Organisational Creativity and Innovation

Running head: ORGANISATIONAL CREATIVITY AND INNOVATION
Organisational Creativity and Innovation
Name of Student
Name of University
Author Note

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ORGANISATIONAL CREATIVITY AND INNOVATION
Executive Summary
The report focuses on the importance of innovation and creativity. In the modern world,
creativity and innovation are two assets that organisations need to employ to ensure that
loyalty of the customers along with proper revenue. The report focuses on Woolworths a
retail company in Australia. The innovative service that has been developed in the report is
the ability of the company to provide innovative services to the people of Australia. The
report analyses the opportunities and potential gaps of the application of innovation in the
Australian market and the market segmentation undertaken by the company. The positioning
of the company is created and a financial plan is made to analyse the profit or loss that the
company may suffer.

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Table of contents
Analysis on possible market gap/opportunity............................................................................3
Develop value proposition of the innovative product or service...............................................6
Marketing and channel strategy approach..................................................................................8
Competitive strategy and positioning.......................................................................................13
Financial viability of the venture using break-even, cash flow and investment needs............16
Bibiliography............................................................................................................................20

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ORGANISATIONAL CREATIVITY AND INNOVATION
Analysis on possible market gap/opportunity
Innovation is one of the most and consistent idea that exists in the modern world.
Creativity and innovation exists side by side in a market so that organisations can develop it
and ensure that a competitive advantage is attained. According to Amabile and Pratt (2016), it
is necessary to analyse, the opportunities that markets may gain with the application of
innovation. At the same time, it is also necessary to analyse the gap that exists as the analysis
of the gap can help marketers to develop a mitigation strategy based on the innovation factor.
Therefore, the gaps and opportunities for providing an innovative product or service in
Woolworths can be identified.
Opportunities
Improve in the productivity: The productivity of an organisation can improve
drastically with the implementation of creativity and innovative tactics. In a company like
Woolworths, the innovation can help the company to maintain its reputation in the Australia
market. This can provide the company with an opportunity to continue its production and
services in the business market and ensure that the people of Australia do not get to predict
the products manufactured by Woolworths (Sarooghi, Libaers & Burkemper, 2015).
Therefore, it is necessary for the company to continue with the innovative tactics so that it
can provide continuous service to the people in Australia.
Reduced cost: One of the characteristic of the market of Australia is that it provides
an opportunity for maintaining reduced costs of products. Appreciation is provided to the
organisations that promote products at a reduced cost. Therefore, it is necessary that a
company like Woolworths maintain the cost of the products. According to Helfat and Martin
(2015), the reduced cost of products can help Woolworths gain more customers thereby an

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automatic increase of the revenue can be made possible. Hence, innovation can help
Woolworths not only in manufacturing the products but also while adopting different
strategies.
Increased competitiveness: Competition is stable in every business market and every
organisation need to compete with one another to gain a competitive advantage. The
competitive advantage that can be gained from innovation is that Woolworths can make the
products and services unique. Therefore, it can propel the chances of Woolworths to maintain
its dominance in the retail market sector of Australia. According to Anderson, Potočnik and
Zhou (2014), often it has been seen that the increased competition in the market results in the
improvement of the products and services of an organisation. In the case of Woolworths, the
competitiveness can help it to be more innovative in terms of products manufactured and
supplied to the customers.
Improve recognition of the brand: The improved recognition of the brand can be
done with the help of innovation and organisations can promote its products and services in a
proper manner. In the case of Woolworths, the recognition of the company as a brand
provides it with an advantage to remain competitive in the market. Therefore, with the
introduction of a product or service, the company can try to grow beyond the borders of
Australia and New Zealand (Serrat, 2017). Woolworths can promote its products in the
American market and ensure that the company gain good exposure in the global market.
Gaps
Competition: Innovative products may become hard to be protected from the
competitors. Dawson and Andriopoulos (2014) are of the opinion that the competitors can
easily replicate the innovative products. Although there are legal rules and regulations that
prevent companies from doing so, the fact that it can be replicated may provide a cause of

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concern for the organisations. Therefore, it is necessary that Woolworths, maintain the
competitive advantage that exists in the market and reduce the competition.
Uncertain returns: Innovation may not guarantee success always as the customers
may prefer following the traditional products and services. Therefore, an innovative product
cannot be relied upon entirely for increasing the revenue of an organisation. This may create
a major problem for an organisation like Woolworths, as the people are the main stakeholders
of the company. The uncertain rate of approval from the customers is also a concern for
major risk factors for the organisation. Therefore, it is necessary that Woolworths maintain a
greater timescale so that the innovative products can reach the target customers.
Loss of key staffs: The loss of key staffs can be a huge gap in the application of
innovation. This is mainly because of the fact that the employees may not receive the
innovation of the organisations in a positive manner. As stated by Auernhammer and Hall
(2014) innovation results in changes in terms of organisational policies and work policies. In
a company like Woolworths, the challenging factors for the manager are to maintain the
satisfaction of the employees and ensure that the organisation manages to continue
motivating the people. The loss of employees can mean loss of productivity for the
organisation.
Availability of finance: Finance is usually regarded as the main source of problem for
most organisations. The reason behind most organisations shrug away from innovating
products is due to the lack of finances. In the case of Woolworths finance is not be a worry as
the company has a huge market share in Australian retail market. Despite this, the gap in
innovation exists mainly due to the doubtful nature of the responses of the customers.
Therefore, it is necessary that Woolworths promote its business market in a manner so that it
can address the loss of finance.