Thursday, May 1, 2008
Innovation Can Only Bypass Competition.
As the globalization is in full swing all business has to withstand competitions in order to retain market position by retain and gaining its market share.
Fierce competition can eat away market share even all the sales can dry up. To sustain the market share the firms should bank on contemporary technologies or try to develop new technologies.
R & D pays a significant role in technology development and in turn product and service development enhancing the PLC of the product.
North American, European, Japanese MNCs were the first to come out innovative products with cutting edge technologies.
AT&T, GE,3M,Intel, Microsoft, Apple Computers,Google,Wall Mart and many more are great examples of North American Corporations which has dominated the world market with their world class products and services.
Japanese corporations like SONY, Toyota, Honda still dominates the world market with electronics, auto, ship building with cutting edge technology spending a significant amount in R&D.
Recently the European and the Japanese joint venture Sony Ericsson innovated a mobile phones with camera features eying the global market.
The Chinese too are spending a good amount of money for R&D and for innovation. Computer hardware outsourcing and electronic toy market are examples of Chinese dominance in the world market. With Chinese SEZ in right place and low production cost and economies of scales, China has become right destination for global manufacturing hub.
What about India, Indian companies now compete against the best of world class rivals , of course, that is the reason why they are taking innovation and spending on R&D much more seriously. Many of the Indian Brands making waves in Global market are parking a sizeable amount of money in R & D.
Tata Motors, Dr Reddy, HAL, Reliance, Sun Pharma, Cipla , Infosys,M&M are some of the Indian brands making wave in the global market.
Does R&D and innovation drive profitable growth and increases profitability?
This is a very debatable question, managing Innovation requires lot of investments, many a times R&D money can go down the drain. Marketing can be an expensive proposition too. Eight out of ten products fail to click. At times it proves to be an expensive gamble.