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Complementary Assets

A final mechanism to capture the returns from the introduction of new products and services that entrepreneurs need to consider is complementary assets. As was mentioned earlier, complementary assets are assets, such as distribution outlets and manufacturing plants that are used along with a new product or service.[9]

Complementary assets allow companies to sell their products and services successfully even if they are less innovative than competitor products and services. Take automobile sales as an example. Hyundai may be more innovative than General Motors, but General Motors might still sell more of its vehicles in the United States than Hyundai. Hyundai lacks dealerships (a complementary asset to the innovative car product) in many parts of the United States. As a result, General Motors can sell a less innovative product than Hyundai just because its complementary assets are better.


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