value of innovation

Question 1

what are hte 3 value/benefit points

Answer 1

competitive advantage

aligned to strategic positioning

stakeholder value

Question 2

explain competitive advantage vlaue/benefit

Answer 2

an innovaitve bs likely to achieve comp adv

enabling it to maintain compettiveness or capture and increase market share

Question 3

expain aligned to strateic positionin

Answer 3

innovation liekly to be aligned to and reinforce strategic positiong
whther low cost or differtiation startegy

Question 4

explain stakeholer vlaye

Answer 4

inovation can result in greater value for stkh through greater returns for shareholders , better value for customers and improved evironmental position

Question 5

innovaitno is not without its

Answer 5

challenges

Question 6

what are the challenegs of innvoaiton

Answer 6

high cost

high risk

Question 7

pressure of short termisim can cuae

Answer 7

ceos detrring making necessary investmenet in r&d

Question 8

why should business innovate

Answer 8

Increase rev / reduce unit costs - this is hwy we innovate
Because of increasing competition in the mkt
Increasing demands for higher returns - which you can do by being more efficient and having greater revs

Question 9

what is a +Tve of innovatino

Answer 9

Improved product quality = increased ales , growth and higher turnover
Improve brand image therefore giving you bs comp adv
As bs got comp adv you can charge premium prices as youve gained a brand imahe so ped has become moreinelstic so can use price skimmin initially with new releases

Question 10

what is -ves of innovation

Answer 10

High initial costs due to r&d and mkt research
Takes time to come to fruition therefore benefits may not be realised in st
In the lt may have other costs as may need to protect ip through patents/copyright

Question 11

what are the eval poitns ofr innovaiton

Answer 11

Is finance available for you to innovate

Are management aware and and prepared to tke risks to innovate

Are staff skildlull enough to innovate, operate and understand new processes and products - if not can slow down rate of innovation and can impact after sales service/guidance with innovate products and processes

Are your rivals innovative - if yes need to be innovative to

Do consumers demand more innovative products - older ™ probably wont as still getting to grips with understanding