Which of the following is not the reason that companies need innovation?

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BlackTom AI · Accepted Answer

To tackle the question, I’ll go through each option and assess whether it represents a reason companies need innovation.
Option 1: 'Rapid technology changing.' This is a valid reason for companies to innovate. When technology evolves quickly, firms must innovate to keep up with new capabilities, integrate new tech, and avoid obsolescence. Failing to respond to rapid tech change can render products or processes outdated. 
Option 2: 'Innovation requires huge capital investment.' While true in many contexts, this statement describes a barrier or constraint to innovation rather than a reason that companies need to pursue innovation. It explains why some firms might hesitate or struggle with innovating, not why they need to innovate in the first place. Therefore, it’s not a justification for why innovation is needed; it highlights a cost-associated challenge. 
Option 3: 'Companies with strong innovation competencies grow 3 to 6 times faster than their competitors.' This reflects a consequence or potential benefit of innovating. It demonstrates why firms would want to invest in innovation — it correlates with faster growth relative to peers. Hence, it is a reason to pursue innovation. 
Option 4: 'The product life-cycle of products become shorter and shorter.' Shorter product life cycles create a need to continuously innovate to refresh offerings, stay ahead of rivals, and maintain relevance in the market. This is a classic driver for ongoing innovation. 
In summary, options 1, 3, and 4 describe genuine drivers for why firms pursue innovation, whereas option 2 describes a cost or barrier associated with innovating, not a reason to pursue it.

badm_375_120258_253267 HW 8 Product and Service Development Strategy

Which of the following is not the reason that companies need innovation?

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