Top 5 Innovation Killers - #4

#4 - An unwillingness to cannibalize sales. The only way to prolong success is, paradoxically, to destroy it and create something even more valuable. Technology companies know that they must consistently add new features at lower prices if they want to stay ahead in the market. The same principles are true in other markets. Gillette has consistently strengthened its leadership in razors through its willingness to make its existing ranges redundant and introduce new, higher performing products and brands.

General Mills analysis -- Apple is the most obvious example of a company that isn't afraid to cannibalize sales with its new products (e.g. Iphone, Ipod, etc.). At General Mills, we factor both margins and incrementality into our go-no go decisions for new products -- the higher the expected incrementality, the more willing we are to 'lean in' on margins. The implied opportunity for Mills is to be more aggressive and intentional in developing offerings that, on one hand, will make current offerings redundant or obsolete, but on the other hand, will keep consumers in the Mills family and away from competitor offerings.