Most frequent questions for big companies, nowadays, undoubtedly is ‘How can companies sustain a long-run competitive advantage, especially in the face of increasing competition?’ According to the case, the answer, being forming the foundation of a resilient organization, depends on the innovation process and how companies manage.
To define innovation, it is a form of new business and new technology. As on the case, there are three forms of innovators; reactive, proactive, and anticipatory innovators. As expected, resilient organizations emerge from anticipatory innovators by creating an innovation orientation within the firm’s culture. In other words, the essence of innovation lies in supporting continuous innovation as in cultural level. To achieve this, one should begin from viewing organization as organisms. In other words, how well they adjust to the environment determines whether they survive or perish and how well they prosper if they survive, just as well as organisms. When you begin to see organization as an organism, you can think of innovations as genetic mutations that spring from the organization. But the difference is that the genetic mutations are intended.
Innovation, the term itself has been used extremely often in business society, however, few of multinational companies are practicing the real innovation. For example, Sony lacked the ‘renewal of competitive advantages which let Apple to take over most of customers that was loyal to Sony. Sony lacked the concept that captures the change of environment, thereby lacking innovation, thus be unprepared for its competitors. Why did Sony fail to achieve innovation? Were they unaware of rapidly changing environment? What Sony was unaware was its culture. Sony’s culture didn’t provide the environment for innovation to exist. Corporate culture admittedly creates the context where innovation flourishes or fails.
Traditionally, the sources of competitive advantages were capacities such as...
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