Search

Forbes: The Black Friday effect: Harnessing scarcity to drive innovation

20 Nov 2024
The power of scarcity is evident during any Black Friday sale and the Christmas shopping season, as limited-time offers, early Black Friday sales and subsequent online shopping drive consumer urgency and increase demand.

Originally found at Forbes

Is scarcity the mother of invention? Every year, Black Friday looms as the biggest spectacle for major retailers and online retailers alike, kicking off the holiday season with a whirlwind of best deals that stoke our desire for the "limited time only" offers.

But beyond the frenzy of Black Friday promotions, there's an untapped lesson for leaders in the urgency that Black Friday shopping inspires —scarcity can be a powerful catalyst for innovation.

...Scarcity teaches the art of prioritization. When resources are tight, every decision counts. This mindset enables you to focus only on what truly matters, cutting away the unnecessary and honing in on what's essential for progress. A study published in the Academy of Management Journal found that companies facing resource limitations often become more efficient by necessity. Scarcity compels them to prioritize projects with the highest potential return on investment, leading to better allocation of resources and improved performance.


Continue reading the original article at Forbes.

Read the original research in Academy of Management Journal.

Learn more about the AOM Scholar and explore their work: