In this document is a detailed analysis of the business Amazon Fresh and how they have complied with innovation to create a new unique approach to everyday shopping.
How important is innovation and enterprise to
today’s businesses?
P7- Explore how innovation and enterprise contribute to the success of business.
Today I will explore how innovation and enterprise contributes to the success of a given
business. The main example I will be using today is Amazon, with their new store Amazon
Fresh.
What is innovation?
Innovation is the process of adding new ideas to update old business ways to make it more
efficient. It is the process of adapting a product or service to be more innovative adapting
with technology to become new and improved.
Innovation is the creative process within a product or service with development of new
ideas to increase the product efficiency and profitability and success. This will also add value
to the product or service and differentiate the business from competitors.
For example, there has been so much innovation to help improve the dynamic of business.
From tills you had to wait to be served at, to self-checkout, to now registering a card picking
up your essentials and walking out being charged later. This is all known as innovation.
There are many times of innovation, some big, some small. For example, there can be
innovation of branding or creating new convenient products. An example would be Heinz, it
has not dramatically changed its product but has steadily introduced new ideas. From soup
to all day breakfast in a can!
I will mainly be looking at how Amazon have used innovation over the years.
What is enterprise?
Enterprise is the skill of an individual or organisation to…
-Take risks
- Show initiative
- Undertake new ventures
It is an opportunity for the business to develop skills for the chance to achieve all business
aims. Fulfilling a requirement that the customer wants/needs. This will differ regarding what
your target audience is.
For example, Tesla spotted a gap in the market regarding climate change, pollution and
global warming. The pandemic has also shown enterprise for businesses. Mask companies
thrived throughout the pandemic as they were in high demand and a necessity for
everyone.
, How important is innovation and enterprise to
today’s businesses?
It is important that businesses have a USP. (Unique selling point), this is so they have
competitive advantage. This can be achieved with the use of innovation and enterprise.
Using innovation and enterprise correctly could have been the key to success for many
companies, which I will discuss later. However, some companies did not spot or use
innovation and enterprise which caused them failure. This is prominent with Blockbuster
Video.
Blockbuster was an American-based provider of movies and video game rental. These
services were mainly offered at video rental shops however adapted to DVD by mail,
streaming and videos on demand. In the 1990’s the company expanded internationally and
in 2004 at the businesses peak had 9,094 stores with over 84,000 employees nationally.
Although it all looked successful and the company was thriving, there was a steady decline
in sales in the early 2000’s and the business had to file for bankruptcy protection in 2010
after facing around $1bn of losses the previous year. By 2014, the last 300 company owned
stores were closed.
But why was this? Was this due to the company’s bad innovation and enterprise
techniques?
Was it due to Poor leadership, the Great Recession, competition from Netflix and Redox
automated kiosks videos on demand were major factors leading the businesses plummeting
decline?
I will now take Netflix as a positive example of an innovative company who used enterprise
to their advantage, in contrast with Blockbuster Video who did not leading to rapid failure.
Netflix was founded in 1997 by two entrepreneurs Marc Randolph and Reed Hastings. When
Netflix first opened like Blockbuster, it was just a movie rental service. You could order the
DVD you wanted to watch online, and it would be delivered right to your door. Once
finished with, you would simply post back the DVD to Netflix in the envelope provided.
This was a huge advantage for those that did not have a video rental store nearby them, like
Blockbuster Video. This was seen as the first stage of innovation brining a new dynamic to
people’s lives which was easy and advanced. This was also where the start of e-commerce
was highly effective and becoming extremely popular.
Netflix has since grown to become one of the world’s biggest internet entertainment
platforms. The platform now has more than 151 million paid subscribers in over 190
countries globally, with offers of TV series, documentaries, films, and original productions in
a wide variety of genres and languages.
It is seen as through Netflix had a huge success contrasting with Blockbuster’s huge fail. The
secret to success was embracing change, but Blockbuster did not do this.
At first Netflix competing against blockbuster seemed stupid. Too stupid to be true however
this was soon irrelevant after Netflix used innovation to override the impossible.
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