Competitive Strategy and Business Model Innovation

Question: Discuss about the Competitive Strategy and Business Model Innovation. Answer: Introduction: Strategy is a method in an organization that improves and implements various plans to achieve the objectives and aims. Strategic management is a continuous process. According to Lasserre (2012), strategic management helps to identify the target customers and their preference. Strategy needs goals, mission statement, objectives, guide and values to check the opportunities. Goal setting help the manager to make strategic decisions like how the target can be met and larger the revenue. Goal setting helps to identify the plans to compete in the competitive and international business market (YouTube. 2016). Before applying strategy, it is necessary to know about the strength and weakness of the organization. The organization needs to analysis both the internal and external factors like competition and implementing technologies. Strategy formation The concept of strategy formation develops particular actions to enable an organization to achieve the goals. Strategy formation requires information from analysis, priorities and decision making to point out issues of the organization (Ward and Peppard 2016). Strategy implementation puts the specific strategy to meet the organizational aims. The concept is to bring together all necessary resources to bring strategic plan. The organizations should put strategies via developing programs, policies and budgets to achieve financial, HRM resources and operational aims. After implementation of strategies, it is necessary to monitor the organizational strategies. Strategy monitoring develops the determination of strategies. It is necessary to monitor the plans of working areas to measure and compare the predictable results (Lasserre 2012). By monitoring, the organizational managers are able to know that when and how they have to implement the plan to change their strategies to change the trends. Application of Key ideas: Biopharm is a renowned pharmaceutical company in Australia that is now the leading pharmaceutical organization of the world. To achieve the position in the global market, Biopharm has implemented strategies. As Biopharm is a pharmaceutical company, it is a part of health care and very profitable company in Australia. The strategic management of Biopharm helped the citizen and government of Australia. The goal of the Biopharm was to achieve the fame in international pharmaceutical market. According to Keshavan et al. (2016), the mission statement and objectives of Biopharm was very clear and the guidance provided them opportunities to achieve the goal. The goal setting helped the manger of Biopharm to create the strategic decision. The strategic management helped to meet the target and gain more profit. Strategic management helped Biopharm to identify the competitors and competitive market in global market. Before applying strategic changes, the management of Biopharm has identified t he internal and external factors to enter into the international market. The strategic management helped Biopharm to develop specific actions of the company to grab the aims. The concept of strategy implementation brought the strategic plans to an action. Biopharm achieved the strategic plan by various programs and implementation of policies. Biopharm has strong strategic management that helped the company to develop the productivity, quality and service (Lasserre 2012). Business model innovation helps to develop new concepts that support the financial viability of an organization. Financial viability includes mission, bringing process of the concepts to achievement. Key ideas of Business Model Innovation: The goal of business model is to improve product value and deliver to the particular customers. Business model innovation helps to the target customers and the offering products to the customers (YouTube, 2016). It also helps to know the creation of value proposition and the generated revenues. The four steps of Business model innovation are initiation, ideation, integration and implementation. At the initiation steps, the company needs to analyze the recent Business model to identify the target customers and offering products. Ideation steps provide idea about the product creation. The third step helps assume the basic logic of the industry and to generate idea of the result like revenues. In the last step, the company needs to implement business model innovation to get effective outcomes. As opined by Afuah (2014), an organization can take idea of business model innovation from other organization but should not copy the same model innovation. Coping business model innovation of ano ther organization can give profit but that will be temporary. Massa and Tucci (2013) suggested that when an organization plans to apply business model innovation, they need to observe the other companies that are already using the model. The company management needs to remember the soft factors of the company before applying business model innovation (YouTube. 2016). Application of Key ideas: At the beginning of 2000, Apple made changes by applying business model innovation successfully. Business model innovation gave competitive advantages to Apple. However, business model innovative has several systemic risks. This helped to stay in the competitive business market and influence the growth. Apple is the number one international innovative company that has launched the touch pad phones for the first time. Apple has various innovation strategy including stylish new products, services and features. Apple introduces the products like iPod, iTunes and iPhones. Before 2000, Apple offered just computer desktops in market. According to Massa and Tucci (2013), iPod and iTunes are music devices, which can be used to download music. iPhone was another device that made huge profit for Apple. Apple gained huge profit by innovation of iTunes and iPods. iPhone had a huge acceptation in the mobile phone market globally. It was an innovative idea to launch smart phones with touch pad. Af ter implementation of business model, the financial state of Apple also increased. It took the leading position of smart phone in the mobile market. Apple has invented new software that has strong business model. As stated by Slack (2015), new product innovation and business model innovation provided a brand new market that is 30 times bigger than the original market to Apple. Business model innovation raised the traditional shares of Apple in the computer market. Apple has successfully achieved the customer loyalty. New generation customers became attracted to iPods, iPhones and iTunes, which is very profitable to Apple. References: Afuah, A., 2014.Business model innovation: concepts, analysis, and cases. Routledge. Keshavan, M.S., Lawler, A.N., Nasrallah, H.A. and Tandon, R., 2016. New drug developments in psychosis: Challenges, opportunities and strategies.Progress in Neurobiology. Lasserre, P., 2012.Global strategic management. Palgrave Macmillan. Massa, L. and Tucci, C.L., 2013. Business model innovation.The Oxford Handbook of Innovafion Management, pp.420-441. Slack, N., 2015.Operations strategy. John Wiley Sons, Ltd. Ward, J. and Peppard, J., 2016.The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley Sons. YouTube. (2016). Business Model Innovation. [online] Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed 20 Dec. 2016]. YouTube. (2016). What is Strategy?. [online] Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed 20 Dec. 2016].