Thursday, December 5, 2019
Competitive Strategy Long Term Support
Question: Discuss about the Competitive Strategy for Long Term Support. Answer: Introduction: The strategy is the scope and direction of the organization for the long-term that supports in the achievement of the goals of the organization through the configuration of the resources in the challenging environment, to fulfil the customers need and stakeholders expectations. Evaluation of the strategic plan: the first step in the strategic implementation is to go back and make sure that the organization knows about the plan (Davies, 2000). Review the whole plan very carefully and highlight the points or task that are really challenging in the strategic plan. Development of a vision for the plan implementation: the vision of the organization is the achievement of the goals step-by-step or the outlines of the objectives that need to be completed through the strategic plan (Davies, 2000). Everyone in the organization should what is the goal of the strategic plan. Selection of the team members: In this step, team members and leaders are selected according to their skills for the imple mentation of the strategic plan. Meeting schedule to discuss the progress: create the list of the goals and objectives that are to be accomplished through the strategic plan. Whether the strategic implementation process is on schedule, behind schedule or ahead of schedule, the discussion on the progress should discuss to know that there is a need for any change (Henry, 2015). Involvement of the upper management: the executive of the organization should have the information on the progress of the implementation of the strategic plan. The important key ideas of the strategy are how to compete and develop a position in the competitive world through their unique and affordable products. The strategy supports to survive effectively in the competitive world. Where the company wants to compete, what are the resources used by the company, what unique value the company provide to the customers, how the company will sustain the unique value are key ideas of the strategy(Nachum, 2012). IKEA Strategy Example The organization that gains profit and success through the implementation of the strategic ideas is the IKEA Company. The IKEA Company is the Swedish Home furnishing company established in 1943 by Ingvar Kamprad. At the age of the five, Ingvar started the business of selling matches in his neighbourhood. Later on, he extended the business through selling greeting cards, flower seeds, Christmas tree decorations and ballpoint pens and pencils(Nachum, 2012). Now, he is selling the home furnitures. The mission and vision of the IKEA is to provide the chance to customer to decorate their homes in an affordable price. The IKEA company thinks that its 1,50,000 employees are the strength of the company and its employees provide the uniqueness to the company. The strategy for the same vision and mission supports the company to compete with their competitors in the target market. The Wrangler make the changes in the strategies to gain to the competitive advantage in the other brands such as Es pirit, Benetton, Lacoste, Diesel, Burton, Zara, Van Heusen, etc. For the application of the key ideas of the strategy, the company has to do the SWOT analysis that is the analysis of the strengths, weakness, opportunities and threats to the company. The company has to do the PEST analysis and Posters five force model analysis to know the current situation of the company. Then, the company has to set the goals and objectives according to the SMART acronym that is the goal and objectives should specific, measurable, achievable, realistic and time. Then the company has to develop the strategic plan. After the development of the strategic plan, the company implement it and evaluate the progress of the strategic plan. Business model innovation Business innovation model is visualization as a process that realigns the building blocks in an innovation in the business model. A business model mainly comprises of two essential elements; the operating model and the value proposition. Both of the elements have the three sub-elements. As the development of the good business model innovation is the important part, but, also it strict implementation is a necessary part of the success of the business innovation. First, the experimentation is essential. The business needs to test the business model constantly and time-to-time modification in order to achieve value proposition potential. Second is to develop the separate vision from the current business model. Many of the times, the organizations mix the two structures; current and the innovative (Taran, Boer and Lindgren, 2015). For this purpose, the excellent marketing team and the human resource team is needed, those have little interaction with the current business model. The last step is to spend money on the business model innovation. The organization should consider that this requires capital, not the budget. The key ideas of the business innovation are the understanding of the customer values and providing them the same in the lowest price through the new business model. Innovation comes through the combination of two or more ideas in the innovative way. Innovation is the new idea and mostly uses the technology that considers as the useless and waste. The key ideas of the innovation business model uses who are the target customer, what the company wants to do for the customer, value proposition the company wants to provide the customer and revenue use for this purpose (Andries and Debackere, 2013). Innovation Example The Apple Company is the company that is benefitted through the innovation in the business model. The Apple Company demonstrated that business model innovation is not just a service, product or technological innovation (Lindgren, 2012). Any innovation can become business model innovation when the two or more elements of the business model intervened to deliver the value in a new way. As the development of the good business model innovation is the important part. The apple company has innovated the business model according to the value proposition of its customers. The apple company innovation business model supports the redesigning of the product and production of the varieties of the product according the desire and needs of the customers. For the innovation of the new business model four steps should be followed Initiation, ideation, integration and the last one implementation Initiation step: the analysis should do on the current business model Ideation step: For the development of the new innovative business model, there should comparison of the current business model with the 55 innovative business model Integration step: in this step, there is the consistent checking of the new business model Implementation step: there should communication on the new business model with all the employees of the company and before the implementation, there should pilot testing of the business model The strategy and business model innovation support the growth and progress of the business in the competitive world. Both the processes work for the satisfaction of the customers need and expectations of the stakeholders and employees from the organization. However, the proper implementation of the strategy and business model innovation is necessary for the business growth. Therefore, the companies have to follow the proper procedure for their implementation. References Andries, P. and Debackere, K. (2013). Business Model Innovation: Propositions on the Appropriateness of Different Learning Approaches.Creativity and Innovation Management, 22(4), pp.337-358. Davies, W. (2000). Understanding strategy.Strategy Leadership, 28(5), pp.25-30. Henry, C. (2015). Strategy in the news.Strategy Leadership, 43(2). Lindgren, P. (2012). Business Model Innovation Leadership: How Do SMEs Strategically Lead Business Model Innovation?.IJBM, 7(14). Nachum, L. (2012). Global comparative strategy.Global Strategy Journal, 2(1), pp.92-95. Taran, Y., Boer, H. and Lindgren, P. (2015). A Business Model Innovation Typology.Decision Sciences, 46(2), pp.301-331.
Posted by Marley See at 4:22 AM