Running head: INNOVATION AND DEMAND AT GILBARCO VEEDER-ROOT 1
INNOVATION AND DEMAND AT GILBARCO VEEDER-ROOT 2
The Relationship between Innovation and Demand at Gilbarco Veeder-Root
Background and Introductory Information
Fortive is a conglomerate made up of many smaller businesses operating in diverse industries. Fortive is broken into two segments: Professional Instrumentation and Industrial Technologies. The Professional Instrumentation segment is made up of companies that offer Field Solutions, Product Realization, and Sensing Technologies. The Industrial Technologies segment is made up of companies that offer Automation and Specialty products, Franchise Distribution, and Transportation Technologies, including the Gilbarco Veeder-Root Company.
Fortive was established in 2016 when Danaher Corporation split into two separate, publically traded companies. The Danaher name was retained for the larger parent company and the new Fortive business was created for the companies in the Professional Instrumentation and Industrial Technologies segments. Fortive remains deeply rooted in the Danaher business culture, adopting the globally renowned Danaher Business System (DBS) to the new Fortive Business System (FBS) as the core of how all companies under the Fortive umbrella operate. The foundation of both DBS and FBS is one dedicated to continuous improvement, innovation, and customer satisfaction (About US, 2017).
The Concepts of Innovation and Demand
Innovation is defined as the first commercial application of a new technology. An innovator is a firm that is the first to apply a new technology (Behravesh, 2014, p. 322). Fortive claims to be “the essential technology company.” The company boasts that their vision is to develop and provide technology for “the people who create, implement, and accelerate progress” (About Us, 2017).
Supply and demand are basic principles of economics. Demand is simply how much of something is needed or wanted by those willing to pay for it. The amount demanded is the specific quantity that people will buy at a specific price point. As the price increases, demand may go down. Or if prices fall, the demand may increase. In other circumstances when demand needs to be increased, prices may be cut dramatically, like with a sales promotion, to achieve the necessary demand. Price is not the only thing that influences demand. Demand is also impacted by the quality of the product, the number of available substitutes, and things that generally attract customers, such as advertising, free gifts or deals for bundling products together (Supply and Demand, 2012).
Supply and demand tend to go hand-in-hand. Supply is how much of a product or service the market can produce or offer. Supply can also impact price. Generally a low supply and a high demand lead to increases in price. Conversely a greater supply and a lower demand usually lead to price cuts. In real life situations, the...