Evaluation of the Strategies and Innovations in the Business Model

Question: Evaluate the Strategies and Innovations in the Business Model of the Companies. Answer: Introduction This report is based upon the evaluation of the strategies and innovations in the business model of the companies. It explains the actual meaning of strategy for any company and what are the key ideas behind the successful strategy. Moreover, it also explains the concept of innovation in their business model and its importance for any company. Key Ideas of the Strategy and Innovation in Business Model According to the Scholes (2015), strategy determines the direction and scope of the business over the long term that determines how resources, plans, and ideas configured to meet the demands of the markets and customers. Every company has the unique strategy to achieve their objectives and aims to create competitive advantage in the marketplace. Similarly, the innovation in the business model indicates that there is the new and unique method applies into the structure, process, and values of the organisation. Strategy and innovation are the interrelated concepts which are adapted by the organisation to make its position competitive in the marketplace. There are many examples of the company which adopts the unique strategy and timely innovations in its organisation structure to remain competitive in the market. Both strategy and innovation are the important aspects of the company and it should exist in the organisation (Slack, 2015). As per the analysis of the different academic sourc es and e-learning module, the key ideas are taken from the materials which are listed below: What is the competency level of the company (Target markets and geographic markets)?What are the unique things that company gives to their customers (status, style, modification and cost)?What are its crucial resources and capabilities that company utilizes to take strategic decisions (goodwill, advanced technology, huge resources)?How they maintain their values (R and D, uniqueness and product differentiation)? From the strategic point of view, the company needs to answer these four above key points to take strategic decisions in the market. If the company satisfies these important criteria, it means the companys position is strategically strong in the marketplace. On the other hand, business model innovation refers that the innovative concepts into the structure, process, and values to remain competitive in the marketplace (Hillier, et al., 2011). The key idea derived from the video and academic sources that every innovative business model follows four stage processes to become successful in the market. These stages are initiation, ideation, integration and implementation. In initiation stage organisation analyses the current process of the business like its target customers, offerings, and value proposition. Secondly, in ideation stage company compares its structure to different innovative models and makes the innovative business structure. Thirdly, integration refers that the stability o f the business structure according to the organisation climate whether its fits or not (Boxall and Purcell, 2011). Lastly, Implementation refers that the overall evaluation and testing of the business model and implement into the organisation. For e.g. Apple, Dell, and IKEA are the examples of strategic decisions and innovations in their business model according to changing need of the market. The key idea develops from the video regarding innovation in the business model is listed below: To review the different successful business models and implement the best factors into the current business modelImplementation of one business model at a time (Massa and Tucci, 2013)Clear communication and transparent process need to present in the new business model.In the long term, the business should set their Key Performance Metrics.Always consult with the top management regarding any change in the business structure. It is important for the success of the business model in the long run (Amit and Zott, 2012). As per the evaluation of the key ideas of the strategy and business model innovation it is identified that Apple Inc., a leading technology company that sells electronics, computer software, and online services. Moreover, it also sells the hardware products like Mac book, iPad, iPod and Apple smart watch (Tucci and Massa, 2013). The company clearly develops the strategy and innovation in their business model since inception to remain a leader and competitive in the industry. From the strategic point of view, Apple strategy clearly answers the four key ideas of the strategy to remain competitive in the industry. Apple sells their products and technologies all over the world and their target customers are mainly youngsters and businessman. Moreover, the unique company logo and stylish design with the latest technology in their products. This idea depicts the unique identity and brand value in the eyes of the customers. Thirdly, the company adopted the strong branding strategy like advertisements and logo of company attracts the customers significantly. Moreover, it also used the high technologies and different operating systems like Mac OS X advanced operating system which is totally unique from its competitors. Similarly, the company has constantly innovated their business structure through strong R and D of the market needs and challenges to deliver the quality products and services (Frankenberger, et al., 2013). Moreover, the company implements the one innovative model in their products at a time. For e.g. Apple I phone series launched by the company in different time period gap. This strategy helps the company to know the outcomes of the new business model. Moreover, the Apple also focus on the customer needs more rather than demands of the new technology. The clear communication with their customers and analyse s the changing needs of the customers and develops the products that fulfill the customer needs and create value for the company. For e.g. Apple I tunes music software is the example of changing customer needs and it creates unique value for the company (Euchner and Ganguly, 2014). Moreover, the company develops the new ideas and aligned with the company vision. The company has the strong product and service oriented culture. Lastly, company checks the consistency of the business model with its resources. Conclusion As per the above study from the various sources, it concludes that the effective strategy and innovation in business model helps the Apple to remain competitive and leader in the technological market. Moreover, it also concludes that the companies spends a huge amount of financial and human resources to continuously innovation in their business model and meet the demands of the customers in a long run. References Amit, R. and Zott, C. (2012) Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Boxall, P. and Purcell, J. (2011) Strategy and human resource management.UK: Palgrave Macmillan. Euchner, J. and Ganguly, A., (2014) Business model innovation in practice.Research-Technology Management,57(6), pp.33-39. Frankenberger, K., Weiblen, T., Csik, M. and Gassmann, O., (2013) The 4I-framework of business model innovation: A structured view on process phases and challenges.International Journal of Product Development,18(3-4), pp.249-273. Hillier, D., Grinblatt, M. and Titman, S. (2011)Financial markets and corporate strategy.USA: McGraw Hill. Massa, L. and Tucci, C.L. (2013) Business model innovation.The Oxford Handbook of Innovation Management, pp.420-441. Scholes, M.S. (2015)Taxes and business strategy. UK: Prentice Hall. Slack, N. (2015)Operations strategy.USA: John Wiley Sons, Ltd. Tucci, C. and Massa, L. (2013)Business model innovation.UK: Oxford University Press.