EFFECTIVENESS OF PRODUCT INNOVATION AS A TOOL OF ACHIEVING COMPETITIVE ADVANTAGE IN THE PURCHASING ENVIRONMENT (A CASE STUDY OF UNILEVER NIGERIA PLC ABA)
ABSTRACT
This research work was undertaken to know the effectiveness of product innovation as an effective strategy of achieving competitive advantage in the purchasing environment in a case study of Unilever Nigeria plc Aba. In carrying out this work, primary and secondary source of data collection method were adopted the survey method was used. The data was carefully analyzed and interpreted. Bases on the summary, conclusion were made, the findings revealed the effectiveness of product of achieving competitive advantage in the purchasing environment the research recommends that government individual and corporate bodies should help in the provision of available materials. By so doing the objective and effectiveness of product will be achieved.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Production innovation is one of the important concepts in purchasing. Some evidence suggests that effective product innovation results to sustainable competitive advantage. Other observed new product development and it launching into the purchasing place as difficult costly took or a dangerous business. The question that needs to be answered re what is innovation why some firms embark on innovation? According to the universal English dictionary, innovation means something introduced, a change new tangled practice while develop is a state or process of developing growth evolution gradual process or expansion. Joseph Selumpete’s classic work on management of the innovation process type of innovative activity. They are invention, innovation and initiation. He defined invention is the act of execting or developing, a new product or process of idea while he saw innovation as the process of creating commercial product from invention. Finally, he defined initiation as adoption of the innovation by similar firms. How ever, initiation usually leads to product of process standardization.
Longman dictionary of English sees innovation a new idea, method or invention. But according to universal English dictionary innovation means something newly practice while development is a state or process of developing growth evolution gradual process or expensive. The technological revolution and greater competition is domestic and international market have increased the competitive importance of innovation. Recent research has show that firms invest more innovation. Infact positive or receptive investor attitude towards introduction of new products increase the price of the firms stock in the market place as well as at the stock exchange market. In view of the economy advantage of product innovation and need to stay a head of the curne, innovation in the face of their competitor in order to maintain sustainable success in future. Therefore, effectiveness of product innovations a subject, which is more recognized to be vital to the future of companies. This fact that may of the high avidity products is needed by customers are not readily available has led consumers into importing some of them. This problem can be solve if companies recognize the importance of innovation develop their innovative ability with government giving economic and instrument enabling environment when and when necessary.
Furthermore, all products have life cycles, which dictates that at some points their usefulness will decline, although there is substantial variation in life lets by types out class of product. A product cannot line forever, and purchasing attribution all work against its immorality. Stanton W.J. likened products to human. They are born, in the light of this therefore the need for the effectiveness of product innovation by business firm should not be over emphasised. Demand is increasingly dynamic and product its life cycles are getting shorter and the time scale of most products is being compressed by accelerated research and mass distribution. If business firms are to survive in the wake of all these social economic, political and cultural changes that are affecting their business adversely. They must have a capability for product innovation. A product that effectively most consumer needs reduces problems associated with decisions on distribution. Pricing advertising and personal selling in most idea, while a poorly developed product on the other hand, creates many problems for other decision areas in the company. Organizations are always competing among themselves for survival market, growth, market share, product lines and mix. All these are necessary strategies for survival which are the over all objectives of any corporate entity. All those it is hoped could be achieved through the effectiveness of product innovation.
Innovation both in the theory and practice, is not a new phenomenon. In Nigeria, during the olden dyas people used to drink from animal horns and aims of calabash but the loca craftsmen in Yoruba land stated making better cups and other utensils through brass casting. This practice was known only a small group of professionals and its often protected as trade secret by religious section today the innovation ideas and practice have spread to other parts of the country and economy. Many write-ups of innovation is indeed old for example, Adam smith expanded the relationship between innovation in machine building industries and the scientist Marx assifiend to machine technical innovation “the competition” according to Marx” the Bour geois’s cannot exist production”. Finally, innovation can be highly productive but often a risking road to sukess. In most industries today any company that is not aggressively lert to innovation possibilities is taking a competitive risk which at least to be intelligently aware.
1.2 STATEMENT OF PROBLEMS
Given the rapid changes in taste technology and competition, it becomes risking for a company to relax on its existing product. This is because consumer taste is from time. Every company therefore needs the effectiveness of product. This taste every company there fore needs the effectiveness of product innovation in order to survive in the over changing business environment. There are many difficulties involved in product innovation and purchasing new product line. One of such factors is the uncertainly in pricing and strategy when introducing a new product into market. Another problem in effectiveness of product innovation is highly purchasing cost. At the introductory stage of any product, consumer may not be aware of its existence and where is could be obtained. Expensive promotional tools would be needed to accomplish this objective. The competitive of the market also poses huge challenge to a new product at a certain stage in life been competitive if the product lacks critical attribute that can compare favourable with those of competing products and if management lacks desired competitive ability to push it certainly it would gradually discount. It also found out that many top management lack the know how and generally skill needed for a successful new product development. The fact failure, risk and uncertainly make them special as paids the effectiveness of product innovation.
