Essay Questions Importance of Innovation for Firms to Compete in Multiple Industries

Essay Questions #1

  1. Importance of Innovation for Firms to Compete in Multiple Industries

As evidenced in in Distanont and Khongmalai (2020), innovation is identified as the most critical driver of competitive success in multiple industries. Majority of the organisations end up earning more than third of sales for the products developed in a timeline of 5 years. Through the product innovations, this assists organisations protecting margins through provision of new, differentiated characteristics. Also, for organisations in manufacturing sector, through innovation, the process is holistically attained.

Further, from an individual experience, through innovation, it is possible for an organisation to meet the entire clients expectations and preferences which are promptly changing and in a high growth rate. Hence, considering the consistently changing business environment, need for organisations to innovate is to remain in these industries and markets. All opportunities presented are explored holistically. The outcome of this would include reinventing multiple products to innovation technologies. This is by reducing the overall costs of operation and hence gaining more profits. This is since as noted in Small Business (2019) innovation positively assists an organisation to leverage on cost leadership, differentiation, defensive strategies and strategic alliances. Nevertheless, organisations must appreciate on the type of innovation adopted either disruptive, incremental, sustaining and radical innovation.

  • Advantages of Technological Innovation, Disadvantages

In a review by Mishra et al. (2019) on technology, it observed that despite of innovation having immense advantages, it is appropriate recognising existence of disadvantages. For the advantages, they entail an increase in productivity levels and ensuring that organisations are offered with new and better goods and services. These are core for improving their entire standards of living. Also, the advantages of the innovation are often slow for materializing. This is since they are found to fall broadly in different population needs and demands. Conversely, considering the disadvantages….

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