new

Lets say it is late 1990’s : Company X has been in Auto industry and they thought it was time to focus on refreshing themselves and bring a new meaning for their product ( a car ). So, they sat down and started discussing. They found some interesting points.

Optimization :

Customers are buying what we are selling but we want to give them a better product. Lets bring in the best possible of every part. Lets try focusing in the order of impact on the market.

Engines – Consume less oil and give good mileage. That will make the car more economical and will act as a good pick for the new customer. Interesting !

Suspension – Feel of the drive must be improved. Customer is willing to let go on 2 miles less per gallon of gas, but he wants a comfortable drive. Lets make the suspension engines better to reduce the noise of the car and in turn provide a better user experience.

Design– Attractive interiors and new shape of the car. That is the WOW ! factor for any product. Its like the BMW factor for people like me. They just want to own it ! I am still working on that though ! I don’t think i can make it any time soon. Anyways ! People want good looking cars. Every one who comes in wants to see something very new for an affordable price.

The discussion continued and they did not ‘even’ leave Tires presuming the fact that there must 4 for a car. They looked at their Tire vendors catalogues looking for a better one !

Finally out of these they pick the top three and will start working on them. They just want it to be better.

Something New :

They started talking about Adding accessories like Bluetooth car kits etc etc.

This something new is of course not so easy to find but you need to look at other industries to find that something new in your industry. That is like putting a TV in the mobile phone, a GPS in the car
so on and so forth.

What can be very new in a car? Faster engine, hmm, where do we get it? They went in search of race car engines and started putting in those in the regular cars. Faster cars for everybody. Later Ferrari realized why can’t i do that? They started making Ferrari cars and it again became something ordinary.

The possible solution according to ones market might finally end up being pricing strategy or going in search of new customers overseas or moving horizontally into other markets where your technology ( but not the product are applicable ! ).