Management

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//As per the directions, in this paper we will discuss the role of creativity in different functional areas in maintaining competitive advantage. We will, further discuss about the traits of creative thinkers, mental model, styles of creative intelligence, and disruptive innovation.//

Creativity in Maintaining Organization's Competitive Advantage

An organization can use creativity as a strategic tool to maintain competitive advantage. The four areas where creativity can be applied to gain competitive advantage are the 4Ps of marketing i.e. product, price, place (distribution), and promotion. A firm can achieve a sustainable competitive advantage by adopting a differentiation strategy. In a differentiation strategy, an organization tries to differentiate its products or services from those which the competitors are offering. Differentiation can be achieved by incorporating creativity or innovation into the products. This can be done by adding extra features to the products or services which are beneficial to the customers. Creativity can be applied by designing innovative pricing methods that serve the needs of both the organization as well as the customers. Competitive advantage can be gained by using skimming strategy which is aimed at maximizing profit margins, followed by a penetration strategy which is aimed at capturing a larger market share by lowering prices. A firm can be creative in designing its distribution channels, for example, it can increase its revenues by eliminating distributors and reaching directly to its customers by opening its own retail stores, provided it is cost effective and thus, can gain competitive advantage over its competitors. Promotion means getting marketing messages across its potential customers. Creativity can be used extensively in advertising and branding, which is a source of competitive advantage (Loudon et al., 2004).

Traits of a Creative Thinker

Flexibility and Sense of Humor - Creative thinkers often see humor in problems, and their thinking is very flexible in nature and does not limit to any one field. Creativity is at its best when it is not taken too seriously. Endless possibilities can be considered when a person is in a humorous mood or when he can shift ...