Monday, February 14, 2011

Innovation, Competitive Advantage and Sustainability

In our second meeting, we learned about product innovation. It is the invention, creation and introduction of a brand new good or service to the market. Yes, as an entrepreneur we have to be smart in analyzing the market and innovating a product to create a new market for it. In this phase, creativity is tested so that the product that we come up with can be well received by the market and bring us profit. That's the main idea behind product innovation. Innovation is a very important process because we don't want to be just a copycat of other people's product and earn little revenue before the product enters its decline stage but creating a brand image that will benefit the whole company.

The thing about product innovation is, the product should have a competitive advantage compared to other products in the market. Competitive advantage itself is a special factor that the product has over any other products, can be in terms of quality, function and any other factors. For a new innovated product to be able to strive in the market and win over its competitors, it has to have competitive advantage.

We all know that a business is a going concern, it means it will continue to operate to an indefinite future. Indeed, in operating a business we have to remember that it has to be sustainable. Competitors will come up copying and bringing up new ideas, that is why we have to continue to innovate to retain our sustainability.

Even for the small-scale businesses that we're going to do this semester, we have to be innovative in order to gain our own market and lesser competition. This may involve high risk, but with a thorough analysis and research, the right strategy can be formed to achieve our goal.

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