Question

Organizations must be careful not to become complacent, particularly when their competitors are coming up with creative ideas. This highlights the importance of ______ in achieving competitive advantage."

a) efficiency
b) innovation
c) responsiveness
d) quality

Answer 1

Innovation is crucial for achieving competitive advantage in business.

Step-by-step explanation:

The importance of innovation in achieving competitive advantage is highlighted by the fact that organizations must be careful not to become complacent, particularly when their competitors are coming up with creative ideas. An innovative firm knows that it will usually have a temporary edge over its competitors and thus an ability to earn above-normal profits before competitors can catch up. For example, Samsung CEO Gregory Lee emphasizes the relentless pursuit of new innovation as a key principle of their business, enabling consumers to discover a world of possibilities with technology.