Question 1: How Can Knowledge and Creativity to be used to provide competitive advantage in a competitive marketplace – and how might this advantage be protected and preserved at present?
In today's global business, sustaining a competitive position is a supreme concern. Competition within the small and medium business industry is intense with many competitors. The ability of a firm to survive depends on how the firm takes advantage of the opportunities in the market place to satisfy its customers. Many companies have demonstrated their capabilities of being been sensitive to their customers by trying to understand customers’ needs and customers’ complaint taking initiatives to meet those needs.
Knowlegde & Creativity
According to Webb (1998, 110-15), information is the potential for knowledge. Knowledge is actionable information that can be used across the entire organization. The more knowledge an organization possesses, the more it can reduce uncertainties. Knowledge and information are the crucial assets of a business and there is a need to learn to handle these assets in new ways. Traditional monitoring systems which were designed to deal with tangible inputs & outputs are no longer adequate to survive in the market. Organizations are required to share information and knowledge internally as well as learn to adapt more quickly to external circumstances in order to retain their competitive advantage.
In other words we can say that simply recycling old knowledge will not serve the purpose of survival but creation and application of new knowledge is required to achieve the lofty peak of competition and success. However it is important to keep in mind that the created new knowledge should be useful for the organization.
The creativity is one of the strong corporate commitments to achieve as an Innovation Leadership. It can motivate the entrepreneur or scientist to create an idea of invention. “We are always saying to ourselves… we have to innovate. We got to come up with that breakthrough.” (Bill Gates, Microsoft). “Creativity involves an ability to come up with new and different viewpoints on a subject” (Anon 2007, P.88). It is also said that "Creativity is the generation of novel ideas that might meet perceived needs or respond to opportunities for the organization" (Daft, R. L 2006,P. 396).
Creativity plays a major role in today’s business as it shifts the concept of zero-sum game into non-zero sum game. In other words from a win-lose to a win-win strategy. It opens new market opportunities without referencing competition or using war analogy. “Every organization can break free the head-to-head zero-sum competition and open up the blue oceans of new markets” (Kim, W. C. and Mauborgne, R. 2007, p. 20).
The business model focus is on value creation and how the value be captured. Competitive advantage enables the firm to create superior value for its customers and superior profits for itself. According to the Competitive Advantage model of Michael Porter, the competitive advantage is defined into three generic marketing strategies which are cost advantage and differentiation advantage and focus strategy.
A cost advantage will be achieved when the same product or service as competitor is delivered with a lower cost. A differentiation advantage will be attained when exceed benefits of competing products are delivered. A focus strategy, whether it involves differentiation or low cost, or both, concentrates on a part of the marketplace or product line. The competitive approach takes aggressive or protective action to make a strong position in a business, with the intention of achieving a successful competitive strategy as well as make a greater turnover on investment. The objective of most business strategy is to obtain a sustainable competitive advantage.
Ways of knowledge and creativity provide competitive advantage in a competitive marketplace
Please join StudyMode to read the full document