Saturday, 4 May 2013

The Importance of Innovation Investment

The Importance of Innovation Investment
Exactly 125 years ago, in an area called the Rochester, New York, stands a company that leads business as a pioneer in the photography industry, where the company later known as one of the largest manufacturers of celluloid film or better known as the movie roller.

Was George Eastman, an innovator and entrepreneur from the United States is determined to realize his dream, which brought photography to the mainstream level and known to the public. Effort and his efforts showed excellent results, where in 1976, he has started a company that is succeeding with control 90 percent market share of photographic film in the United States (U.S.).

However, with the passage of time and development of technology, in the late 1990s, the company showed a highly significant decrease in sales, where it is caused by the creation of a technology called digital photography, a technology that can produce better image quality, and the image processing time is much faster when compared with the use of celluloid film.

The competitors who successfully developed the technology of digital photography is slowly beginning to take over market share, and eventually more than 20 years later, in January 2013, the company known as Kodak is declared bankrupt by a court of the United States. The story above is a clear example, where a major brand is not always successful.

In an era of increasingly competitive business competition, as now, a brand are required to keep abreast of the times. Various policies have been undertaken in order to survive and compete at the highest level within an industry. Quality improvement and quality of products or services produced into a mandatory thing, where customer satisfaction ultimately is one of the ultimate goal to be achieved.

Innovation is one of the important things that need to be invested by a brand in order to continue to live and thrive in the midst of society. Branding and innovation are intimately connected with each other, where a strong brand can create a variety of innovations to society while reducing the risk that may arise as little as possible so that they can accept these changes.

On the other hand, a well-implemented innovation can create a strong identity in the eyes of consumers so that the brand can be known and can grow larger again. Although closely related to branding and innovation, the implementation process is not easy. Because innovation is related to a new case, in which a brand that is both rigid difficult to accept a significant change.

Determinants to create branding and innovation work perfectly is to perform balancing, focusing mainly on the brand and what the objectives to be achieved in the presence of an innovation that will be raised.

In conclusion, investing in creating an innovation is an important step in the development of a brand, in which the lack of innovation, the brand can be more competent in the face of competition and can confirm a strong identity in the eyes of consumers.

In addition, the branding strategy and innovation strategies implemented properly can help a brand to expand its business to become more profitable.


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