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According to Ghana (2014) Apple’s phone and PAD have become evolutionary mobile products that changed the way people communicate with one another, access information, entertainment and services. Since then, Smartness and tablets cooker design have become ubiquitous. It does not mean that mobile devices have become boring, but it’s a controversial issue. As there is a question what kind of devices can be invented in the future and how it will influence different types of businesses. Nonetheless, there are other gadgets around us that can be used for interaction such as radio and Internet.
This essay will discuss the role of innovation for entrepreneurial start-up and/ r firm growth. In order to develop the topic, the essay will be divided into four parts. In the first part will be written how the innovation leads to the growth of several companies. After that some theory about the innovation cycle will be explained. In the third part the Potters model will be described in more details. Finally, it will be discussed how gaining competitive advantage as a start-up company can be achieved and utilized. 2.
Methodology There are different types of research method that aim can to help to write assignments and understand concepts feathery. According to Gray(2014) heretical method can provide basic theory and understand the main objective of the topic. On the other hand, contextual method has more qualities and interpretive information, because it can describe more important information and to control of data and analyses (Chambers, 1997). Theoretical method is more useful in this essay, because it can describe mare information and more detail about concept and practice of innovation. . The aims and objectives of the role of innovation for enterprises According to Has (2013) the aim and objective of the role innovation for start- up firms is innovation strategy. He argued that innovation strategy refers to the ability of the enterprise to build a surrounding that promotes the development of new ideas ad the dynamics of change with a constant competitive edge that makes it different from their competitors. He also defined a competitive edge as doing something that others cannot do either in the product in itself or the methodology.
Therefore, they can offer customers unique products or services. Innovation affects enterprises policies and the performance of the company as it uses resources and technology in different combination to create innovation strategy. On the other hand, Power (2014) holds the view that global economy and competition have made growth of start-up company more difficult to involve in the business. However, some companies such as Apple, Amazon, and Cataracts fought with competition and due to innovation they got successful brand and profit.
To get this success, owners of this companies understood the main goal and objective is process of innovation, such as find the next S-curve, lean on customers, think like a designer and how to lead that’s way. Another aim and objective the role of innovation mentioned by Blank (2010). He identified understanding constant of the innovation cycle is more important for start-up firms. He argued that all companies have a predictable life cycle of the company. They usually begin with an innovation, then to search for creating a business plan to build an environment for a company, after that to use efficient model to grow.
Over time, innovations move outside of the company such as demographic, cultural, new technologies, etc. And outperform the existing business model of the enterprise. As a result, the company is losing clients, revenues and income decline, and it eventually gets acquired or goes UT of business. However, most studies have shown that disruptive innovation, i. E. , innovation, which go after new markets, new customers, new technologies, etc. , better built outside the existing organization of large companies. This type of companies is best for finding new niches in existing markets or create entirely new markets.
Disruptive innovation in the company tries to solve simultaneously two unknowns: the customer / market is unknown, and the feature set of the product is unknown. Just as a start (Blank, 2010). According to Porter, (1990) that the main goal of the role innovation for start-up firms is competition. He said that innovation leads to competitive advantages and higher performance of firms. Because of the innovation can help small and medium-size enterprises to join export markets and to improve profit of companies. No one can deny that strategy of marketing is a key way to success of innovations.
Therefore, research of the marketing activity can help to firms to do success new products in the market (Song and Parry, 1 993; Collation and did Benefited, 1988; Schmidt, 1995). On the contrary, Hopkins and Bailey (1971) said that market analysis r research are not enough to sell a new product since the distribution or promotion of the product tend to lead to product failure. Extensive marketing efforts will lead to the success of the product (Retell, 1992). Adequate implementation of all marketing activities is a key factor determining the success of the product (Cooper and Callisthenic, 1987). Unique product is a necessary but often not sufficient condition for innovation success. Moreover, achieving competitive advantage usually also requires that the product is brought to the attention and to be available for he respective target customers. According to Crawford, (1991) if firms do not support marketing, it will be one of the key factors of product failure because firms should discover adequate performance of all marketing activities to do success new product. After that, marketing ability leads to sustained competitive advantage of firms.
Consequently in this part mentioned the main aims and objective the role of innovation for start-up firms from different views. Of course, if company accept practice of innovation, company can drive innovation and be successful in the business. However, disruptive innovation is also an essential. Another view about competitive was discussed in this part. Innovation one of the best way to improve firms profit, but to do success new product using right marketing factors also important for them to be competitive with other enterprises. 4.
Innovation dilemmas and the Innovation activities of enterprises in the 1. K According to Johansson (2006) mentioned that substantial characteristics are expected to affect the intensity and nature of innovation activities of the enterprises. Therefore, it will be discussed into four groups, namely the localization of the sector, the specific characteristics of the company, the production of knowledge and its corporate structure. The key classification is industry. Innovation intensity is different to compare industries and in the history of innovation studies it was early understood. Reviews in Patella and Apatite, 1995; Cohen, 1995). In this study, the approach is to first separate service industry production from then consider R & D intensity of the industry in organizing them into nine groups of industrial sectors. The central aspect is that in our assessment of the innovation performance of each company, the analysis must control for the industry classification. According to recent reports, another classification is specific firm characteristics. In the next empirical analysis, we will include human capital and physical like two separate measures.
Then, we discovered that R spending expenses that an enterprises invest into knowledge assets. It means that the sales volume has to be sufficiently large to enable the company to cover the fixed costs related to the acquired knowledge capital. It is possible if the firm can find their way to export markets. Moreover, as we have seen the size of the company unconnected with the market. On the other hand, Nasty¶m, ( 2006) believes that classification of knowledge production of the firm more important. We cannot deny that history Of the firms also includes knowledge production record.
Firstly, it is the R, because it has the significant effect of the firm’s participation in innovation systems. Secondly, the firm’s R persistence can reflect companies learning to carry out innovation activities. The third component is the firm’s valid patents and copyrights. In other words, it is to protect their idea and product from other competitive. While, Anural and Beverages, (2005 ) said that classification of the corporate structure should be essential for start-up firms rather than other classifications. It is the last category of firm features that will be use in the analysis.
If we compare to non-affiliated and multinational firms are different, they have wider market area. The final classification is the corporate structure. It is the last category of firm features that will be use in the analysis. If we compare to non-affiliated and multinational firms are different, they have wider market area. The Ones usually have a huge R&D staff than firms and a large ability about external knowledge flows. The multinational enterprises have chance to access their knowledge and ability to develop it, because their different international locations.
A good illustration of this that figure 2 illustrates the breakdown of activities carried out by firms from 2008 to 2010. Revised results show that a total of 37 percent of businesses were innovation active 14 in the three-year period from 2008 to 2010 international comparison data were not available at time of writing. (UK Innovation Survey (KISS), (2014) Figure 4: Percentage of firms engaged in specific innovation activities, 2008 01 0 Source: UK Innovation Survey (SKIS) As a result, industry, specific firm characteristics, knowledge production of the firm and the corporate structure and have a significant effect for enterprises.
If the enterprise uses this classification with the right way, firm profit will grow. 5. Conclusion In conclusion, it is not easy to set up business and to achieve their goal. Each new firm wants to get profit and to be successful. This essay has given an overview of the main factors that the strategy of innovation in firms, such as technology strategy, product innovation and management innovation in many. Moreover, this essay has also given the innovation activities of enterprises in the I-J and some dates.
Finally, in this essay was mentioned importance of innovation and competitive advantage in firm. All of these factors have a direct effect on a company in their business way and the market. Of course companies should understand that If the Director does not make innovation a priority, it’s not going to happen. Innovation requires risk and failure is impossible without Executive air cover. The company’s best growth creates a culture of innovation. Howard Schultz decided to Cataracts cost its way. He flew in every store Manager If the Director does not make innovation a priority,it’s not going to happen.