For most of the 20th century, innovation was
the territory of large organizations as it required significant resources,
which only large organizations had. Although, in 1960, after the first
venture capital efforts, small companies and startups started to take hold.
The internet and the venture capital model gave a competitive advantage to fast-moving
startups. For nearly two decades, startups have had much of the limelight
when it comes to breakthrough innovation, dwarfing the efforts of the large
companies which are unable to catch up.
Lack of Innovation
We all have heard the phrase "Rest on
Your Laurels," which means unwillingness to change one's mindset
and be satisfied with whatever you have done so that you don't have to make
any further efforts. In other terms, lack of willingness to innovate. A
reluctance to innovate in a business might leave you limping behind
competitors soaring just because they decided to innovate their business
model. Let's take a look at a few companies to understand it better: -
Netflix attracted
millions of customers who wanted to watch their movies & shows on their
devices while soaring past Blockbuster Entertainment Inc. (an
organization that provided films and video games on a rental basis and was
quite popular in America). However, as the world became more
technologically oriented, Blockbuster failed to follow the route and catch
up. It continued to offer its store service for several reasons, such as
people liked and preferred- going to their stores, resulting in a
reluctance to innovate. This reluctance to update their sales strategy
eventually led to their demise in the market.
Nokia was a fine-tuned machine when it came to
grabbing the latest trends in mobile phone use and translating them into a
novel and profitable designs. Techniques ranging from ethnographies and
early prototyping helped the company keep its healthy lead in mobile
communication. Incremental innovations – regular improvements &
amendments to existing products and services allowed Nokia to maintain its
position in the cellphone market.
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