Innovation as a source of competitive advantage

Abstract

Competitiveness has become the key to the survival and growth of business in the post liberalization era in India. The realization that enterprises will have to compete not only against other domestic players but also against international players has further complicated the change. Also, generic strategies such as differentiation and cost leadership have not been able to sustain a business on a long term basis unless an organization becomes is especially important when the life of a product is short and there are large structure changes taking place in the competitive environment. The paper therefore attempts to identify the type and significance of innovative strategies and discusses the strategies and processes that can be used to build innovativeness in organizations for competitive advantage.