Innovation And Entrepreneurship

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INNOVATION & CHANGE

Entrepreneurship is a type of business development and ownership that focuses on innovation, an innovative product or service, an innovative production process, innovative marketing strategies, or an aggressive approach to business. Entrepreneurs are networkers and risk takers. They are different from a regular traditional business manager or owner who operates in a more formal management hierarchy with more clearly defined authority and responsibility. Traditional regular business management may not be overly aggressive and are concerned about minimizing risk. (Stevenson 2008)

Innovation is a process that introduces something new or does something in a different way. It involves taking a new idea, or revising …show more content…

New markets opened around the world through new trade agreements between countries which motivated companies to launch an infinite number of new products and services. As a result, innovation became a major part of corporate strategy during this period as companies tried to remain competitive and not lose market share to companies that were more innovative.

Business can create value by developing new knowledge and/or using existing knowledge in new innovative ways. Innovation is often used to mean the development of a new product or service, but businesses can also innovate in other ways, such as through new business models, management techniques and organizational structures.

Entrepreneurs seek innovation to respond to customer demands and improve customer satisfaction through new processes. Innovation increases loyalty among current customers and helps identify new customer segments. Such demands might include for example, the use of a portable phone to conduct banking, pay for groceries at the store, or scan bar codes in

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This involves having an understanding of what problem the customer needs to solve. For example, entrepreneur Steve Jobs of Apple, Inc. developed the iPod for consumers who wanted to take their music with them, like during walks, or while running or working out. Hard to do those things with the options that were available at the time. Imagine how hard it would be to run five miles with a large boom box over one’s shoulder. Regular introduction of new innovative products has made Apple, Inc. a leader in innovation and any new product or upgrade is something new that a customer will not only pay. Not to mention camp in line outside the store a week before the launch to wait for an opportunity to purchase the new innovation or upgrade!

Bottom line, entrepreneurs also seek innovation to increase their revenue. By introducing a new products and services which customers are not yet familiar with, either by developing a new technology or changing the quality of an existing good, entrepreneurs can ensure a business a high market share. This is because the new innovative product or service is considered an early mover. Companies that employ this strategy are able to charge high prices in the short run for their products and services, as they recover their capital investment before competitors enter the

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