Bussiness. What is Creative Destruction? Business & Marketing Essay

Creative Destruction
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What is Creative Destruction?
The world we live in is full of challenges, and it has become necessary for brands and companies to struggle for their survival on daily basis. Almost all organizations, irrespective of their geographical locations and backgrounds, tend to be innovative and bring forth extraordinarily special products. When a company or brand fails to come up with the expectations of its customers and all of its creatively designed products are rejected in the market, then the phenomenon is known as creative destruction. Joseph Schumpeter was the first to use the term “creative destruction” in 1942 (Carayannis, 2014, p. 184). According to him, the innovation of a company decides its fate and acts as a powerful marketing tool. However, sometimes this innovation fails and it is where creative destruction begins. It is also believed that creative destruction is one of the most complex processes of industrial transformation. It occurs when the businesses introduce innovative products in the competitive and monopolistic markets, and those products are not up to the mark or contain some flaws. In such circumstances, they are not only rejected by the consumers but also the brand’s reputation is damaged (Carayannis, 2014).
Companies that have Been Victimized by Creative Destruction
In order to increase their client base and make a lot of money, every brand and company bring forth innovative products once in a while. However, not all of them achieve success as the innovatively designed and created products are either expensive, contain flaws, or are not as per the requirements and expectations of customers. Compared to other transportation companies, Uber took a little time to expand its network and to achieve significant success worldwide (Sc...