Final answer:
Increased competition emphasizes the development of innovative products and services to ensure customer satisfaction and corporate competitiveness.
Step-by-step explanation:
Increased competition has put a priority on customer satisfaction and the development of innovative products and services. Innovative products are essential in markets that are not perfectly competitive, as they can lead to differentiation and a temporary edge over competitors. Gregory Lee, the CEO of Samsung, emphasizes that innovation allows consumers to discover a world of possibilities and enables firms to enjoy above-normal profits temporarily before competitors can emulate their innovations.
Product differentiation is vital in monopolistic competition, where a variety of styles, flavors, locations, and characteristics create unique products, giving consumers a reason to choose one brand over another. Differentiation can stem from innovation, the introduction of new technology, or producing products that better meet consumer desires. Companies that can innovate effectively are likely to have a significant advantage in the market.