Advantages and Disadvantages of A Business Functioning Within an Ecosystem In Terms of Innovation and Creativity

Innovation and creativity further creates knowledge sharing among companies. Companies can learn from others on how to boost their operations in terms of using the valuable information and further improving on their work processes. An ecosystem further enables the company to increase in learning and thus knowledge. Business that increase their learning help better their work processes while ensuring that innovation is taken to a maximum which further reduces the prices of the goods since they are produced at a lower cost.

Innovation can help other business in the market since the suppliers can share such information with competitors and help them in coming up with such strategies. This can be a disadvantageous to the company, which came up with such an innovation while it becomes an advantage to the competitor. Innovation and creativity can further help a company advance greatly in the market and further gain the market like in the case of Walmart which is the biggest business dealing with household goods together with other products associated with automobiles. Knowing the ecosystem well and coming up with creative solutions further helps the company to gain more of the market especially in specialized market, which further attacks new customers, and thus an increase in the market share (Stankevich, 2002). New opportunities can be found in using innovations and the company can thus discover new markets as a result. A business ecosystem further helps a business to get more information from the market especially that of the consumers that can further help in coming up with innovative ventures like improvement procurement process together with specialized markets.

The downside of a company operating in the ecosystem mindset it that its production process are mostly towards the production of particular products. As such, the business cannot greatly carry out innovation of different products associated with the market since most of the suppliers have to bring specific goods to the organization. As such, innovation in this case does lead to newer products but only in improving the process of getting the goods to the company and eventually to the customers. Since Walmart has developed different innovative strategies in the market, other companies may take advantage of the innovation and introduce competition in those markets that are specialized (Campbell, 2005). Operating in an ecosystem may be disadvantageous if the other companies come up with better innovative ideas that will boost their performance in the market.

Get Your Custom Paper From Professional Writers. 100% Plagiarism Free, No AI Generated Content and Good Grade Guarantee. We Have Experts In All Subjects.

Place Your Order Now
Scroll to Top