Product Innovation Strategy Research Based On The Positioning Perspective

China joined the WTO and came into the new tied of global economic growth twelveyears ago. Since2008, united sub-prime crisis has given rise to the suffering of the economyof the whole world. Inevitably, domestic business has been largely affected, especially thefirms off the coast, some of which has gone bankrupt for the insufficient export. During thetransformation of the way in which economic grows, the government has brought out thestrategy――change from “made in china” to “created in china” to improve the ability ofproduct innovation. Mengniu, Wahaha and Yunnanbaiyao are chosen as the samples of thispaper. There is a three-factor theoretic framework made by employ the normal multi-casesstudy method. The three factors are: The way a company entry into the market; to overcomethe adverse effects of the factors; create sustainable competitive advantage. There are threequestions: First, faced with market opportunities, which innovation strategy and enterprisecan apply to access to the market? Second, how can a company conquer negative factorswhich will bring challenge to the strategy? At last, how can a firm win the advantage ofsustainable competition?The result of this study shows:(1) In face of the market opportunities, corporationschose their target customers on the basis of their market positioning and meet their demandthrough innovation. Chinese firms have chosen following strategy, buying strategy andself-dependent innovation strategy in the process of product creation. Each way has its ownorientations (attribution positioning, interests positioning, value positioning, to achieveproduct differentiation. Not every orientation is required at the same time. For example, if youhave chosen attribution, the other two are not necessary（.2）In that process; companies will besubjected to challenges caused by the negative effects of industry and organization. Outsideeffects from industry layer are management system which government applies to sectors andhabits of customers. From organization layer, entrepreneurs’ initiative spirit, organizationsystem, operation principle and resources will affect that process too. Faced with thechallenges mentioned above, firms can realize leap-forward development by leadingcustomers’ demand and bringing advanced management experience from abroad.（3）As thecarrier of a firm, product is created to gain sustainable competitive advantage. For a startcorporations can take following aspects into consideration: reinforce management and broaden the width of the product line; Meet the demands of different customers and realizediversified operation; Enhance technical innovation and apply patents to build competitionbarriers; Reform the marketing strategy, which contains product strategy, channel tactic,pricing policy and promotion strategy.