4.0 The importance and impact of product innovation

4.1The reasons that why continue to innovate the computer is important.

First, the new computer can offercompany unique opportunities for competitive advantage. Through developing new computer can help company to achieve the technological leadership, establish product standards, and make the product better than competitors in the longer term.

Second, the new computer can provide additional “first mover advantages” to the company. By developing new products, the company can capture a big share of the market before competitive products quickly.

Third, the new computer can make the company gain higher profitability. During the early stages, the new computer will face less competition than the computer in a mature market (John Stark, 2011). Therefore, its profitability will tend to be higher.

4.2 How this innovation impacts the supply chain？

First, the impact on suppliers: If the raw materials or components of new product reach the development site, they must pass the supplier's producing and transport of goods. As the raw materials required for the development of new products usually have their special requirements, it is more difficult to supply the raw materials schedule. Therefore, it requires suppliers to have sufficient strength to meet the new computer.