Achieving Business Success: Market Positioning & Strategies - Essay Sample

Introduction

Lifting the prospects of a business to success status remains one of the most daunting and important aspect of business management and operation. Islami et al. (2020) averred that there exist numerous ways and methods by which a business can achieve success and position itself in the market for long term achievement. Among them are market positioning and business strategies (Leonidou et al., 2017). These two remains critical to eventual and long term success in business and for wider appeal from the wider market. This paper will explain the business strategy proposal and market positioning for Ecovative Design Company, a company focused on utilizing mushroom technology to provide sustainable alternatives to diverse products.

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Ecovative Design focuses on providing sustainable alternatives to building materials, packaging, and plastics by the use of mushroom technology. The company has its headquarters in Green Island, New York. Some of its productions include structural biocomposites, protective packaging, and thermal insulation among others. The company has partnered with various high-tech companies such as the Environmental Protection Agency, National Science Foundation, and the National Collegiate Inventors and Innovators Alliance. Through these partnerships and engagement, the company has established a wide network of collaboration thus positioning itself strategically in the market. However, due to the need for wide coverage and the development of a global appeal, the company needs to establish a robust business strategy that will elevate its operations and success.

Business Strategy

Firstly, Ecovative Design Company needs to establish a global growth plan by building a strong solid foundation, developing an international appeal image and plan, breaking down cultural barriers, and differentiating its unique products. Expanding its business appeal and products across the globe will enable it to conquer local and international markets (Richard, 2000). Second, it needs to enact an intensive and strategic growth plan. The growth strategies will help it define its varied unique products in local and international markets thus ensuring that it remains relevant in its production plans and market penetration (Alessandra et al., 2019). Ecovative Design Company continued success and innovation remains an indicator of its possible fulfillment of its strategies.

Through an intensive growth strategy and generic strategy, Ecovative Design Company can further help it grow beyond local markets. The generic strategy should entail a combination of a broad differentiation generic plan and leadership generic plan (Ahmed et al., 2016). Cost leadership involves reduction of costs of selling and operation prices. Broad differentiation generic strategy needs coming up with product and business uniqueness that ensures it maintains a competitive advantage in the local and international market (Amorim et al., 2019). The company's generic strategic goal needs to focus on minimizing production expenses with the primary purpose of attaining cost leadership. At the same time, its strategic goal objective will enable it to focus on broad differentiation as a critical aspect of its generic plan. Through innovation, the company will provide its consumers with attractive and unique products in all its different market sectors.

Market penetration should remain its intensive growth strategy. Through this strategy, Ecovative Design Company will attract and reach out to more consumers within its current and future markets. Ecovative Design Company will have to ensure that it has a unique and attractive product for each market segment. With its unique bioengineering and mushroom technology, the company has a strong head start in penetrating new markets. Product development should form the second intensive growth strategy. Through this strategy, Ecovative Design Company will attract new consumers to its varied products. The company should use this approachby way of rapid innovation especially in establishing mushroom as its primary raw material. Ecovative Design Company remains known for its innovative processes with a sharp focus on the environment. Such an approach will support its differentiation generic strategy through the use of innovative raw materials such as mushrooms that remain unique and have advanced advantages.

Market Positioning

According to Willems and Tjeerdsma (2016), market positioning refers to a company's ability to inspire customer's perceptions and views. The concept entails putting the product/service brands in customer's minds and distinguishing from other services and products in the market, especially those of its rival competitors (Willems and Tjeerdsma, 2016); (Neirotti et al., 2016). Leonidou et al. (2016) maintained that the primary purpose of market positioning entails establishing an image brand or identity, revealing what a company offers, what they value, and who they are in the market. Ecovative Design Company has a unique production and place in the market. The company remains well placed in the market by way of having grand unique products that find applicability across a wide market segment. There exist varies market positioning strategies and they all depend on the primary objective of a company, its mission, and vision within a market segment.

Ecovative Design Company should compete on unique value placement and innovation. The company should avoid price wars in the market and focus solely on invention. With its Mycelium Foundry, it focuses more on alternative forms of leather, packaging materials, and alternative meat products. With these as its primary engagements, the company needs to steer customer's attention to taste and new emerging trends in innovation. Ecovative Design Company should promise its customers value for their money regarding great unique products and brand name that comes with creativity and originality. The company should make a strong mark and stand on taking advantage of its innovation prospects and technological changes that come with understanding new products in the market.

Conclusion

Ecovative Design Company has the advantage of combining technological advances with locally available materials to produce unique cool products. The company should enact a global outreach strategy that spans across countries. The intensive growth strategy and generic strategy will enable it to appeal to new market frontiers in addition to attracting potential markets and customers. Through its differentiation generic strategy, the company will surpass domestic competition to embrace the wider global market for its future prospective growth plans. In terms of market positioning, differentiation generic strategy should establish itself as an innovative and technology oriented company focused on unique and beautiful products.

Reference List

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Alessandra, C., Luca, G., Minola, T. and Boris, M., 2019, October. Appropriability strategies and policy support: evidence from a representative sample of Italian young innovative companies. In Strategic Management Society's 39th Annual Conference (pp. 1-6). US. https://aisberg.unibg.it/retrieve/handle/10446/152926/342766/Extended%20abstract_SMS%202019_draft.pdf

Amorim, T., Vogelsang, A., Pudlitz, F., Gersing, P. and Philipps, J., 2019, May. Strategies and best practices for model-based systems engineering adoption in embedded systems industry. In 2019 IEEE/ACM 41st International Conference on Software Engineering: Software Engineering in Practice (ICSE-SEIP) (pp. 203-212). IEEE. https://dl.acm.org/doi/pdf/10.1109/ICSE-SEIP.2019.00030?download=true

Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter's generic strategies to firm performance. Future Business Journal, 6(1), p.3. https://link.springer.com/article/10.1186/s43093-020-0009-1

Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal drivers and performance consequences of small firm green business strategy: The moderating role of external forces. Journal of business ethics, 140(3), pp.585-606. http://eprints.whiterose.ac.uk/87547/2/JBE-Eco-friendly_strategy%5B1%5D.pdf

Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers' reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning. International Journal of Information Management, 36(6), pp.1133-1143. https://www.sciencedirect.com/science/article/pii/S0268401216301049

Richard, O.C., 2000. Racial diversity, business strategy, and firm performance: A resource-based view. Academy of management journal, 43(2), pp.164-177. https://www.southalabama.edu/mathstat/personal_pages/mulekar/BUS622/Richard-2000.pdf

Willems, P. and Tjeerdsma, B., 2016. The age of cool biobased materials: a new positioning strategy. Chimica Oggi-Chemistry Today, 34, p.4. http://www.teknoscienze.com/Contents/Riviste/PDF/CO4_2016_low_62-68.pdf