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Management: Innovative Companies
Innovation is mainly brought by the emergence of a need or the lack of something relevant. Many companies have innovated concepts that have propelled them both within their industry boundaries and globally. Although some innovations are founded on the other existing concepts, other companies have managed to innovate by perceiving issues from a completely different perspective. The current paper concentrates on Amazon, the Coca-Cola Company, and Safaricom which ranked second, fourteenth and ninth respectively in the 2012/2013 innovative companies list.
In 2013, Amazon ranked second as the most innovative company of the years up to 2012 (Kratochwill). The organizations mission is to be earths most customer-centric company, where customers can find and discover anything they want to buy online, and endeavors to offer its customers the lowest possible prices (Amazon.com Inc.: Financial Statements for Amazon.com Inc. 2). The organization mainly deals with the sale of books, music, movies, games, auto and industrial, outdoor and sports, beauty and health, shoes and jewelry, apparel, grocery, baby and kids, toys, home and gardens, computers and electronics, digital downloads amongst others.
The organization was positioned as one of the most innovative organizations of the year due to the same-day shipping strategy it introduced to the U.S. market. There were seven main markets. This concept was introduced three years prior to 2013 (Kratochwill 1). Although companies such as Walmart, eBay, and Google have tried to glimpse the same concept, they have not reached the standard set by Amazon. One of the most challenging issues affecting businesses that have to deal with shipping services is delivery of products to the customers within the shortest time possible. Amazon has set the pace at the same day and time frame was set the next day. USPS, FedEx, and UPS, which are shipping services, have to cope with this pace set by Amazon.
Walter Loeb, through Forbes, takes this innovation a notch higher and indicates that the Sunday Delivery ability is the actual concept that set the bar even higher than the others (Loeb 1). Sunday is a day mainly perceived as a day of rest. A significant number of consumers are resting at their homes. Delivering goods when they are present not only meets a target but it also greatly satisfies a customer.
In its innovation spirit, Amazon acquired Kiva Systems, a robotics maker, which makes robots that reduce processing time by twenty minutes. The company was acquired for $775 million in 2012. The international shipping hub located in Jeffersonville, Indiana, also plays a key role in realizing this concept. The hub was announced in March 2012 (Kratochwill 5). This was followed by another two warehouses in New Jersey in May of the same year. The reduction of shipping costs and opening of more warehouses and distribution centers have made this innovation successful. This innovation propelled the company to increase its revenues from $48.1 billion in 2011 to $61.1 billion in 2012 (Amazon.com Inc.: Financial Statements for Amazon.com Inc. 1). Although the innovation was successful in increasing the organizations revenues, other circumstances contributed to it incurring losses.
The customers feedbacks are positive. Many customers are grateful for this concept since such people as students can access books within the shortest time possible. A student who is supposed to handle a quick assignment in two or three days can order the book and complete the assignment in time. A consumer holding a party in the evening can order music and electronics in the morning and then use them during the evening party. The most remarkable aspect of this concept is that it has managed to propel the organization ahead of the competitors by a significant margin.
The Coca-Cola Company ranks fourteenth when it comes to innovation. The organizations mission is to refresh the world, inspire moments of optimism and happiness and create value and make a difference (The Coca-Cola Company 2). According to Fast Company, the Coca-Cola Co. is ranked at this position because of turning a gigantic brand into a nimble marketing collective (Champagne 1). Although the company is well-known all over the world, the company refrained from perceiving the company from a global perspective but rather from a local one. This innovation is mainly evident in the advertisement arena. The company has embraced online advertising and innovated ways of engaging in shareable and delightful content online. Such step earned the organization 5% addition to global sales.
In 2012, the company message that depicted Coca Cola as one that brings joy was the most viewed. It was based on the concept of putting together random shots made via a normal camera. In Brazil, the coke machines allow consumers to access mobile data credits. In support of major sporting events such as the Olympics, the organization shared the Anywhere in the World concept which gave consumers the homely concept even though they were in a strange land (those who attended the Olympics). The innovations reach the consumers as the organization intended. Allowing consumers to look at the company from a nimble perspective brings the company closer to home.
The use of local athletics in the America-based advertisement or African themes and natives in the Africa-based advertisement is an attribute of this innovation. The company manages to make consumers have a sense of belonging and sharing. Through downsizing the company from the global giant as it is known, the Coca-Cola Company focuses on the people who, in turn, give their attention to the company.
Safaricom ranks ninth as far as innovation is concerned. Its mission is to become a leading integrated communications company in Africa (Safaricom 1). The innovated concept that placed this organization in this position is one that bridges the gap between patients and doctors since the company is based in a developing country. The Company is well-known for other innovations such as the M-Pesa mobile money transfer service that were first successfully incorporated by the company globally. This service has allowed consumers to transfer money from one point to another with the simple use of a phone.
In this doctor-patient communication innovation, patients can contact doctors dialing the number 1525 (Federer 1). This concept was realized in 2011. The doctor can be called anytime as long as the agreed call charges are handled accordingly. It allows persons in remote areas to access the services of a doctor even without queuing in hospitals or paying large amounts of money. Consumers are expected to pay Ksh. 20 per minute (a dollar is approximately Ksh. 80) in order to access this service. Due to such innovative concepts, the organization recorded a 19% increase in its revenues (Safaricom). The most fulfilling issue of the company is the incorporation of all its innovations so that one is dependent on another. For example, the previously innovated mobile money transfer service could be used to make payments for the doctor call services.
These organizations are expected to prosper in the future. History has indicated that they are characterized by the spirit of innovation, hence their strength in their respective markets. This spirit will only fail if there is bad government and failure to support the respective stakeholders such as the employees. It is evident that a motivated human resource is highly innovative.