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Master's Thesis from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of applied sciences Dortmund, language: English, abstract: The German drive technology industry is dominated from SME's and must supply its products to customers around the world. In addition this industrial segment is challenged by competitors from many other countries as well as from customers with very different needs. Therefore SME's are faced to two main questions. First challenging question "what will be the best strategy to create competitive advantage?", second: "what are the necessities to carry out this strategy effectively and efficiently?". 1.2 Aim of this work Based on an analysis of the industrial segment the structure and essential needs and boundary conditions will be derived. In addition a suitable strategy to reach a competitive advantage will be analyzed and assessed. For this strategy a suitable innovation management process as well as a toolbox for SME's to implement this process into the company will be developed.[...]