Explain creativity and innovation and in your point of view, why both creativity and innovation are vital in the business context. Support your answer with relevant examples.
Creativity is the ability to think widely, to generate new ideas and connect ideas and have a free minded to approach matters. Innovation is the production or implementation of ideas (Naiman, 2011). Innovation involves introducing of new concept towards existing products or services or processes to make them better. Generally, creativity is the idea, and innovation is the process to implement the idea into real product or service. Creativity and innovation are important in business. There are two major importance of creativity and innovation:
Have better competitive advantage
Target is one of the world famous discount retailer. Target is always come together with Walmart. Walmart is the biggest competitor of Target. Target had undergone a great innovation before. At first, product of Target is about style and fashion and therefore its products’ price are always higher. Walmart is all about low price. Thus, when there is inflation and global recession in the year of 2008, revenue of Target dropped. The customers are turning away to Walmart as they think that the fashioned and styled products means higher price. Gregg Steinhafel, the CEO of Target implements a new strategy to the company. Target undergoes transformation. The types of product sell increased, included grocery products and meat products. The CEO implements ‘one stop shopping experience’ to customers. This provides a better competitive advantage to Target. As a result, the revenue and profit of Target rises and become one of the world famous retailers.
Meet customer needs and wants
Needs are never static, they change and develop over time. Thus, human needs and wants change with time too. New trends in fashion, spending power, concerns for the environment and a lot more factors will influence consumer needs and tastes...
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