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9609 · 9.3.2

Flexibility and innovation

**Flexibility and innovation** (9.3.2) — link to **differentiation strategy** (6.2) and **fashion/tech markets** where product life cycles are short.

Need to know

What you need to know

  • Operational flexibility is the ability of operations to adapt to market changes.
  • It is a key source of competitive advantage.
  • The two main types are volume flexibility (changing output level) and product flexibility (changing product mix).
  • Requires investment in technology, skilled labour, and efficient systems.

Explanation

Flexibility and innovation

  1. Operational flexibility is the ability of operations to adapt to market changes.
  2. It is a key source of competitive advantage.
  3. The two main types are volume flexibility (changing output level) and product flexibility (changing product mix).
  4. Requires investment in technology, skilled labour, and efficient systems.