The business environment is increasingly becoming competitive due to several factors. One of the critical reasons for the increased competition is the existence of highly informed customers. Increased access to information on the web has significantly influenced how customers make purchasing decisions (Díaz-García, González-Moreno & Sáez-Martínez, 2015). Organizations are, therefore, continually looking for ways to meet changing consumer needs and preferences. Rivals will outperform a firm that does not embrace innovation in the market. An emerging trend in the marketplace is that more consumers are looking to purchase products and services that are developed through green production practices. Environmental sustainability is thus a crucial concern for a lot of customers in the contemporary marketplace (Jansson, Marell & Nordlund, 2010). Microsoft can appeal to these customers by embracing green production practices. The company can use eco-innovation as a competitive strategy to ensure that its products and services appeal to consumers that are concerned about the green practices of an organization. Eco-innovation would enable the firm to differentiate its products and services from those of its rivals. The firm, therefore, gains a competitive edge in the marketplace.
Response to Sean Wise
While clean production and eco-innovation practices are essential drivers of business performance in the current marketplace, there is a concern that such investments can erode the bottom line of the organization. There is a need, therefore, to consider how eco-innovation can reduce the cost of doing business and improve profitability. Alternatively, there is a need to consider how embracing green production practices can improve the bottom line of the firm. The focus should not only be on meeting consumer needs and preferences because shareholders also expect a return on investment. Clean production should thus be linked to business performance to ensure that the organization continues to be a going concern (Cheng, Yang & Sheu, 2014). Eco-innovation strategies cannot be implemented successfully if they do not increase business profits.
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References
Cheng, C. C., Yang, C. L., & Sheu, C. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of Cleaner Production , 64 , 81-90.
Díaz-García, C., González-Moreno, Á., & Sáez-Martínez, F. J. (2015). Eco-innovation: insights from a literature review. Innovation , 17 (1), 6-23.
Jansson, J., Marell, A., & Nordlund, A. (2010). Green consumer behavior: determinants of curtailment and eco-innovation adoption. Journal of consumer marketing , 27 (4), 358-370.
