Competitive Strategy and Competitive Advantages

1176 Words5 Pages
1- Innovation is important because it allows differentiation from competitors, manufacturing is easier and more flexible, the bar for competition is raised, and there is greater market segmentation. 2- Some advantages of technological innovation are: a wider range of products and services can be delivered to people, GDP has increased, people can communicate in every part of the world, the production of food has become more efficient, and it has yield medical treatments to improve medical conditions. The quality of life has improved. It has created new knowledge to solve practical problems. Disadvantages include: harmful pollution to surrounding communities, erosion from fishing and agricultural technologies, elimination of natural…show more content…
2- Well developed firms are likely to adopt to new technologies instead of developing them because new technologies does not have a dominant design. Established firms are very familiar with the dominant design and do not experiment with new technologies. Instead, the established firms focuses on new knowledge/understanding of existing technologies. It tries to improve products and make production more efficient. New entrants are eager to experiment with new technologies because they are introducing something new into the market; they can perhaps build on that to develop market share. 3- The invention of a laptop with Internet is a radical innovation. It is portable, users can access internet on the go without wires, and work can be done from anywhere. The laptop is competence enhancing as it has built the way for other technologies (e.g. tablets). 4- S-Curve technology improvement: in the early stages, the technology is not understood and effort is put into understanding the technology, when the understanding of the technology is better, improvements are accelerated. The technology begins to gain legitimacy, more improvements are made and the
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