How important is innovation in obtaining sustainable performance?

Résumé du document

Economic globalization has promoted the increase of goods and services in the different parts of the world. These previous regions, which were unrelated from one another, are now linked thanks to the different companies that have entered. Today, companies from North America may be competing with companies from the Pacific in a certain market in a new country. The latter phenomenon has increased the world's competitiveness.

Technological advances can improve the production of a certain product, decrease its cost of production or even create new types of products. Consequently new markets have emerged. New information systems have helped increase companies' efficiency supply management. Transportation improvements have decreased the time needed and cost for transporting a certain good to another location. Political changes or events may change dramatically the economic situation of the country.

Extraits

[...] Marketing innovations brings a change in the product design. An example of a marketing innovation could be a newly designed line of products of a certain company. These marketing innovations goals could be to attract a whole new market segment, for instance, a new flavor of a certain food that would attract children etc. Furthermore, in the past the soda drink giant Coca Cola Company redesigned its bottle shape resulting a new unique bottle form. Today, the company believes that this new bottle is more appealing and explains some of its global success. [...]

[...] In some cases, companies who know that they will not be able to protect their innovation will then hesitate to do so. Thus poses the question: how to protect these innovations? There are many legal methods of protection such as patents, trademarks, copyrights and so on. There are other unofficial methods of protection such as mutual secrecy agreements between 2 different parties. CONCLUSION The OECD showed the different types of innovation that a company could do in order to reach its objective. The term innovation is very close to the word change. [...]

[...] The second types of factors are production and delivery factors. As its name type indicates, we can infer that these reasons influence the process and organizational innovations. For example, if a company had wanted to improve the quality of their goods and services, it will have to innovate in 3 different domains. The first one would be to do a product innovation, because it has to enhance the performance of the good serviced. In addition to that, it will have to improve by innovating its process and its organization. [...]

[...] New pricing strategies are an important factor when companies want to have a relatively high market share. For instance, companies can opt for a penetration price strategy that involves a low price as a starting price in order to gain a lot of market share, and once they have gained enough market share, the company will then raise their prices to the competitive price level. And other strategies may involve skimming price strategies, premium pricing and so on. - Organization innovation Finally, the last innovation type is the organization innovation. [...]

[...] The report speaks of the impacts of process innovation on costs and employment. Indeed as previously stated in the paper, a process innovation will have an effect, whether it is positive or negative, on costs and employment. In addition to turnover, we could also observe the company's competitors, if their results are decreasing due to the increasing ferocity of competition, we could say that the innovation has had something to do with it. - Turkish Study 4 different Turkish economists, Gurhan Gunday, Gunduz Ulusoy, Kemal Kilic, and Lutfihak Alpkan, did a research on the relationships between the different types of innovation and its effects in the Turkish manufacturing industry. [...]