Innovation and Competitive Advantage Changing Environments
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.
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.
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