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When we’re developing websites and apps at O’Brien Media our goal is to create value innovation. This happens in creating something better than the current solutions at a lower price.
Competing only with lower prices canablises business. Someone will always do it cheaper. As prices drop and profits shrink, running the business gets harder and harder. Instead, create something better than the current solutions, or find a new market and build something for them. But the ultimate success comes with the two together: a better solution at a lower price.
Some well known examples
Uber
Ride-share company Uber manage to deliver lower prices to their customers than traditional taxi companies while also providing a better experience. The Uber app shows where the car is coming from, allows driver ratings, and simplifies payments after receiving your card details the first time. Its huge success and rapid expansion is no surprise.
AirBnb
AirBnb works similarly: they provide a better experience, renting a normal apartment with a kitchen for less money than a small hotel room.