Swan Vesta’s innovative design, at the time, marked a departure from standard approaches, pioneering a new and cost-effective product design. This innovation not only enhanced the functionality and performance of the product but also had flow effects throughout the supply chain, potentially improving other aspects of production. Additionally, this unique design served as a form of market differentiation, setting Swan Vesta apart from competitors. This demonstrates Swan Vesta’s creative thinking and capacity to implement innovative changes in product design, ultimately enhancing convenience and usability and establishing their product’s distinctiveness in the market. Furthermore, it can be related to the Cost Reduction in the New Product Classification, as it was initial design and came from a need of reducing the cost of the product, as the company was struggling. As so, the product was redesigned to be produced at a lower cost.

Dynamic Capabilities refers to a company’s ability to adapt, innovate and response with its resources and processes to variations in its external environment. Therefore, we can relate to the case itself as the company took an innovative approach to it, which simplified the process of lightning the matches and enhanced convenience and usability. This strategic move not only reduced costs but also allowed Swan Vesta to align with consumer preferences and the growing demand for more convenient matchboxes. Consequently, the company gained a larger market share, differentiated its product from competitors, while effectively responded to market needs.

The case also illustrates the implementation of lean manufacturing principles, particularly in the later stages of development. Lean manufacturing aims to maximize value while minimizing waste, and the decision to remove sandpaper from one side of the matchboxes aligns with this principle. This action reduces material waste, saves time by streamlining production steps, and ultimately enhances overall performance. Furthermore, Swan Vesta’s recognition of the value of employees’ ideas and involvement in problem-solving and decision-making processes reflects the philosophy of lean manufacturing, which emphasizes empowering employees and fostering a culture of continuous improvement.

Frugal Innovation evolves reducing the complexity, cost of a product and its production and resources efficiency. This concept is exemplified in the case of the Swan Vesta matchbox. Adding sandpaper to only one side of the matchbox simplified the design, making it more basic and user-friendly, while also cutting costs and maintaining product quality. The idea focused on the core need of ignition, without unnecessary features, ensuring it met the primary requirement efficiently.

To illustrate and reinforce the Frugal Innovation model discussed in the case, follows a modified framework derived from the key elements of Frugal Innovation business models outlined in the Farooq, R. and Farooq, R. (2017) paper.

Trott, P. (2021). Innovation Management & New Product Development (7th edition)