Final answer:
Achieving above-average returns requires a focus on innovation to produce cost-effective or consumer-desired products, which provides a temporary competitive advantage and the potential for above-normal profits.
Step-by-step explanation:
The key to achieving competitiveness and earning above-average returns is through innovation that leads to either producing products more inexpensively or creating products with desirable features that consumers want. This approach taps into market competition as a driving force for new technology and innovation.
As reflected in the words of Gregory Lee, the former CEO of Samsung, businesses must engage in a “relentless pursuit of new innovation” which is essential for staying ahead of the competition and enabling consumers to discover new possibilities with technology. By innovating, businesses can gain a temporary advantage over competitors, allowing them to earn above-normal profits until the competition catches up.
Continual innovation is a dynamic strategy for business sustainability. By focusing on cost-effectiveness or meeting consumer desires, companies foster competitiveness. Gregory Lee's emphasis on a relentless pursuit of innovation echoes the need to stay ahead in the rapidly evolving market landscape. Innovative products provide a temporary edge, attracting consumers and yielding above-average profits.
This cyclical nature, where innovation begets competitiveness, aligns with the evolving demands of tech-savvy consumers, ensuring companies not only thrive but lead in an era driven by the constant quest for cutting-edge solutions and consumer-driven technologies.