Product Innovation In The Electronics Industry

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Introduction

While our world has always experienced change, the rate of change is speeding up (Becky, 2010). The rapid changes in the world today have had a tremendous impact on human behaviour, market trends and the economy. Under the general trend of increasing global economic integration, informationisation and networking, the rapid advances in science and technology have been the central driving force behind economic growth and development. It is important for every business to be able to identify its strengths and weaknesses and to overcome any shortcomings through reforms and innovations while also developing its own competitive advantages. Innovation is crucial to the electronics industry because if an electronics company can move to
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Product innovation can drive profitability and growth, and help companies succeed even in difficult economic times. Many firms adapt and even transform through the creation of new products. What has become apparent in recent years is that the ability to adapt quickly is a critical factor for entry into the market (Eisenhardt and Tabrizi, 1995). This is why more and more companies view product innovation as critical to the long-term success of the business. In the electronics industry, products are updated very quickly, therefore, a company must continuously innovate and evolve with the times to remain an industry leader in electronics. However, in recent years, some companies such as Nokia and Motorola who were slow to innovate and did not to raise their products to adapt to the changing environment were almost eliminated from the market. However, as new technologies continue to enter the market, the pace of product updates is too fast in this industry. Companies in the electronics industry should focus on product innovation to stay competitive and gain market advantage. For instance, when Samsung will launch a new product this month, its main competitor, Apple will quickly launch a new product soon after to compete, which reflects its competitiveness in the industry. Therefore, product innovation alone is not enough for an industry, and service innovation is…show more content…
Collecting customer feedback allows businesses to better understand the needs of the customer and the real demand for the product, and this information can then be used in product innovation. Continual product optimisation brings results and sometimes companies use co-production in the optimisation process. One example is Apple’s app store, which is one of its service innovations. According to Apple’s Annual Report (2015), the App Store generated net sales growth of 10% compared to 2014, at 19,909 (dollars in millions). The net sales of Apple products were 25,471 (dollars in millions) in 2015, which was quite similar to the net sales of services. Therefore, service innovation is very important for an industry to improve its

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