E I Individual assignment online Essay example

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Question 1: How Can Knowledge and Creativity to be used to provide competitive advantage in a competitive marketplace – and how might this advantage be protected and preserved at present?

Introduction

In today's global business, sustaining a competitive position is a supreme concern. Competition within the small and medium business industry is intense with many competitors. The ability of a firm to survive depends on how the firm takes advantage of the opportunities in the market place to satisfy its customers. Many companies have demonstrated their capabilities of being been sensitive to their customers by trying to understand customers’ needs and customers’ complaint taking initiatives to meet those needs.

Knowlegde & Creativity
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Increasing globalization has resulted in more business opportunities but the marketplace has also become more crowded and competition has increased (McMullan and Shepherd 2006). Creativity enables the entrepreneur to act on these opportunities in ways which can result in competitive advantage for the organization. It can provide the basis for innovation and business growth, as well as impacting positively on society generally (Bilton 2007, quoted in Fillis 2006).

As average business longevity is short, innovation becomes one of the sustainable sources of competitive advantage. Tidd et al (2005) define that there are four types of innovation:
1) Product innovation – a new products or developments on products, e.g. smart phone.
2) Process innovation – assembly line process, e.g. just-in-time production.
3) Positioning innovation – adjustment in context launched, e.g. Lucozade repositioned as a sports drink instead of a medicinal drink
4) Paradigm innovation – adjustment in models does, e.g. skype

Either one type of innovation could benefit the corporate to obtain on favorable terms of competitive advantage. Each of them could be a remarkable step of corporates to be a cost leadership or differentiation advantage.

Protection and preservation the advantage

If the innovation is the creation of new knowledge and inventions and indeed, they are valuable assets to the company. This causes a question that how

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