Innovation in a market economy Essay Example | Topics and Well Written Essays - 1000 words

Innovation in a market economy - Essay Example Organizations cannot exist in the market with the conventional products alone. For example, think of a situation in which Microsoft sticking with its old operating system Windows 3 series alone at present. Everybody knows that Microsoft was able to keep its monopoly in the software industry purely because of their ability to innovate news products or incorporate new features to their existing products. Thus we got Windows 95, 98, 2000, XP, Vista like updated versions of windows. It is not possible for Microsoft to accommodate the requirements of the current world using their older versions of operating systems. The current facilities like video conferencing, video chat, high resolution graphics processing, internet, e-mail etc may not run its older versions of Windows. Thus innovation makes an organization capable of meeting the present challenges by updating their existing technologies. Innovation is needed even in formulating strategies. Same strategy may not work everywhere even if the product is the same. Parker Pen Company has tried to implement same marketing strategies to market their writing equipments all over the world at the beginning of their international campaign. They thought same product needs same marketing strategies everywhere. But they failed miserably because of the above strategy. â€Å"Product may be the same, but may be different†, Parker Pen Company failed to recognize the above fact. â€Å"The idea of selling pens the same way everywhere did not sit well with many parker subsidiaries and distributors.