Innovation and Competitive Advantage Changing Environments

Document Type:Essay

Subject Area:Management

Document 1

For instance, an entity can have a competitive advantage if it advertises a product for a price that is lower than a similar product from its competitor in the same industry. According to Gloor & Oxford University Press (2006), it is through innovation that an organization is able to introduce a new product or service in the industry and this makes it achieve a competitive advantage preventing previous, current and future competitors from outcompeting the competitive advantage company. As such, a market with a slow technological and adoption rate would likely to allow a company to maintain a competitive advantage over a long period (Gloor & Oxford University Press, 2006). It is therefore impossible for a company to maintain a competitive advantage in a market characterized by high technological and fast adoption rate such as in consumer electronics industries.

Sign up to view the full document!

And so the only way a company can sustain its competitive advantage in an industry where there are a rapid market penetration and high technology evolution is through innovation by identifying and maintaining a consistent differentiation vector that would leave its competitors to be in a catchup mode. Furthermore, they have flexible strategies which enable them to quickly respond to any change, something they are an expert at. In the beverage industry, the Coca-Cola Company has proven over the year to be among the top brands in the areas of competition and innovation. The Coca-Cola Company is maintaining a competitive market in the industry of beverages because they are good at keeping their secrets and that their competitors cannot decode their secret formula.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable