1. How new business ideas come about

2. How new business ideas come about
Think about the following:
What is meant by an original idea?
What is meant by competitive advantage?
What are the benefits of adapting existing products or services?
Can you think of ways Richard Branson has been original in his business ventures?

3. Key words Original ideas Ideas that have not been done before
Competitive advantage
A feature of a business that helps it to succeed against rivals
Adapting existing products
Finding new products based on the original one, such as Wall’s White Chocolate Magnu.

4. Original ideas
“The man who has no imagination has no wings.”
Muhammad Ali, greatest ever boxer
It is not enough to have an original idea, you need to be able to communicate to others and you need the resources to turn it into a product or service.
Well-run businesses encourage staff to share their original ideas.
For some businesses, original ideas form the basis of their operation and success.

5. New ideas and competitive advantage
Competitive advantage is factors that help a business succeed against its rivals.
Ryanair – low-cost and low charges
Segway hoverboards – innovative idea but banned for use on roads and pavements
Tesla Model 3 – could become the first mass-market all-electric car
“The creativity that emerges from the company comes from the many ideas of the people who are here.”
John Rollwagen, chief executive

6. Adapting existing products and services
Most new products are an adaptation of an existing product.
Adaptation requires less research and development time and money.
Existing production machinery can probably be used with some adaption.
It is very hard to come up with and develop an entirely new product or service.
Adapted products can product the original product.

7. Examples of successful adaptations
Monster Energy Ultra (zero calorie energy drink) launched by Coca-Cola to bring more women into the energy drinks sector. a zero calorie energy drink
Giant Crumpets launched by Warburton’s increased their crumpet sales by 13.3 per cent while rival Kingsmill’s crumpet sales fell by 26.3 per cent.
Can you think of any others?

8. Need for new ideas is constant
Being able to keep coming up with new ideas depends on:
staff caring and engaging with their jobs
cash for research and development
recruiting a diverse range of staff.

9. Summary questions
Write down the answers to these questions on lined paper.
What is meant by an original idea?
Give an example that Apple phone have as a competitive advantage over Samsung phones.
Give an example of another product that has been adapted from an existing product.