Competing Business Model Innovation - Free Samples to Students

Question: Discuss about the Competing Business Model Innovation. Answer: Introduction: The analysis of video develops new ideas, concepts that are valuable in understanding the meaning of strategy. The whole video talks about strategy, what is strategy? Strategy refers to as making a plan or method for the achievement of a goal or solution to a problem. The term is derived from the Greek word which means The art of General (Campbell, Edgar Stonehouse 2011). The ideas drawn from the video shows that how strategy was implemented at ancient times and what is the difference between the ancient strategy and modern strategy. Comparing both, earlier strategies were made by ruler or king; the goal for making strategy is to win the battle but modern strategy includes different goals and objectives of organization (Kryscynski 2015). Each and every organization takes care of four questions that generally arise while making strategies those are:- Where do we compete? This question generally arises when company is thinking for the new set up in the market or when company wants to introduce new product in the market. What unique value do we bring? This question arises when company is manufacturing product but wants to add something new to the product. What resources/capabilities do we utilize? A resource plays a vital role in manufacturing of any kind of product and company should have effective capabilities to identify and utilizes those resources effectively. How do we sustain unique value? Manufacturing a product is not enough to sustain in the market. Company should provide good customer experience, which helps the company to remain in the market. Benefits of the strategy applications Strategy is the part of day to day activities; personally, if we plan to visit somewhere we need to make strategy for that also such as; where to go? , With whom should we go? , what all we need to carry with us? And definitely we have to search for the places where to stay? These questions need to be answered before going for any trip. This is strategy; similarly there are many other things for which we need to plan. Same like this many companies follow strategy for setting new business in the market. Example: - Amazon, a well-known e-commerce company, who started business with selling online books and later on, they started making strategies that they should add new products. Then they started thinking for what all they can provide to customer, but that totally depends on the demand of customer so they started doing survey and tried to analysis the market conditions and accordingly they made strategy for coming up with products. At present time amazon is one of the leading e-commer ce company who have variety of products and now they are selling those things which can be sold online (Shaughnessy 2012). This how company started making different strategy and achieved the desire goal which ultimately leads to the earning profit. Now at present they have a good brand value, people are recommending their brand as they have developed the trust in customers for their brand. This shows strategies are good for the company (Kotler Rath 1984). The analysis of video, make you understand the importance of business model innovation. This video gives ideas about the business model innovation, success through innovation ideas, for innovative ideas there is a need of advance technology. Each and every business model innovation have some steps that are; initiation, ideation, integration, implementation (Gallen 2013). Over here Business model is based on these steps. Initiative means starting up any new company or introducing the product or in other words it is the beginning. Ideation refers to as the process in which company need to think for the best idea and thoughts which can help business to achieve goals. Integration: it says that each and every company there is a need of consistency or plan for expanding the business of the company. Implementation: it says its final time for the execution of the plan or strategy. In the current market there are many companies who failed to achieve their goals as they did not follow the step s of business model which leads to success (Routlege 2014). There major focus was on achieving or controlling day to day business activities due to which they missed the future success. So this shows that each and every firm needs to think for those innovative ideas which can actually impact their future growth. Every company needs to think for competitive scope, customer needs, market factors etc. these factors can affect the strategy made by the company (Remane, Hanelt, Tesch Kolbe 2017). Benefits of the strategy applications Innovation is the one of the important part of day to day life, on weekend I generally go out to have fun with friend we go to McDonalds to have burgers on that day. How innovative there models are they have made combo packs at low prices which includes burger, french-fries, cold drinks. This helps to grab the attention of customers and the result in the increase the sale of the company. With the increase in the sale company will be able to earn more and more profit out of it. This innovative business model leads too many positive things such as increase in brand value, customer satisfaction and trust towards the brand will increase. From an organization point of view also business model innovation is must. Example: - E-bay, an e-commerce company, eBay is famous for its innovative auction style shopping format. First, eBay offers GSI service, which helps the companies to put their inventory online. Later eBay come up with new innovative ideas which became convenient for the customers . For browsing the site and for seeing the product, buyers dont have to pay any additional amount for that. Individual or group of people who are looking to buy the product immediately can easily visit the website and they can search for the product and can participate in bidding process to buy it at the best price (Velamuri, Comberg 2017). These innovative ideas have come into existence. This company innovative model shows how they started with the initiative process business model and ended with implementation. References Gallen, St 2013, Business Model Innovation, viewed on 24th April 2017 https://www.youtube.com/watch?v=B4ZSGQW0UMI Kryscynski, D 2015 what is Strategy, viewed on 24th April 2017, https://youtu.be/TD7WSLeQtVw. Campbell, D, Edgar, D, Stonehouse, G 2011, Business strategy- An introduction, Third edition, Palgrave Macmillan, United Kingdom. Velamuri, VK Comberg, C, 2017, The introduction of a competing business model: The case of eBay, International Journal of management, vol.73, no.3. Routlege, AA, 2014, Business model innovation; concepts, analysis and cases, First edition, New York. Remane, G, Hanelt, A, Tesch, JF, Kolbe, LM 2017, The business model pattern database- A tool for systematic model innovation, International Journal of innovation management, vol.21, no.1. Shaughnessy, H 2012, Why Amazon succeeds, viewed on 29th April 2012 https://www.forbes.com/sites/haydnshaughnessy/2012/04/29/why-amazon-succeeds/#6b0c54dd385a Kotler, P Rath, A 1984, Design: a powerful but neglected strategic tool, Journal of business strategy, vol. 5 no. 2.