ENTERPRISE AND

INNOVATION IN BUSINESS
 ABSTRACT
Organizations have realized the significance of innovation to acquire competitive
advantage and cost benefit. Firms are engaging themselves in different innovative activities
that ranges from process of manufacturing, product development and building up of brand to
attain loyalty of customers. Business environment has become very dynamic with more
increasing demands of buyers and intense market competition.
Entrepreneurs that implement new trends are capable to survive and prosper to a
larger extent and the most successful individuals, supervisors and leaders in business are the
ones who not only bring innovation in their own work but also persuade and support others to
be innovative in every part of their work.
Enterprises use the concept of innovation as a significant factor because it directly
contributes in the success of an organization. Entrepreneurs’ need to act as innovative leaders
as it helps them to keep acquiring new ideas and bring in talent and creativity in the business.
Innovation has a clear impact on the competitiveness of organizations and have high profit
margin and also increases the rate of retention of customers that could otherwise go towards
some other substitute.
Table of Contents
INTRODUCTION...........................................................................................................................1

ENTREPRENEURS ADAPTING TO CHANGE....................................................................................1

ENTERPRISE AND INNOVATION...................................................................................................2

STRATEGIES OF ENTREPRENEURS TO STAY IN THE BUSINESS....................................................2

SKILLS AND QUALITIES THAT AN ENTREPRENEUR NEEDS TO ADOPT.........................................4

CONCLUSION...............................................................................................................................4

REFERENCES...............................................................................................................................5
INTRODUCTION
The current marketplace is composed of numerous businesses and corporations. Many
of such businesses are quite old and are still sustaining because of the ability of the owner to
change according to the time and needs of consumers. On the other hand there are several
new age businesses as well which have been established by young entrepreneurs. The
economy has survived because of the responsiveness and adaptability of industry leaders
(Borghans and et. al., 2000). In order to survive in this intensive competitive environment,
businesses have to change their strategies with time and be able to continuously progress to
meet the demands of people.

ENTREPRENEURS ADAPTING TO CHANGE

Being prepared and keen to accept and acclimatize to change gives a distinctive edge
to entrepreneurs. It is very evident from history that those businesses which have resisted
change and did not embrace it were victim of premature death. Even if a business is
successful in the present, yet it has to devise new strategies and policies to manage the
change that could be nearing (Hine and Carson, 2007). In the entire technology world, the
name of George Eastman is taken with high reverence. Photography was made an amateur
sport by George Eastman. When competition intensified in the camera market, he quickly
adapted to change and moved his focus towards the creation of film roll (Mani, 2011). These
film rolls went on to replace bulky glass plates which were very complicated to process. The
strategy used by George Eastman was related diversification. This diversification along with
innovation became the bedrock for motion pictures film. Eastman then acquired a patent for a
camera in which the new film roll could be used. He later created the Eastman’s Kodak
Brownie which was priced at just $1 and made it plausible for the common man to have their
own Kodak moments. Eastman here made use of his analytical skills and anticipated
consumer needs of the time (McClendon, n.d).
Entrepreneurs of today’s era need to be highly innovative and creative to manage the
extreme competition. The significance of innovation in entrepreneurship is revealed by
coming up with novel ways to generate any product or services. In the area of innovation
producers can come up with another product or enhanced products to compete in the market
(Hakim and Jin, 2010).

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ENTERPRISE AND INNOVATION
Innovation lies at the heart of every entrepreneur. The story of Apple Inc. is the most
recognized one. The computing genius of Steve Wozniak was combined with the marketing
prowess of Steve Jobs and it gave birth to Apple. It is important to note here that simply
being the originator of innovative and ground breaking products isn’t enough. It is very
important to effectively the sell the product or service. Apple Inc. is one of the largest
technology companies in the world in terms of revenue (Katzenbach, 2012). However, to
sustain this position in the market, the entrepreneurs implemented a range of strategies. The
three main strategies that kept the company going were firstly to price the products to
consumer segments, secondly, to keep an eye on the future and thirdly to listen to the
consumers. When the company introduced its latest iPhone last year, it cut down the price of
its 3G version to $99. On the introduction of its new iPad, the price of its old iPad was
reduced by $100. Thus, Apple was successful in creating extra consumer segments (Stark and
Stewart, 2012).
With the continuation in launching of ground breaking products, consumer
expectations from Apple also rise. The continual innovation and forwards looking approach
have enabled it to stay ahead of its rivals like Samsung, Blackberry and others (Gustin, 2012).
In the dynamic ever changing global world, innovation is the solitary key that can ensure
growth and development in business for long run. In order to manage the present changing
business environment it is very important for the entrepreneurs of new business needs to
influence their employees and foster change management (Whitley, 2000).

STRATEGIES OF ENTREPRENEURS TO STAY IN THE BUSINESS

Cost leadership and differentiation strategy has been widely incorporated by Apple
Inc. These strategies were primarily aimed at ascertaining the success and competitiveness of
the firm in the technology world. Apple has strived hard to lower its cost of production which
enabled it to determine the prices of its products (Stark and Stewart, 2012). Low production
as well as distribution costs has helped the company in quoting competitive prices for its
products and thereby augmenting the gross profit. It has gained cost leadership by exercising
tight control on labor and input costs and minimizing operating plus distribution costs. Along
with operational strategies, Steve Jobs also paid equal attention to the marketing aspects. The
advertising techniques of the company have ensured that its products are differentiated from
rival firms’ products (Thomas, 2007).

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 Just like Apple, George Eastman also developed a number of strategies even at that
time to reap high profits. However, the strategies of Kodak differed from that of Apple.
Eastman sought to preserve profitability by contending with improvements, product
reliability and quality rather than competing on price. His strategies comprised of 1)
producing superior quality plus dependable photosensitive materials; 2) integrating
production, marketing and raw material supply in a single company; 3) consistent
enhancements in roll-film cameras; 4) advanced research in photographic technology and
science; 5) acquiring rival firms; 6) developing a strong workforce (Jenkins, 2000). He
believed that an effectual entrepreneur as a leader needs to influence the workforce by
building trust and confidence among employees and communicate the message effectively
with them. This shows that even in that era, strategic entrepreneurs had several business
strategies to keep their operations running smoothly (Innovation and Entrepreneurship in a
Global Economy, n.d).
Michael Dell is another such entrepreneur who started the company Dell Computer
which is one of the biggest personal computer and laptop manufacturers in the world. The
strategy adopted by Dell was to create PCs and laptops to order and sell them directly to the
customers (Ogg, 2007). The company was successful in cutting competition by
manufacturing inexpensive and good computers and evaded storage costs and the one related
to superseded inventory. When Michael Dell stepped down from his position of CEO, the
company struggled to sustain itself in light of intense competition and dynamic business
environment. However, on return of Michael Dell back to his position, the company gained
back its stability (Jenkins, 2000). The company recently announced developing markets,
simplifying IT and an emphasis on green issues as parts of its strategy.
Bill gates, the founder of Microsoft is known for his marketing prowess than for his
programming genius. He is a visionary leader and saw the market potential of PCs which was
not visible during the earlier times (Borghans and et. al., 2000). But he was successful in
foreseeing this and consequently acquired the rights of QDOS and thereafter sold its million
copies along with IBM and made a handsome amount. The man knows how to sell his
products. This reinstates the fact that no matter how big or popular an organization is, it has
to consistently improve its marketing strategies too and find new innovative ways of selling
its products or services (Mann and Chan, 2011).

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SKILLS AND QUALITIES THAT AN ENTREPRENEUR NEEDS TO ADOPT
There are certain skills and qualities that make up a successful entrepreneur.
Entrepreneurs believe that every situation or event is a worthwhile opportunity. A successful
entrepreneur doesn’t think too much about success and failure. They are very confident with
their knowledge and firmly believe that they garner success for their businesses.
Entrepreneurs regularly come about with solutions that are fusion of other things. They
revitalize products and sell them to new target markets (Gordon, 2006). Embracing change
with open arms and being open minded about things are two main qualities of an
entrepreneur. The leadership style of Steve Jobs was a bit intricate. He was confident enough
to take risks and experiment. Many of Apple’s products failed also in the market, but that
didn’t stop him from keep on introducing new products. He was very successful in shaping a
powerful and unique culture at Apple (Forza and et. al., 2000). Likewise, George Eastman
was a very daring and far sighted entrepreneur. Michael Dell was also a visionary and knew
what would strike with the customers. He penetrated the minds of customers and gave them
the product they desired. One thing that was common in all of them was their innovation
capability. In addition to this, all of them embraced change and capitalized on it. Hence, these
are the major qualities that are required to be a successful entrepreneur and take the company
to invisible heights (Hanna, 2010).

CONCLUSION
Thus, it can be concluded that cultivating continuous innovation and creating novel
business ideas have become crucial parameter for success in today’s businesses (Milter and
et. al., 1998). Entrepreneurs today and even in the yesteryears are similar on grounds of
requisite skills and qualities. Being open minded, creative and confident are some of the skills
that can be seen in some of the most successful entrepreneurs such as Steve Jobs, Michael
Dell, George Eastman and etc. An entrepreneur needs to accept and adopt changes so as to
continue the smooth operations of his business. There are a number of strategies that can be
adopted by individuals to make their company stay in the market (Redlich, 2006).

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REFERENCES
Books, Journals and Articles
Borghans, L., and et. al., 2000. Educational Innovation in Economics and Business V:
Business Education for the Changing Workplace. Springer.
Forza, C., and et. al., 2000. A framework for analysing business performance, firm
innovation and related contextual factors: perceptions of managers and policy makers in
two European regions. Journal of integrated manufacturing systems. 12(2). pp.114-124.

Hakim, A. L., and Jin, C., 2010. Innovation in Business and Enterprise: Technologies and
Frameworks. IGI Global Snippet.

Hanna, N., 2010. Enabling Enterprise Transformation: Business and Grassroots Innovation
for the Knowledge Economy. Springer.

Hine, D., and Carson, D., 2007. Innovative Methodologies in Enterprise Research. Edward
Elgar Publishing.

Mann, L., and Chan, J., 2011. Creativity and Innovation in Business and Beyond: Social
Science Perspectives and Policy Implications. Taylor & Francis.

Milter, G. R., and et. al., 1998. Educational Innovation in Economics and Business III:
Innovative Practices in Business Education. Springer.

Redlich, F., 2006. Innovation in Business. American Journal of Economics and Sociology.
10(3). pp.285-291.

Whitley, R., 2000. The Institutional Structuring of Innovation Strategies: Business Systems,
Firm Types and Patterns of Technical Change in Different Market Economies. Journal of
organization studies. 21(5). pp.855-886.

Online References

Gustin, S., 2012. Why Apple is winning: Innovation, Opportunity and Execution. [Online].
Available through: <http://business.time.com/2012/04/25/why-apple-wins-innovation-
opportunity-and-execution/>. [Accessed on 9 January 2013].

Gordon, A., 2006. Essential Qualities of an Entrepreneur. [Online]. Available through:

<http://ezinearticles.com/?Essential-Qualities-Of-An-Entrepreneur&id=398886>.
[Accessed on 14 January 2013].

Innovation and Entrepreneurship in a Global Economy. n.d. [pdf]. Available through:

<http://www.druckersociety.at/repository/scientific/Pearl.pdf>. [Accessed on 9 January
2013].

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Jenkins, R., 2000. Eastman the Entrepreneur. [Online]. Available through:
<http://www.pbs.org/wgbh/amex/eastman/sfeature/entrepreneur.html>. [Accessed on 9
January 2013].

Katzenbach, J., 2012. The Steve Jobs Way. [Online]. Available through:
<http://www.strategy-business.com/article/00109?gko=d331b>. [Accessed on 9 January
2013].

Mani, 2011. How Entrepreneurs Adapt To Change. [Online]. Available through:

<http://www.entrepreneurs-journey.com/6771/how-entrepreneurs-adapt-to-change/>.
[Accessed on 9 January 2013].

McClendon, J., n.d. Greatest Technology Entrepreneurs of All Time. [Online]. Available
through: <http://www.success.com/articles/199----greatest-technology-entrepreneurs-of-
all-time#Eastman>. [Accessed on 9 January 2013].
Ogg, E., 2007. Michael Dell talks consumers, retail strategy. [Online]. Available through:
<http://news.cnet.com/8301-10784_3-9774877-7.html>. [Accessed on 9 January 2013].

Stark, K. and Stewart, B., 2012. 3 Strategies to Adopt from Apple. [Online]. Available
through: <http://www.inc.com/karl-and-bill/3-strategies-to-adopt-from-apple.html>.
[Accessed on 9 January 2013].

Thomas, C. C., 2007. Managing Change. [pdf]. Available through:

<http://www.mbaworld.com/blr-archive/opinion/29/index.pdf>. [Accessed on 9 January
2013].

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