Innovation and Porter’s Five Forces Theory

Innovation is the process of making advances by inventing something new. It is the introduction of a new idea, method or device. In other words, innovation is a change that improves an already existing product or idea. Besides, successful usage of new ideas can be called an innovation. A company cannot exist and develop without innovation technologies in the modern competitive world. It must innovate in order to survive. Innovation is the major factor of company’s success and growth. Innovation‘is generally understood as the introduction of a new thing or method. Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services’ (Luecke and Katz 2003, p. 2). Innovation includes technical innovation (products and services) and social innovation (organizations and markets). The most successful innovation strategies are made up of both elements.

Innovation goes along with creative though these are two different notions. Innovation means action on the basis of creative ideas. All innovation begins with creative ideas. We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second. Several years ago the innovation became an urgent necessity for companies. Since that time most companies focus their attention on this issue. In a modern world companies must continue the innovative process for keeping the brand popularity and meeting the customers’ needs via strategic planning and development of products.

A successful company should manage its brand effectiveness and popularity via developing the innovative strategies. Innovation connects the possibilities of a company with unmet customers’ needs. A company must strategically plan in what way to keep and enlarge brand effectiveness. Product and service innovation are used for achieving the result. For instance, the Apple Corporation has an effective brand popular as a customer-focused corporation. Every company provides some kind of services. These services must be improved via innovation strategies to make the client come back again and again. Innovation is the mainspring of the company’s growth and prosperity. It consists of product, service and brand innovation.