The Importance of Innovation and Strategy

Strategy is a mean of positioning products and services and this is very useful to most companies as it make them more organized and competitive. Not only has it given the company a short shrift to what the company knows. If we are going to define now what strategy means, it is all about staking out and defending the company for a unique competitive position. And with regards to today’s economic status, companies have to do something new; they have to constantly reinvent who they are and what they have in both small and great ways. One significant way to reach this is through innovation. An effective strategy now is made up of three closely interrelated subjects: product/market, knowledge of innovation and innovation and strategy.

As the competitive market economy changes, organizations need to constantly analyze and reassess their alignment among these important positions. If one aspect goes down, everything will be affected. Competition does not only focus on producing new products or services but also on what the company knows about innovation and the ways for them to innovate. There must be a specific strategy for a specific kind of innovation.

Innovation and strategy are connected by complex and multi-dimensional relationships. The pressure and demands for any company innovation are the increasing components of a competitive strategy. Strategy makes way for a successful innovation. The lesser the strategy can be imitated the more authentic and durable the innovation is. Some companies only imitate other company’s strategies to compete in the global market, but this is not right. Each company should dare to be different. Furthermore, if innovation outcomes are difficult to imitate, it sustains a competitive advantage. Others suggest that the managerial innovations like the strategic management of human resources or information based system provide sturdier routes for competitive positioning.

The concept of strategic innovations provides a closer look at innovation as authentic and one of a kind. To survive in the recent economic market, innovation must come along with strategy for an impressive growth. The optimal goal of innovation is the sustainable and profitable development of the company, and no matter what strategy there is to adhere to, it must have innovation as the heart.

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