Innovation improves firms competition ancompetitive

  • No School
  • AA 1
  • 21

This preview shows page 15 - 18 out of 21 pages.

new customers and retaining older customers.. Innovation improves firm’s competition and competitive advantage by enabling them to involve and motivate people to take advantage of internal crowd, enable people to create, invent then innovate new products, services and processes. H&M should be in position to adopt new ideas, new operating practices, new technology and creation of new skills. H&M exist in dynamic market that has changing demographic, technology as well as taste and preferences. Therefore it needs to be innovative enough to ensure that it remain ahead of other firms in the market. Innovation ability is very
Image of page 15
Global Strategy and Foresight 16 essential factor for increasing competitiveness in this era where competition is high. A firm should come up with innovative strategies that will help the firm to have a unique advantage. Internationalization is the movement of firm’s operations beyond its home country; it is a process through which a firm increases its involvement in complex operations outside borders of its original country. “The internationalization of firms is a fundamental key for improving the competitiveness of firms and to decrease the degree of vulnerability to the changes in demand conditions and to the entry of new competitors. It gives the company a competitive ascendancy, a competitive advantage[ CITATION Hel15 \l 1033 ]. A “competitive advantage is an advantage gained over competitors by offering customers greater value, either through prices or by providing additional benefits and service that justify similar, or possibly higher, prices The Theories of International trade, of direct investment and The Theories of firm’s internationalization are key to understanding the rational of internationalization and how it can be an advantage to firms[ CITATION Wie12 \l 1033 ]. One of the common set of strategies used to study competitive advantage is the Potter Generic strategy. But the entire Market based view, the Resource based view, the Knowledge base view, the Capacity based and the Relational views are important in the study of competitive advantage. The best view of these theories will be one that embraces all of them. None of the Market Based View, the Resource Based View, the relational view or their sub-categories has been classified as best The reasons why companies want to move to other countries is enjoy the new opportunities awaiting them there. They want to increase sales, improve profits, economies of scale, exclusivity, education, increased innovation, short-term and long-term security, competitive strike and government incentives (Biggs, 2013). These may be factors that help in achieving competitive advantage but what determines the competitive advantage is the
Image of page 16
Global Strategy and Foresight 17 comparison with the competitor. Competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost or deliver benefits that go over those of competing products). Internationalization affects the firm’s competitiveness not only but
Image of page 17
Image of page 18

You've reached the end of your free preview.

Want to read all 21 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors