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
- 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.