Global and Market Challenges of Innovation

Running Head: Innovative Management
Innovative Management
Name of the Student
Name of the University
Author’s Note

INNOVATIVE MANAGEMENT1
Question 1:
Global and Market challenges of innovation.
In a competitive environment there are large number of rival firms that are present in
the economy and stand as an equal competitive firm with the same offering of cost and
quality of service (Zeschky, Winterhalter and Gassmann 2014). The challenges that are faced
in the global and market are in the areas of international structure of the company, the rules
and regulation that are implemented by the company, the foreign laws that are structured, the
cost and benefit analysis of the global pricing strategy. Some of the key challenges that are
included within the presence of the firms in the global market are the frequent changes in the
currency rate of the country, the option of taking the right decision of the transportation
method, maintenance of the cultural differences and overcoming the barriers of
communication with the employee. With the changes in global market the example can be
stated with Airbnb, the people book their reservation for accommodation purpose and is
facilitated throughout the world. This technique of innovation had a challenge where the
clients misused the facility of accommodation and allowed the other people to stay and had
taken monetary benefit which was illegal for client to do.
The challenges that faced in the global market of innovation is becoming one of the
most important aspect of the organizational growth and success (Kallerud et al., 2013). It
should be an initiative of the organization to cultivate innovative factor despite the presence
of the challenges that are to be faced which has the possibilities to hinder the initiatives of the
organization. The common challenges are:

INNOVATIVE MANAGEMENT2
 The employees of the organization in the global market are not empowered to
innovate. It is the fear of the managers that the innovation will hinder and distract the
employees from their responsibilities.
 Development of organized innovative plan can be crucial and can distract the
direction of its operation and innovation in implementing it. Missing a single
associate can create a risk misalignment.
 The innovation technique is normally catered by the functional group and the myth
that only the functional group can delegate the authority of innovation can cause a
severe hindrance in other pace of innovation. Each and every department provides a
unique technique of innovation (Haegel et al, 2017).
Question 2: Generic protection strategies and legal protection strategies
Generic protection strategy was developed by Michael Porter for the purpose that
the company could use to gain a competitive reform in the year 1980. The three aspect of
generic protection strategy are cost leadership, focus and differentiation. The generic strategy
determines about the firm’s profitability which can be above and below the profitability of
the industry. In cost leadership the firms are lower cost producers in the economy. It includes
the pursuits of production, raw materials, economies of scale and technology. Whereas the
strategy explains about focus on the narrow scope of the industry. The department of the
focuser segments its group in the organisation and tailors its strategy. It focus on cost and
attempts to make its target segment. On the other hand differentiation strategy of the generic
protection makes the firm seek out its uniqueness in the industry along with maintaining a
dimension that are valued by the marketers (Kind 2014). With the help of an exam of Generic