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Rivalry and Innovation for Company Performance Research Paper


Introduction

One can hardly imagine the modern world without digital devices. The technological advances in the sphere of science have given rise to some innovative approaches which are used in all areas of human activity. The rapid spread of technologies is also preconditioned by their enhanced efficiency and ability to guarantee improved outcomes. The combination of these factors is fundamental for the modern world, which has become characterized by increased rivalry.

The fact is that the sophistication of contemporary society results in a high level of competition as well as in the need for a significant competitive advantage to preserve a leading position. Due to their unique nature, technologies could help to accomplish this task and guarantee positive outcomes. For this reason, the modern revitalization of the economy should be associated with the current technological advancements. The majority of innovations are used to improve the functioning of a company and help it surpass leading competitors. In such a way, rivalry becomes one of the factors that drive technologies in modern capitalist economies.

Background

Traditionally, innovation has been one of the primary drivers of change, introducing new approaches that significantly increased the efficiency of various processes and ensured enhanced outcomes. However, the modern situation remains unique because of several factors. First, the scale of alterations is significant, especially about the revolution in the sphere of business (Hirst, 2009: 46).

Correctly realizing the high potential of technologies and their positive impact on incomes, companies promote their further development to benefit from the additional use of new methods. Second, the majority of modern states economies could be characterized as capitalist ones, which means that rivalry becomes one of the factors that stimulate their growth (Freeman, 2009: 127). Third, the competitive advantage is fundamental regarding the specifics of the modern global market and numerous companies that try to take it. Under these conditions, the extensive use of innovations remains the only chance to compete with other actors.

Rivalry

About the capitalist model, the rivalry has always been one of the leading factors which have impacted the business world and preconditioned its further evolution. It is evident that to remain popular with the target audience, a company should be able to satisfy customers demands. However, the evolution of society is connected to the alteration of peoples mentalities and the appearance of diverse needs.

This is why the demand for a particular product is one of the most changeable factors that should be considered by organizations or businessmen (Freeman, 2009: 131). A company that can satisfy the existing demand and meets new requirements is more likely to win the rivalry and guarantee its further rise than other ones. As for modern society, innovativeness is one of the aspects appraised by customers. They would prefer to buy goods suggested by the brand that boasts its technological advance. For this reason, rivalry becomes closely connected with innovations in the modern business world.

Competitive Advantage

The given bond could be evidenced by the fact that the majority of corporations consider the use of technologies as the main guaranty of their success. As stated above, digital devices have introduced numerous positive changes in the work process. They increase efficiency, decrease the amount of time needed to perform a specific action, and guarantee better outcomes. All these factors could be considered crucial elements of a competitive advantage which is necessary to preserve the leading position of the company and create a basis for further growth. In such a way, there is a definite correlation between the level of rivalry in the sphere and the scale of innovations used by businesses. The most potent agents become interested in the further implementation of technologies as they become the key to further development. Rivalry stimulates the development of digital devices and suggests new ways for their application in capitalist economies.

Increased Efficiency of Processes

Increased efficiency of the processes that are central to companies is another factor that should be suggested to prove that rivalry plays a significant role in technological advances. Regarding the essentials of the capitalist economy, the surplus profit is one of the most desirable goals of any company as it guarantees its further rise and improved outcomes (Freeman, 2009: 135). Additionally, it results in a stable level of income.

For this reason, CEOs become interested in further cultivation of the innovative character of their companies and the broad use of technology to attain better showings. The increased efficiency of processes also means that the same efforts will contribute to better results with the assumption that financing remains unchanged. It is one of the primary purposes of any company that functions in terms of a capitalist economy. In such a way, the need for improved outcomes which comes from the high level of rivalry drives innovations as the best way to increase efficiency and attain success.

Improved Outcomes

The increased efficiency of essential processes goes hand in hand with improved outcomes. It refers not only to the number of final products but also their quality which is crucial for the modern business society. The fact is that today customers have strict requirements for goods they intend to buy. The wide variety of suggested commodities and market overstocking provide them with an opportunity to choose a product that will be able to satisfy all their demands (Freeman, 2009: 133). Under these conditions, the quality of the final product becomes a top priority. To remain competitive, companies should satisfy diverse consumer demands.

This is why technologies have become the most appropriate solution to this problem. The accuracy of the manufacturing process increases significantly if high-quality equipment is used. Additionally, there are several industries where technology is fundamental for further evolution. In this regard, the improved outcomes and quality of products gained due to technological advances help to acquire a competitive advantage.

Decreased Mistake Rate

When discussing the sphere of high technologies, the increased importance of accuracy and the negative effect mistakes might have on final results should be mentioned. If a company fails to produce goods that meet the suggested requirements, its image suffers and rivals could take the market. However, the human factor will always remain one of the main sources of mistakes. Workers might experience a lack of attention, decreased motivation, fatigue, etc.

Their physical and mental state impacts the efficiency and results of their work. For this reason, attempts to minimize the negative impact of the human factor are one of the main tasks specific to the modern business world (Hirst, 2009: 56). The use of technology could help to solve this problem. The mistake rate decreases significantly if advanced technologies are used to perform tasks that could be too complex for employees. Companies that face rivalry in the sphere of high technologies are interested in the further development of devices to acquire a competitive advantage and continue their progress.

Workers Satisfaction

Finally, CEOs could be driven to implement technologies to preserve a high level of motivation among workers and engage them in innovative activities that will help to shift priorities from old to new approaches and guarantee improved outcomes. Employees motivation is one of the main factors that help to increase a companys competitiveness and to preserve its competitive status. In such a way, using technologies as a powerful tool to create an innovative environment, companies could also contribute to improved outcomes and a high level of satisfaction among workers.

Conclusion

Altogether, the rivalry remains one of the greatest moving forces of the modern world. The appearance of new ways to perform basic activities and increase their efficiency results in the revitalization of the capitalist economy and its rise. At the same time, it necessitates increased rivalry as numerous actors engage in business activity due to its promising character and the benefits which could be obtained if a new venture becomes successful.

This is why the high level of rivalry is one of the main characteristics of current society and one of the factors that drive innovations. The use of advanced technologies could help to improve outcomes, increase worker and customer satisfaction, and decrease the probability of a mistake. For this reason, companies become interested in the cultivation of innovations to acquire a competitive advantage and preserve their leading status.

Bibliography

Freeman, Cristopher (2009): Schumpeters Business Cycles and Techno-Economic Paradigms. In Wolfgang Drechsler, Rainer Kattel, and Erik Reinert (eds.). Techno-Economic Paradigms: Essays in Honour of Carlota Perez. London: Anthem Press, pp. 124-144.

Hirst, Paul (2009): Globalization and the History of the International Economy. In Paul Hirst, Grahame Thompson, and Simon Bromley (eds.). Globalization in Question. Cambridge: Polity, pp. 24-67.

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IvyPanda. (2020, November 10). Rivalry and Innovation for Company Performance. Retrieved from https://ivypanda.com/essays/rivalry-and-innovation-for-company-performance/

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IvyPanda. "Rivalry and Innovation for Company Performance." November 10, 2020. https://ivypanda.com/essays/rivalry-and-innovation-for-company-performance/.

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IvyPanda. 2020. "Rivalry and Innovation for Company Performance." November 10, 2020. https://ivypanda.com/essays/rivalry-and-innovation-for-company-performance/.

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IvyPanda. (2020) 'Rivalry and Innovation for Company Performance'. 10 November.

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