Differentiation Innovation
Innovation based on differentiation involves the products and services that outweigh other services and in the market. The products are established in unique forms in the market and the innovation strategy eliminates or ensures that other market players are outperformed in the market. The article by Hoberg & Phillips suggests that differentiation innovation places a firm different space; thus, making the firm more competitively advantaged (Hoberg & Phillips, 2016). The work of Hoberg & Phillips illustrates that different innovations are initiated in a firm but they become less effective (Hoberg & Phillips, 2016). In fact, such innovation ensures that the firms involved in the most significant and demanded products only. For instance, Amazon.com has applied the innovation in the market and as a result, the firm has faced greater influence from the innovation. According to Geissdoerfer, Vladimirova, & Evans (2018), the firm has faced a positive impact which makes it a winner in the global market as far as E-commerce is concerned.
Differentiation innovation in a business secures a business or the operation of the firm in a competitive advantage; thus, limiting the chances of losing in the market. For instance, since the initiation of mechanisms of differentiation, the Amazon company has secured the most vital strategy of the blue ocean. The blue ocean strategy guarantees a free space where there is no competition. In this case, the firm focused on different services that aim at the retail delivery of products on the internet. More importantly, the services are quicker and more efficient as compare to other firms in the industry of E-commerce (Geissdoerfer, Vladimirova, & Evans, 2018). Therefore, Amazon differentiated these services by even taking care of prices; thus, promises the most affordable prices with quality service and products. It would be accurate to say that innovation through differentiation has significantly impacted on the firm in the global market.
References
Geissdoerfer, M., Vladimirova, D., & Evans, S. (2018). Sustainable business model innovation: A review. Journal of cleaner production, 198, 401-416.
Hoberg, G., & Phillips, G. (2016). Text-based network industries and endogenous product differentiation. Journal of Political Economy, 124(5), 1423-1465.