The Nestle
July 25th, 2013
Direct competition does not exist at the time of the product innovations of the otherwise would not be innovations, if of course each organization with its new product in the market will be substitutes or secondary competitors but not with the same product since this innovation is allowing to maintain a temporary barrier until your competitor or another player copy your product and make certain modifications or perform a new innovation that allows you to compete with your product in terms of attributes that possess. Company in the market with new product: this new classification differs from the previous one as soon as that organization has replacements and direct competitors, but we should remember that each strategic unit possesses its own competitors, customers, suppliers, an example therefore demos so you can understand better. The Nestle company has clear competitors in terms of the development of their chocolates, and different products of its various segments, but which would assume if that company launches an innovative market product as it did during the winter of 2006, creating a chocolate than any company towards. Put this way to be able to better understanding of the management of innovation in this product, Nestle will continue to have their same competitors, but with the exception that in this recent innovation won’t have any competitor and happened to have a competitive advantage not only as also enjoys position in their consumers in a unique and unrepeatable manner on other players. Innovations enable companies to create a new positioning of its product and the minds of consumers owning since successful positioning in every customer who buys the product will be kept for being original and new. Barriers to entry in the market of innovations: each competitor entry barriers may be low or high depending on the type of industry involved, the following variables can determine the complexity of the income of each competitor and assemble a matrix that will allow us to study the entry of that competitor.