Internal And External Factors Analysis

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This paper will analyze both internal and external factors related to designing innovated strategies in today’s industries. The continuous changing marketplace in the business world imposes great challenges for the company to maintain stability, productivity and profitability in the industry. In order to keep track on the competitive environment, every company should develop innovation to acquire competitive advantage. However, acquiring just a competitive advantage will only be for the meantime due to the fast development of technology, total modernization of the market and rapid changes of customer preferences. In addition, this paper will describe how these factors relate to one another and to the overall innovation process. Therefore, the marketplace has challenges for any type of organization that needs to maintain profitability, stability, and productivity.

Designing Innovative Strategies, Internal and External Factors
As a result, innovation must be developed in all industries for the companies to follow of the competitive environment. Innovators shall foresee these factors to combat with its competitors for it to be successful, making innovation an essential factor for company growth. Innovations do vary in many aspects. It may take the risk of combining different types of innovation. Determining businesses whether they are may result to hiding their significant distinctions. The most important categorizations one may consider among the many developed are a classification according to innovation type, the innovation degree and course of sustainability (Zakić, Jovanović, & Stamatović, 2008).

Internal and External Factor Relationships
With the tight competition in the business industry, each company gra...

... middle of paper ... and leadership innovation. This is so recommended considering how the global economic marketplace dances to the tune of tight competition. The innovation must be part of the business’s system to prevent unstable progress and share losses. To counter the ever-changing marketplace and customer demand, change and innovation must remain constant (Barsh, Capozzi, & Davidson, 2008).

The concept of innovation is nothing new to the business world. It has been in the system for decades. However, today, it has become a prerequisite to business growth and prosperity.
While in the past a company dares to innovate just to make an edge to the industry, nowadays, it became an essential factor in business design for the company to survive and profit. The company shall implement, maintain innovation, and make an environment that encourages innovation. (Jameson, 2012).

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