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Strategies in Innovation


The main purpose of innovations is to explore a variety of scientific and technical ideas in order to achieve their advanced objectives. Based on these ideas, technical solutions are developed and adopted. Innovation strategies are an integral part of an overall corporate strategy. They represent a set of rules and regulations that determine the system of selection procedure of change and innovation, both in the technology and in the management of technology. Usually, companies do not adhere to any particular strategies in its pure form. By its origin, innovations can be basic and improved ideas, as well as solutions, and projects. Thus, essential innovations become the basis for a new generation of technologies that have no analogs in the domestic and international practices. Improving innovations implement small and medium-sized improved technologies of manufacturing or specifications of the already known products. The choice of priorities and preferences are mostly associated with external and internal factors and specific projects. This paper aims to observe the innovative theories and models.

The Offensive Strategy

The offensive strategy is characterized by high risk and high return on investment. It requires highly qualified personnel, the ability to see new market opportunities and to quickly translate them into products. The literature reveals that for its implementation, it is important to focus on the research, in conjunction with the use of new technologies. As a general rule, market leaders in competitive industries choose the offensive strategy, where their leading position may be undermined, as a result of competitors, introducing more advanced strategies in science and technology. Sometimes, small enterprises are adherent to this strategy when their survival and growth are directly dependent on the implementation of the project. According to Lynn, the main condition of the offensive strategy is a technological breakthrough and quick response to market the changes due to existing unique resources and flexible organizational structures.



One of the most productive offensive strategies is an offer of the goods of the same quality, but at a lower price. Other variants of offensive strategies involve the use of a breakthrough in technology, giving the product new consumer properties, advertising campaign with the elements of anti-advertisement, expanding the range of goods to create analogues of each competitor’s product, the establishment of customer service system, and so on. Oftentimes, companies try to win in the market by taking advantages of the weaknesses of competitors, using different variants of this strategy. These variants include the involvement of consumers of those competitors, whose products are not characterized by high quality; organization of special sales per customer, as competitors that do not provide quality services; the attack on the competitors with a weak trademark; and the activation in the geographical areas, where the competitor market share is small or there is no competitive advantage among others.

The Strategy of Comparative Advantages

The strategy of comparative advantages is based on product manufacturing, combining the properties of several products without compromising their basic characteristics. The use of this strategy is usually utilized in the traditional employment market, in order to find a niche that is still not occupied. For its implementation, it requires active research and development, as well as a high level of technology. As a rule, this strategy is used to provide advantages over competition in the long term. Inside and outside of the industry, competitors can peacefully exist or can use the rough means of survival. According to this theory, people should take only those tasks that they can manage the best, otherwise, there is no sense to do it. Of the greatest importance is not a complete ability to create products and services, but the ability to produce the product or the service that is relative to one’s ability to produce all other goods and services.


The production of mobile phones with built-in cameras has provided advantages over others. The strategy of comparative advantage is the basis of free trade. Instead of the production by each country, all that is necessary to its people, it can specialize in those goods and services that it can obtain relatively better. Thus, the specialization of a country depends on many factors. For instance, scarce products may be produced on its territory, such as oil in Saudi Arabia, or in China, people are ready to work for low salary because of their ever-growing population.

Market Leader Strategy

Market leader exists in every industry, business, and country. According to Lynn, being a market leader is a profitable but rather difficult task because there are always businesses that try to move the leader with its products or copy his or her strategy. In order to retain the championship, the market leader may use three main types of marketing strategies, which are the expansion of market capacity, the protection of products, and the increase of market shares. This marketing strategy can be realized in three ways, which are as follows; firstly, it is a way of searching for new customers, based on the assumption that every product has its potential customers who are not aware of its existence. Secondly, it involves a search for new needs, identifying new areas and methods of application of goods and services. Thirdly, it is an increase in the volume of consumption of the goods, which can be realized through active advertising activities.


There are world leaders, e.g. companies that have achieved a leading position in international markets, such as Coca-Cola, Procter & Gamble, Microsoft, and others. Thus, Coca-Cola has always been a memorable advertising that is relevant and understandable for several generations of consumers. The company makes extensive use of modern tools of sales promotion, in particular, the social networks. A recent, successful funny video “Happiness Machine” was met with particular delight by users of social networks all around the world.

The Stability Strategy

The stability strategy is used when organizations try to obtain its position and focus on particular changes of one or two business operations related to technology alternatives or customer functions. As a rule, this strategy is adapted by the enterprises that are at risk in unfavorable market conditions. Sometimes, the companies that are reluctant to any changes chose the stability strategy for their safety. The common types of this strategy include (a) profit strategy, (b) no-change strategy, and (c) pause/proceed with caution strategy. The stability strategy is directed to the adaption of the principle of continuity in the personnel management system, which must be organically linked to the implementation of the principle of stability. Admittedly, a stability of the personnel is really necessary, since business operations build confidence, allowing employees to explore in detail the trusted area of work, gain experience, and realize their potential.


A concrete expression of this strategy may be the efforts of the company to avoid governmental control or penalties for monopolization. Furthermore, the stability strategy is formulated in an environment, where growth strategies are unacceptable because of external circumstances, e. g. during a recession or an increase in intra-industry competition, etc. Other factors may include the need for stabilization due to the expansion of the problem of loss of control and monitoring of the activities of the firm.

The Protection Strategy

The protection strategy involves high risk and it is suitable for companies that can make profits in a competitive environment. To do this, it is important to win the market shares and to maintain profit margins through lower production costs. As international experience shows, success, in this case, expects those firms that have a strong position in the production and marketing. At the same time, it is necessary to maintain the sufficient scientific and technical capacity to respond rapidly to the innovations introduced by competitor. The very essence of the protection strategy is defined by information security of an organization. Consequently, managers should search for the most appropriate compromise between the needs of protection and the necessary resources for this protection. The strategy is directed at keeping the competitive position of firms in the existing markets.


IBM, using a defensive strategy, has surpassed in the production of computer pioneer firm Sperry Rand. In turn, many computer companies have purchased a license to IBM and, perfecting its host computer and using the protection strategy. As a result, they flood the market with their products. This strategy is adopted by companies that avoid excessive risk and seek to move a step behind “pioneers” and introduce innovations, just in case they are promising.


Innovative strategies help companies to succeed in the market. Changing customers’ requirements for the quality of goods and services, increasing product variety, intense competition, and other factors encourage managers to choose effective strategies for innovation. Their selection depends on the market environment, the stability of a firm and its size. Basically, companies do not adhere to any strategy in its pure form, rather they are flexible to changes. Innovative strategies determine the system of selection procedure of changing and innovation, both in technology and in the management of technology. They help managers to implement new ideas and technology in their business process.

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