1. Is innovation the single most important factor in getting competitive advantages? In the rapidly changing business world, it is getting more and more difficult for competitive advantage to last. In order to have lasting competitive advantage a company must continuously and consistently make and deliver products and services to satisfy customers’ needs that are always changing. Customers are also always looking or the next best product. To meet such challenges companies must be as cost efficient as possible at the same time. In other words, it must differentiate itself from competitors through continuous innovation that will improve both products, services and processes However, innovation itself is not enough as it must work hand in hand with cost-efficiency, quality and customer responsiveness. Only then can a company charge a premium price and drive up its profits. Examples: • Product innovation: Intel's invention of the microprocessor in the early 1970's would be an innovation. By being the pioneer, they obtain a first mover advantage. Through continuous R&D to produce next generation microprocessors that are faster and more powerful they secure sustainable competitive advantage. • Process & product innovation: NIKE has created an interactive website that allows them to engage with customers by allowing customers to design their own shoes and through the use of cost-efficient 3D printing can make individual moulds for personalised and customised shoes for their clients. Customers have a greater sense of involvement in the production process and all combined are willing to pay more for a very personal and satisfying purchase experience. • New Business Model (process innovation); By leveraging on e-commerce technologies with a new no-frills budget airline model and being the first to offer such a service, AirAsia enjoyed phenomenal success in Malaysia as there were no competitors domestically at that time. It has continued to lead the market regionally in Southeast Asia with its cost leadership advantage and yet without sacrificing the quality of its in-flight and ground services. Innovation can be the most important source of competitive advantage. This is because innovation can result in new products that better satisfy customer needs, can improve the quality of existing products, or can reduce the costs of making products. Innovation can allow a company to differentiate its products and charge a premium price, and/or lower its cost structure below that of its rivals. Competitors, however, can imitate successful innovations. Therefore, maintaining a competitive edge requires a continuing commitment to continuous improvements and innovation. Examples of companies that failed to innovate fast enough are NOKIA and MOTOROLA who underestimated the power of touch screen interaction in smartphone technologies. KODAK also was slow in adapting to digital camera technology and are now falling far behind its Japanese counterparts (Sony, Canon & Olympus) Please rephrase the above (own words) and provide other examples if possible (400 - 450 words) 2. Discuss the competitive (5 forces) model to global fast food industry and provide suggestions how to maintain the fast food business to remain competitive http://www.mbacrystalball.com/blog/strategy/porters-five-forces/ Please summarize the Porter’s 5 forces (above link) is a tool to determine the opportunities and threats in the industry that a company is competing in. Summarize at the end of each of the 5 forces whether there are more opportunities and threats in the near future and then summarize overall among the 5 forces. (450 words) 3. How can a company be the lowest cost producer and still have product that are values by customers? 4 factors to help build and sustain competitive advantage: 1. Superior efficiency 2. Quality 3. Innovation and 4. Customer responsiveness Please write 400 words with the above 4 factor and elaborate