Innovation new ideas for satisfying needs and by

Innovation & CompetitivenessAs markets are constantly changing,innovation and the willingness to produce new things are becoming one of themain approaches that companies could gain competitive advantage.

These changesare driven by consumers who claim more and more, by competitions whocontinuously come up with new ideas for satisfying needs and by technologywhich is growing day by day. If firms do not keep up with their markets’ changesand satisfy needs they are basically out of the competition. Whentalking about innovation and competitiveness I think is essential to mentionthe ‘blue ocean’ strategy. A clear example that shows innovation is totallyrelated with competitiveness is the case of Ford and the Model T. In 1908, Fordcame up with an innovative product, the Model T, and afterwards created theautomobile industry as we know it today, this creation of blue ocean brought themhuge profit and economic growth. This smart strategic move boosted the marketshare of Ford to 61%. So, I want to say by using this example is that companiesshould not battling competitors because they will not achieve growth and profitand end up competing in a bloody red ocean as they fight over shrinkingprofits. Therefore, a really good way to achieve progress and competitiveadvantage is making the competition irrelevant by using the innovation in orderto create blue oceans.

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On the other hand, only bycreating new markets or blue ocean is obviously not enough, companies shouldlengthen their profits and growth by swimming as far as possible in this blueocean created, distancing themselves from potential imitators. Let me introduceanother famous example, Nokia. This company had an incredible history ofinnovation – was the initiator in wireless infrastructures, perhaps the firstcompany to transform mobile phones into fashion electronic equipment and createdthe first smartphone at the end of the 20th century. However, theproblem Nokia had was that they never really successfully transitioned into thenew age. Even though Nokia created a blue ocean, their success did not last andended up with huge losses and finally they had no more option than selling itshandset division to Microsoft. So we can see clearly that innovation doesn’tgive competiveness, but a constant innovation does.Inmy opinion, innovations can bring two types of competitiveness: technologicalcompetitiveness, which focuses on improving performance through new productsand new markets access, and a second one is cost competitiveness, which is basedon innovation replacing human labor process and industrial technology, whichpresumes a more flexible and reduced costs production.

Toconclude, innovation can help a company achieve a competitive advantage andhelp the company to get bigger and stronger. As the era we live in is really progressive,it is highly important for companies to identify moments and formulatestrategies in order to take advantage of the opportunities. The most profitablecompanies at this moment are almost always the most innovative companies, thisshows how important is to think out of the box and this explains the closerelationship between the competitiveness and the need for innovation. Responsibility& InnovationAs CRSandinnovationhasemergedslowlyoverthepastdecade,they arenow thefoundationofbusinesscompetencies.In my opinion, there are three ways that we can relate responsibility andinnovation. First, organizations need to make surethat innovations are responsibly developed and implemented; that is, that newproducts or services avoid harming people and the world.

We can call thisdimension the ‘responsibility to avoid harm’. Second, in order to improve living conditions andsafeguard the Earth’s life-support system, organizations should provideincentives to develop innovations that alleviate or reverse environmentaldepletion and social misery. We can call this dimension the ‘responsibility todo good’. Third, it is necessary to put in place global governancestructures that facilitate the first and the second dimension of responsible innovation.This can be named as the ‘governance-responsibility’ of organizations.From my point of view, successfulbrandsin thefuturewillbefor sure theonesthatseethesechallengesasopportunitiesforinnovationand the ones that tackletheissuessuchas:socialjustices,povertyandclimatechange.

 Responsibility& CompetitivenessIf companies make environmentalresponsibility their corporate value and publicize that value, both externallyand internally, they will be able to build solid relationships withcommunities, customers, investors and regulators. And these relationships can,in turn, give them the respect and credibility they need to successfullynegotiate issues that could be important to their company later on. If environmentalorganization became an integral part of the corporation, this environmentalperformance does have far-reaching implications that extend beyond the realm of’environment’. For example, ‘green’ companies are becoming the ones that notonly attract and retain customers, but also have a competitive edge when itcomes to recruiting and holding on to the best and brightest employees, andtherefore, the company becomes more competitive.Thereare more and more enterprises that are increasingly taking socialresponsibility as a resource of competition advantage. SA8000, theinternational guideline of social responsibility, is undoubtedly the importantresources to win international competitiveness.

Products passing SA8000certification have stricter moral standards in social responsibility and are ofmore humanism and morality features. Here goes another clear example: in 2004,Zhe Jiang Hai Zheng Pharmacy, integrated the concept of social responsibilityinto enterprise development to implement differentiated competition strategyand enhance core enterprises of the enterprise, and today is one of top tencompetitive listed medicine companies in China.Comparedwith competitors, the enterprises actively taking social responsibility willhave loosened supervision and better operation environment from governmentpolicy, which undoubtedly help to enhance competitiveness of the enterprise.

Therefore,it has become clear that there is a need to become more aware of the importanceof CSR and its impact on company competitiveness in today’s highly competitive market.Afterthis essay, we can see these three concepts are clearly and closely relatedamong themas markets are becoming more globalized day over day.


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