Narrative 6-5
Bill Gore started the W.L. Gore Company when he left DuPont to develop innovative uses for Teflon (PTFE),the then new non-stick plastic. Today,W.L. Gore is best known for Gore-Tex,a waterproof,windproof,and temperature-resistant fabric that breathes and does not trap perspiration and body heat. Gore-Tex is used for coats,gloves,camping and hiking gear,and for protective outerwear worn by firefighters and military,emergency,and medical personnel.
But in recent years,Gore-Tex sales have steadily declined. A number of alternative fabrics,such as Entrant GII and eVENT,work nearly as well but cost only $6 to $8 per yard compared to $15 to $30 per yard for Gore-Tex. So W.L. Gore must reduce its dependence on Gore-Tex,which accounts for 21 percent of its $1.6 billion in revenues,by consistently developing other innovative products.
In general,W.L. Gore goes for dramatic rather than incremental improvements. On its website,it declares that Gore's products are designed to be the highest quality in their class and revolutionary in their effect.
Gore created Glide dental floss,which doesn't shred,tear,and get caught in your teeth. Glide is a thin,Teflon-like tape which was soon the number two floss in the market,and today is the number one floss recommended by dental professionals. Gore then sold Glide to Procter & Gamble,but still makes Glide for P&G,earning substantial profits. It then reinvested in other innovative products,such as CleanStream filters for vacuum cleaners;Radome,used to cover microwave transmission sites (think of the large golf-ball structures you sometimes see around airports);stent-grafts for medical treatment;and many more.
Gore frequently asks potential customers for help when designing new products (e.g.,design iterations and testing). For example,the Gore engineer developing Elixir acoustic guitar strings talked to another Gore engineer who played the guitar. They,in turn,asked experienced guitar players to give them feedback on the product. Thanks to Elixir strings' thin plastic coating,their resistance to dust,skin fragments,dirt,and oil lends a better sound for five times longer than normal guitar strings. Elixir strings now have a 35 percent share of the market.
Gore also provides flexible options for innovation by making time for dabbling. Everyone in the company is encouraged to spend 10 percent of their time on new ideas or products. If those ideas have potential,a Gore sponsor,typically a more senior person,will guide and coach that employee on how to further advance the idea or product. When ideas or innovations are to the point where further development requires a significant investment by the company,they are reviewed by a multifunctional team that goes through an exercise called Real,Win,Worth. They ask: Is the opportunity real
Is there really somebody out there that will buy this
Can we win
What do the economics look like
Can we make money doing this
Is it unique and valuable
Can we have a sustained advantage [such as a patent]
-Refer to Narrative 6-5. Which kind of innovation is encouraged at W.L. Gore?
A)transitional
B)compression
C)dominant design
D)incremental

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