Innovation Strategies
Firms utilize innovative strategies to gain a competitive edge in their industry. An innovation
strategy is a detailed plan on how to use innovation to improve performance and create value for
products or services provided by the firm to customers (Elkins, 2021). The strategy is closely
linked with the firm's vision and goals and formulated in a way to reach the target market and
gain new revenue methods.
Commonly innovation can be classified into four as incremental, disruptive, architectural, and
radical innovation. Incremental innovation is the process of improving an existing product or
service gradually to add value (Kennedy, 2020). Architectural innovation is defined as the
process of creating new markets or customers using the existing technology (Elkins, 2021). By
incorporating different existing technologies into products a firm can attract new customers and
open up new markets.
Radical innovation introduces new technology to implement new products or services to attract
new customers and gain new markets (Kennedy, 2020). This will require significant investment
in R&D and may not be positively received by customers. However, it has the potential to shake
the market and bring the firm to market dominance. The firm can then continue to improve on
this innovation incrementally to maintain its competitive edge.
Disruptive innovation is defined as an innovation that develops and allows the firm to gain a new
market or customers by creating a new or modified product or service (Kennedy, 2020). It may
not be revolutionary like radical innovation but it is composed of small innovative solutions that
combined create significant value. This type of innovation can help firms gain new market and
push existing firms or products out of the market or forces them to adapt.
One of the most known examples of disruptive innovation is TikTok. TikTok was created by its
parent company ByteDance in September 2016 and launched for iOS and Android operating
systems in 2017 (Kelly, 2019). ByteDance acquired the popular video app Musical.ly in
November 2017 and merged it with TikTok in august, 2018 (Influencer Marketing Hub, 2021).
This created one of the most successful video-sharing social media apps that disrupted the
mobile marketing landscape.
Firms utilize innovative strategies to gain a competitive edge in their industry. An innovation
strategy is a detailed plan on how to use innovation to improve performance and create value for
products or services provided by the firm to customers (Elkins, 2021). The strategy is closely
linked with the firm's vision and goals and formulated in a way to reach the target market and
gain new revenue methods.
Commonly innovation can be classified into four as incremental, disruptive, architectural, and
radical innovation. Incremental innovation is the process of improving an existing product or
service gradually to add value (Kennedy, 2020). Architectural innovation is defined as the
process of creating new markets or customers using the existing technology (Elkins, 2021). By
incorporating different existing technologies into products a firm can attract new customers and
open up new markets.
Radical innovation introduces new technology to implement new products or services to attract
new customers and gain new markets (Kennedy, 2020). This will require significant investment
in R&D and may not be positively received by customers. However, it has the potential to shake
the market and bring the firm to market dominance. The firm can then continue to improve on
this innovation incrementally to maintain its competitive edge.
Disruptive innovation is defined as an innovation that develops and allows the firm to gain a new
market or customers by creating a new or modified product or service (Kennedy, 2020). It may
not be revolutionary like radical innovation but it is composed of small innovative solutions that
combined create significant value. This type of innovation can help firms gain new market and
push existing firms or products out of the market or forces them to adapt.
One of the most known examples of disruptive innovation is TikTok. TikTok was created by its
parent company ByteDance in September 2016 and launched for iOS and Android operating
systems in 2017 (Kelly, 2019). ByteDance acquired the popular video app Musical.ly in
November 2017 and merged it with TikTok in august, 2018 (Influencer Marketing Hub, 2021).
This created one of the most successful video-sharing social media apps that disrupted the
mobile marketing landscape.
