Management and Organizational Studies 2320A/B Chapter Notes - Chapter 9-16: Laundry Detergent, Loss Leader, Lead Time

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: John White

Document Summary

Innovation: process by which ideas are transformed into new products and services that will help firms grow: without innovation, firms could only. Continue to market current products to current customers. Take same product to another market with similar customers. Firms create and deliver value more effectively: by satisfying changing needs of current and new customers, or simply by keeping customers from getting bored with current product/service offered. Take well-known offering and innovate to make it more interesting: market saturation. Longer product exists in marketplace = more likely that market will become saturated: without new products, value of firm will ultimately decline. Firms sustain growth by getting consumers excited about new looks and features of products. Saturated markets can also offer opportunities for company that is willing to adopt new process/mentality. Ex: looking for niche markets: diversification of risk, through innovation, firms create broader portfolio of products, which helps diversify risk and enhance firm value better than single product can.