Why Entrepreneurial Organizations Seek Opportunities for Innovation (Essay Sample)

Why Entrepreneurial Organizations Seek Opportunities for Innovation
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Why entrepreneurial organizations seek opportunities for innovation
Entrepreneurial organizations continuously endeavor to create new methods, ideas, and products (Drucker, 2014). Every organization views problems differently and works to develop unique solutions to stay ahead in its line of production. Indeed, innovation is the single most significant tool for a competitive company (Kiron, Kruschwitz, Reeves, & Goh, 2013). The following discussions highlight the reasons why innovation is so essential to every modern organization.
Companies which value innovation proliferate and become industry leaders. In a study carried out in 2015 named "The Deloitte Innovation Survey," 60% of the respondents interviewed cited change as a vital tool for growth (Wiesenthal, Condeço-Melhorado, & Leduc, 2015). Enterprises that support innovation manage to scale up and recruit more workers. As a result, such organizations procure higher rates of production. Therefore, such firms can reach out to more customers and win a more significant market share. Innovation facilitates the growth of both small and established businesses (Drucker, 2014).
Organizations need to stand out from their competitors, and this is easier to achieve through innovation. Indeed, irrespective of the products and services a company provides, other firms are manufacturing similar items hence the need to attain a competitive edge (Kiron et al., 2013). Through innovation, companies can produce unique products and services. As such, organizations can secure a group of loyal customers who will always purchase their items irrespective of the price. For example, Apple Inc. has acquired a large number of loyal clients. These customers buy the company's products even when they can get similar ones at a lower price from the company’s competitors. Innovation enables firms to infuse value into popular products. Therefore, innovative brands always stand out and give additional revenue to companies (Wiesenthal, Condeço-Melhorado, & Leduc, 2015).
Innovation enables organizations to meet ever-evolving customer needs. The features clients prefer in certain products today may fail to meet their preferences at a later date. As such, there is a need for every firm to keep track of the changes in the preferences of customers and innovate to fulfill them (Kiron et al., 2013). For instance, a company engaged in the provision of internet services can quickly lose its clients when it fails to move to a modern high-speed mobile network technology. By investing in innovation, companies can stay up-to-date on industry dynamics and make improvements to their products even without the knowledge of their clients (Wiesenthal, Condeço-Melhorado, & Leduc, 2015). The surest way of meeting the long-term needs of one's customers is to invest in innovation. Therefore, to stay afloat, businesses must provide new ide