Final answer:
Business success is often achieved through a strong focus on innovation and maintaining a core competency in specific products or services. This approach leads to competitive advantage and higher profits due to efficiencies and consumer demand before competitors adapt.
Step-by-step explanation:
When considering business models and strategies, it's evident that some businesses achieve success through a dedicated focus on innovation. This could mean introducing groundbreaking new ideas or enhancing existing goods and services. Having a core competency—that is, a primary area of expertise in a particular product or service—often results in greater success compared to businesses that attempt to offer a broad range of products. Such specialized firms can maximize their profits by producing products more economically or creating offerings with desirable features that consumers seek.
As exemplified by Gregory Lee, former CEO of Samsung, the commitment to continuous innovation is a crucial aspect of business that opens up a multitude of possibilities with technology for consumers. An innovative company understands that it can gain a temporary competitive advantage and achieve higher-than-average profits until its competitors manage to catch up.