Novotel has adopted a competitive s

Novotel has adopted a competitive strategy that includes reducing costs of operations. That is to say, their business strategy is cost leadership and persuading this business strategy requires being open to ideas and that it responds quickly and flexibly to the ideas that re-present opportunities for potential revenue growth. Firms can compete on price or differentiation. Novotel can be non-price attributes include its brand, reputation and service.

On the other hand, there are different types of innovations, the first type is Incremental innovation, this modestly improves a firm's processes or services or it can be used in fine-tuning its business model, i.e. the way it creates value for its customers. Radical innovation significantly improves existing products and services or completely replaces them with new ones. Radical innovation occurs less frequently than incremental innovation partly because most organisations do not have the technical and human resources required for radical innovation, and because radical innovation happens so quickly organisations are not prepared for the risks and uncertainty which comes with this type of innovation.