"Radical innovation is innovation that has the power to change customer expectations, alter industry economics and redefine the basis for competitive advantage." –
Gary Hamel, in 'Leading the Revolution'
1. Introduction
Companies have always tried to create and capitalize on competitive advantages, ensuring profitability and long term survival. Due to the increasing competition in most markets, mainly caused by globalization, liberalisation and better information of the customers, the need to gain advantages in competition is now more essential than ever.
Relevant to the quotation above, this essay discusses the proposition of GARY HAMEL that innovation is the key to achieve this goal. Additionally the links between innovation and competitive advantage are examined.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- THEORETICAL APPROACH
- Terms and Definitions
- Statement analysis
- PRACTICAL EVIDENCE
- Positive Examples
- Negative Examples
- OWN THOUGHTS AND CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the proposition by Gary Hamel that innovation is key to achieving competitive advantage, focusing on the relationship between radical innovation and competitive advantage.
- The definition and impact of innovation, particularly radical innovation
- The concept of competitive advantage and its different forms
- The potential for innovation to create competitive advantage
- The risks and challenges associated with innovation as a driver of competitive advantage
- Examples of both successful and unsuccessful innovation-driven competitive advantage
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of competitive advantage and its growing importance in a globalized market. It highlights Gary Hamel's proposition that innovation is the key to achieving competitive advantage, setting the stage for the essay's exploration of this relationship.
- Theoretical Approach: This chapter defines key terms, including innovation and competitive advantage, exploring their nuances and highlighting the concept of "radical" innovation as proposed by Hamel. It also analyzes the link between radical innovation and the potential for competitive advantage.
- Practical Evidence: This chapter examines real-world examples of companies that have achieved competitive advantage through innovation, highlighting NTT's "I-Mode" and Dell's direct-to-consumer model. It also discusses examples of companies that have not been as successful in capitalizing on their innovations, such as Apple and Motorola.
Schlüsselwörter (Keywords)
This essay focuses on the concepts of innovation, particularly radical innovation, competitive advantage, and the complex relationship between these two. It delves into the potential for innovation to create a lasting competitive edge, examining both the benefits and risks of pioneering new approaches. The essay also explores various examples from diverse industries to illustrate the potential impact of innovation on market dominance and business success.
- Quote paper
- Jörg-Stefan Schöttler (Author), 2003, Influence of innovation on competitive advantage, Munich, GRIN Verlag, https://www.grin.com/document/21209
