This is an example of creating an innovative product. Such an strategy is adopted by firms within a competitive market to attract customers and to try to overperform the competitors.
On one hand, in order to deal with competition, it is possible to compete in prices. Or, on the other hand, to enhance the quality of the products offered, as in this case, where the electronics company introduces innovative features in the new smartphone so that customers might appreciate those new functions and prefer their products over the ones of the competitors.
