One of the issues faced by Japanese companies relates to their proprietary technologies: even though they had developed high technology, they could not achieve high economic performance and business competency. However, some companies succeeded in expanding technologies in other business fields and commercializing them based on their high-functional propriety technologies. According to March's (1991) study, these companies exploited existing technologies to find new customers and create new markets.

 Hence, we discuss and identify the logic of creating additional value, which appeals to potential customers, especially in expanding different business fields for companies. We seek an effective strategy for SMEs to create non-functional value in addition to existing functional value through two case studies: Aichi dobby and Kondo-Kikai, which developed and manufactured new in-house goods for new markets and customers.

 We found three common features in these case studies. 1) Understand the problems of existing products, which trend in different markets, and find a solution that provides high value to potential customers in different markets. 2) Concentrate promotional activities toward existing and potential customers, understand the utility and usability of newly developed products, and transform target customers from “Business to Business” (B2B) to “Business to Consumer” (B2C). 3) Follow up activities for new customers regarding the utility and usability of newly developed products that they bought, and maintain a long-term relationship with such customers.

 Therefore, we reconfirmed that it was an important strategy for SMEs to create non-functional value while adding functional value in different business fields and finding new and potential customers based on their core functional proprietary technologies.