How Innovation Contribute to Competitive Advantage.

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How Innovation Contribute to Competitive Advantage.

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Introduction

Innovation according to Pete (2013), is a deliberate process of ideas which are executable and communicated to the relevant audience in support of the initial concept. He further argues that innovation ideas cab be small or big but should be seen to create a new category or the original one to make it more profitable and gain market leadership. (Foley, 2013)

Competitive advantage is a combination of practices that make an organization look better than others in the same industry in the customers’ perception. Due to increasing local and global competition, business enterprises were the first industry to adopt this method to secure their presence in the market. However, in the current dynamic environment, not only the company are supposed to seek a way to gain competitive advantage but also individuals are finding ways on how they can improve their service deliveries as employees (Amadeo, 2016).

To understand the combination of policies and procedures to use to make an effective competitive advantage through innovation, a business should understand what they produce. Whether the firm wants to offer product or service, they must be aware of the market trend and deliver real value by describing the benefits and advantages of the product or services. Secondly, the businesses need to determine their target market.

Through market segmentation, the company should know exactly who the customers are and what they need. Finally, the organization should define the competition in their industry. This consequently enables the business to identify the gap and fill it (Melordy & Nadler, 2012).

Modern innovation in today’s market.

Most of the business affairs have shifted from analog to digital signifying a need for a better match in the business change to accompany these dynamics.  Over that last decades, business environments have been struggling to be abreast with the innovation, but fruits have not been arrived at yet due world becoming a global village with increasing market wars. To secure a higher position in a market share, businesses both the manufacturing and service-oriented industries should invest heavily in acquiring and sustaining innovative spirit throughout their operations.

Sustainable Competitive Advantage.

According to Porter (2011), when a business become a market leader, it does not necessarily mean the...