Innovation and Change
Western Governors University
QHT1 Task 3
September 12, 2016
There are many reasons why entrepreneurial organizations seek opportunities for innovation. Many of the reasons have to do with succeeding and becoming profitable. Among these many reasons, four stand out as the main reasons including having a competitive advantage in an extremely competitive world, economic growth, business success, and fostering a good work environment within your company by allowing employees to be creative. All these reasons are explained further below.
II. Competitive Advantage
We live in an increasingly competitive world where there are multiples of many products or services available to consumers throughout many industries. Since we live in this luxury where we are often able to choose between many brands, it is vital for a company to stand out among the crowd to gain a good market share of consumers to stay in business. If a product seems too similar to others in the industry, consumers will most likely just go with what is the least expensive. To combat this, companies will often turn to innovation to stand out among the crowd and gain the ultimate edge among their competitors.
III. Economic Growth
Innovation can lead to economic growth throughout a region. Creating and selling innovative products can encourage consumers to spend money and stimulate the economy since the general public always wants the new and latest merchandise or service. Additionally, innovative products can help the general population and make their lives easier by showing them what they didn’t know they were missing. They will in turn show their friends, and, before you know it, everyone is buying the product. Both the company and the local economy can profit from this sudden boom since the company will end up paying taxes on their profits to the government and the government uses those taxes to provide services back to the community.