Final answer:
True, organizations must continuously pursue excellence in quality, customer service, and innovation to keep a competitive edge. Innovation allows firms to stay ahead temporarily and achieve above-normal profits, vital in the face of increased global competition.
Step-by-step explanation:
The statement that organizations need to continuously strive for excellence in quality, customer service, and innovation to maintain a competitive edge is true. Market competition encourages firms to discover new technologies and methodologies that enable them to produce goods more economically or with characteristics that customers desire. As Gregory Lee, CEO of Samsung emphasized, a relentless pursuit of new innovation is fundamental for businesses to enable consumers to access a range of technological possibilities. Moreover, innovation provides firms with a temporary advantage over their rivals, allowing them to achieve higher profits until the competition catches up. Globalization and advances in communications and information technology have also intensified competition by bringing more players into the market from various regions and countries.
Competition can be fierce, and companies with better or cheaper products can diminish the profits of a business, potentially ousting them from the market. Therefore, the private sector's investment in innovation, while sometimes perceived as inadequate, is crucial for staying ahead and ensuring business sustainability in a cutthroat environment.