Strategic Management

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Category: Business and Industry

Date Submitted: 11/17/2012 12:10 AM

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I. Introduction

II. Main Content

1. Radical Innovation

a. What is radical innovation?

An innovation that has the ability to change customer expectations about a product or service positively and substantially is called a radical innovation. Eventually, existing methods or technology are often replaced by them which can be termed as the commercialization of technologies and products. Radical innovation has powerful impact on two components which are the market, in the matter of providing entirely new customer benefits related to the previous generation of product in the same group; and the company, regarding to its capability to create new businesses.

It can be understand that, radical innovation is very essential to the development, wealth and success of economies. Some markets are merged, new markets are created and old ones are destroyed. Radical innovation can cause the collapse of powerful incumbents that struggle to innovate and boost minor businesses into industry leaders. According to Tellis and Golder (2001), firms at the leading edge of radical innovation tend to dominate world markets and promote the international competitiveness of their home economies. Thus, radical innovation simultaneously drives market growth, firms’ success, and the economic growth of nations (Landes 1999; Sood and Tellis 2005).

Radical innovation is based on the performance‘s level of improvement and in a technological change. This can be easily understood through the use of technology to create new products. While incremental innovation leads to the planned replacement of product periodically based on the development or revolution of technology such as microprocessor chips, radical innovation is much clearer as it leads to products that have major improvement or significant changes or solve complex problem of existing ones and have not exist before.

Certainly, radical innovation would hardly ever be confused as disruptive innovation as they are often targeted at...