Essay Sample on Strategy and Business Innovation Model

Date:  2021-04-22 18:03:16
3 pages  (740 words)
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Vanderbilt University
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Essay
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

In the current business world, it is important to understand what it means to have an ideal strategy in any organization. The term Strategy comes from the Greek language and it means art of general war. The business entities nowadays view the market as a battlefield because of the competitive nature. Therefore, the organizations involved try as much as possible to come up with the best strategies to compete favorably with others (Porter, 1966). The people tasked with managing the businesses formulate the suitable tactics, come up with clearly defined goals and tasks with the aim of delivering strategies that are perfect for their organizations.

The degree to which the plans are perfect depends on the consideration of four major elements. The first involves determining the factors of the product itself such as cost as affects the ability of the firms product to compete with similar one. The second element to consider is the means of maintaining the strength of the product or service in the marketplace. Thirdly, the management has to develop a mechanism of building the reputation of their item for consumption in the market by use of the appropriate resources. Lastly, there is need to ensure that there is an approach in place that helps maintain the value accorded to the product among the customers. We can use two companies as examples in this activity. These are IKEA and ALDI. IKEA, which is retailer for furniture, keeps a unique position in the market by use of the perfect strategy directed at ensuring that it is accessible to the buyers (Lutz, 2015). With this tactic, they generate good profits and satisfy their customers by providing convenient storage space. In the case of ALDI, they are a fitting example to show the use of strategies because through their plan to position their product as a cheaper alternative, they center their attention on quality and accessibility of their creation in the marketplace (A. Hogan). The model that ALDI has adopted aims at appealing to customers and its name ALDA, which are initials for; Awareness of the item for consumption, Interest generated, Desire created and Action taken. Cole, which is the competitor to ALDI, uses a similar approach but they are unable to match them. In conclusion, it is important to note that different strategies lead to dissimilar results and therefore it all depends on how an enterprise intends to attract its customers.

Business Innovation Model

The models for business innovation are more visible in the current markets because of the all-round competition. The process starts with the technology that exists and the product that on offer in the market. The ability to innovate is crucial to the prosperity of any firm and this is possible if there is understanding of the market on target and how to generate returns from the result of production. In order to understand this process, we consider the 4 Is which are, initiation, ideation, integration and implementation (M.D. Jong & M.V. Dijk, 2015). Initiation is vital when coming up with the innovation model for businesses because it helps analyze the one that is right for the organization. Ideation process involves making comparison between the business model chosen and that of another company and analyzing the value of the product of the two firms. Integration entails the consideration of the target market and checking the effect of the model on aspects such as revenue and value. The implementation phase has to cover both the quality and quantity features for the model to work. For this process of implementing to be successful, it should be done one model at a time; there should be communication on the new model and the reasons for the change; key indicators of the performance should to be highlighted; there should be commitment from the top management; and there should be a single model available for use.

The business innovation model is useful to an organization it gives focus on its design and ensures that there is following of the strategies in order to achieve the set goals. The success of most companies comes about as their success in implementing this model (Plantes, 2009). A good example of innovation model success currently is Apple. On the other hand, Nokia, which was initially, has been experiencing failures due to the innovativeness of technology used by competitors. Therefore, it is clear that the benefits that come with an innovation model for businesses are so many to overlook.

 

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