The Importance Of Innovation In Business

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A business must constantly grow and evolve to be able to survive in today’s world. By allowing customers of other countries access to your products, you create an opportunity for more diverse sources of revenue. While globalising is an enticing opportunity to increase a business’s profits it does come with its challenges. A crucial aspect for the success of a business’s venture into a foreign country is understanding the cross cultural differences between their local country and the new target audience. To be able to understand a country’s culture, one must fully understand that population’s values, beliefs and behaviours. Numerous companies fail or refuse to put in the effort to educate themselves regarding these differences. Without a…show more content…
Innovation has to be ingrained into a company’s culture, which means having the right people on your team, people who are willing to take calculated risks. Businesses need to think outside the box and be aware that customers do not always know what they want until they have it. The ability to identify what customers want could be either be an obstacle or a catalyst for innovation. In general, customers describe what they want by the solutions they need for their problems, it is hard for almost all people to see more than what is currently available in the market. With innovation, companies come out with products customers didn't even know they wanted. A great example of such a company is Apple, who is now one of the most valuable companies in the world. KFC China is also an innovative company, they were one of the first western chain restaurants to enter China. Additionally, when they entered the market they were determined to reinvent their branding. This was an extremely risky move, they had to invest large sums of money into the extensive new menu and the warehouses to allow it. In addition to that, they did not market themselves as a cheap fast food restaurant but a modern and trendy attraction.The bottom line is that companies must make a conscious commitment to be innovative in order to succeed in an international
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