Catering to existing demands of consumers is something most businesses do to survive in the market. But there are others who craft something that itself creates a demand build-up. The way Americans spend, fads fizzle out very fast and it takes a lot more than a new product to sustain in this fast changing market.
The very first stage of any product, the idea holds the key to innovation that can create something which taps on to unknown demands.
You pick any investment option at this point and you are bound to find more risks than growth prospects, eventually leaving you indecisive in the mists. ( Also Read Current State of US Economy and Federal Reserve’s Forecasts for Next Few Years_)
What could be a better theme to play other than innovation in such environment? Here, we have made a small attempt to bring forward the most innovative companies from the passing year, which still hold a good potential for extended growth along with positive surprises. (Also Read Investment Strategy Series – How to Invest in Stocks and Bonds Funds )
Haier is currently enjoying the top rank in appliances sales worldwide, which is currently around 6% of total recorded sales. Key drivers of this 20% growth in past year are its share in refrigerator and washing machine sales. It’s simply innovation, which has led Haier to the top spot in such competitive markets.
With their iPad getting so successful, that people are now questioning the need for other popular innovations such as NetBook and eReader, Apple is surely the market leader way ahead of its competition. (Also Read Should You Invest in Aggressive Stock Market Listed Companies? )
Despite failing to acquire Groupon, Google is going strong with its innovation and market presence. Their Cupertino, an Android OS, has already captured a 20% market share this year and this is expected to dominate the Smartphone software market by 2013. The Google TV Internet television is their next big innovation, which is still to add profits to their balance sheets.
Selling over 720, 000 books, Amazon saw staggering revenue boost this year. This 30% upside surprise was triggered by an innovation, Kindle eReader, which is attractively priced around $139.
Last year alone the stock price saw a 400% steep rise, but that does not make it expensive. They have announced a plug-in hybrid vehicle in a joint venture with Daimler. This is surely one of the candidates to reap rewards from the go green push.
Their latest innovation, Windows Phone 7 is sky rocketing at present, and this product will continue to gain popularity. They are still reshaping the gaming industry by adding new gizmos to its poplar gaming console, the Xbox.
That was our list of most innovative companies you should keep on your radar in 2011 as innovation will be a key theme at a time when black clouds of uncertainties shadowing other investment areas.
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