Chapter 8. Innovation Strategies
This chapter focuses on the growth dimension, the vertical axis of the strategy-value model. It analyzes innovation strategies oriented to growth. In the previous chapters the competitive strategies analyzed whether the firm is viable in terms of profitability. This chapter focuses on the ability of the firm to grow through innovation.
It is important to clarify some ideas first. There are two main roads to growth: One is by competing aggressively and taking customers away from the competitors; we have already analyzed this aspect in previous chapters as part of the competitive strategy. A second way to grow is by innovation: new products, new customers, new markets, new technologies, more sales to the same customers, and new business, and this is the meaning we give to the word innovation in this chapter.
The atomization of strategic management that we mentioned in the first chapter is also reflected in innovation strategies, and this produces a huge confusion for the practitioners. Typically strategic management literature covers innovation randomly through several topics, each author placing it in different chapters, which is extremely chaotic: entrepreneurship, related and unrelated diversification, mergers and acquisitions, alliances and joint ventures, vertical integration, outsourcing, international strategies, portfolio management, growth strategies, ...
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