Pitney Bowes Inc: Innovation Process

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Euchner’s main concern is whether Stamp Expression was the right product to promote to market. Based on analysis below, it is found that Amita project has several pitfalls which led to the slow initial sales and possible failure in growing this product. It would be better if Pitney Bowes uses acquisition to grow the small business segment. Analysis Innovation Process and personnel One major issue that Pitney Bowes had is the total separation between their two essential roles, product engineering and future-scanning, in innovation process. For Amita’s innovation process, all concept development and commercial feasibility are being done in AC&T without engaging product engineering team. If product engineering team has been involved earlier,…show more content…
Only senior support can safeguard the critical value proposition for the product. Target markets Since Stamp.com has already held 85% of market share, Stamp Expression should be used as a disruptive innovation in order for Pitney Bowes to enter the market. Stamp.com charged a premium of 130% over postage value to provide full-colored self-adhesive stamps. One possible strategy for Stamp Expression is to target those customers who require less featuring stamps and those who like to pay less. Only if Pitney Bowes enters as a lower-cost supplier can it get business from existing stamp.com customers. As mentioned in analysis, residential service is a growing segment. Pitney Bowes should investigate the requirement in this segment and see whether Stamp Expression is suitable for them. Besides, as low-cost meters were stacked in inventory due to short-term rental agreement, these meters can be offered to residential families at minimal price. If these meters are offered during Christmas for example, when all families send Christmas cards to others, Pitney Bowes can probably make a seasonal profit. Sales channel As seen from slow initial sales, telemarketing may not be a good channel for selling Stamp Expression. Pitney Bowes should try retailing as another channel. Although retailing was proven not working for those old postage meters due to the procedures customer needs to follow, the company

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