Key Strategies Extracted from E- Learning

Question: Discuss about theKey Strategies Extracted from E- Learning. Answer: Introduction: This assignment talks about the various points organizations need to consider while formulating the strategies to compete in the market place, moreover how the existing business model can be innovated, How Apple successfully implemented these strategies and when required efficiently reinvented in business model. Key Points Extracted from the E-learning video (What is Strategy). Strategy is mere a word used in complex business plans (Kryscynski,D 2015). It is the combination of tactics, Goals, Objectives and Description. In order to formulate strategy, the essential questions that one needs to take into consideration are: Where do we compete? Focus on the industries, products and geographical areas. What unique value do we bring to the table? The factors of image, reliability, product and services What are the organizational resources and capabilities? In an organization Resources are the extensive human capital, superior technology, strong network connection and unique reputation. The resources that we have can be both tangible and intangible. Capabilities refers to how effectively and rationally one can manage and use the resources. How to sustain our ability to provide unique value? How to avoid mitigation is one such point which provides great value and uniqueness, this helps to create brand loyalty among the customers. Application in Apple As a part of understanding strategy it is very important to realize that it is what you actually do rather than what you intend to do (Girothra,K, netissene,S 2014). It evolves as you continue to proceed with implementation and one must be very vigilant about time as it is one of the most important factor. The above discussed strategies can be seen implemented in Apple Incorporative. Apple is very clear about its target segment in which its competing and that is high end market whether it be iPhone, MacBook or iPad. Apple focuses on bringing some exceptional value factors such as reliability and uniqueness the idea of touchscreen smartphones was introduced by apple which made them the pioneer in the industry. They continuously innovate and improve its resources and capabilities to keep them competitive in the market. (O'Brien, B, 1996). Apple being one of the most valued brand in the world take advantage of it at every point of time this can be seen in the pricing of the product they manufacture it at a cost which is 1/10th of the selling price. In Apple the conceptualization and innovation of new product design and constant revaluation of market scenario and the concept of iCloud and iOS are Non-imitable through these prospects, Apple builds an ability to provide unique value and sustain it in the long run. Advocating Ideas in Xiaomi We can apply or suggest to apply the above stated strategies in a new emerging organization like Xiaomi which is planning to go expand in the newer markets such as that of US and Australia. Since, in the existing markets they are competing in the lower end smartphones they now need to decide if they want to continue it or want to change it. Till now they have been sustaining on the low cost market penetration strategy which can pose a greater problem since many companies are imitating it so they need to find some more unique values for their products. Since they have been the largest exporters of the smart phones in the region they can go with economies of scale and should focus on optimum resource utilization. Their strong financial performance will help them get more investors and fund them to develop high-end technologies. They should try and innovate x-factor that cannot be imitated. Since low cost strategy cannot be sustained for long they need to innovate with the product or ne ed to look for additional businesses to cope up with the increasing completion. Key Points Extracted from the E-learning video (What is Business Model Innovation). Innovation is the key factor to defeat path dependency and stay competitive in todays economy (HSGUniStGallen, 2003). Innovation is not necessarily about new technologies, excessive research, creating completely new ideas, its about just learning from others and reinventing your business model to stay with the new market trends. There are various myths about business model innovation such as innovation comes from ideas nobody had before, big success requires big resources and innovation break through are based on fascinating technologies (Lindgardt,Z et al., 2009). The Business Model innovation should change at least two out of the 4 Dimensions Who is your target customer? What do you offer to the customer? How do you calculate the value proposition? How do you generate revenue? (Bourgeois, L, et al, 1987) The 4 Is of change in business model (Mathur,S, Kenyon,A, 2001): Initiation: Analyze Current Business Model Ideation: Confront 55 Business Model and develop new model on these basics Integration: Consistency in Business Model and the concept of four dimensional organizational fit. Implementation: The Process of implementing the business model iteratively and working on it. Application in Apple The Business Model Innovation can be explained using the real time scenario of Apple incorporate. The Apple incorporate clearly ruled out the stated myth that innovation comes from idea nobody has before, as Apple did not invent Mp3 technology. They knows their target customer and provide them with the best value product and services. They offer superior products with superior sense of high end brand association with the brand, because of which they had a very high value proposition, they generated revenues through their products earlier. The Process that Apple followed to innovate Business model is (Haberberg,A, Rieple,A, 2001) First, Initiation they constantly analyzed the current Business model and constantly kept reinventing it. The 55 Innovation pattern on this basic the new business model is designed. Which shows exemplary performance in area of finance, product design etc. Two dimensions in which they innovated is the way they generated revenue earlier the revenues only came from the products now additional sources of income like animation, app development, music rights, and advertisement sales have come up, the value proposition is continuously innovated like number of applications, no advertisements in applications, extensive service network, and superior products and brand satisfaction among others. Advocating Ideas in Nokia Now this Business model innovation can be implemented in nokia since it is planning to reenter the smartphone market in the upcoming year. This would be the major change for the company since they have to decide the new target segment since the brand loyalties have shifted. Earlier they used to offer great hardware with an obsolete software which was the reason for the failure hence now they have opted to offer the latest software i.e. android maintaining their old competence of the superior hardware products, it would be difficult at first to access the value proposition they offer to the customer, moreover revenue sources would primarily be the sale of the products and may be later they can capitalize their brand equity. Conclusion: Business Model Innovation helps the organization to overcome the treat of path dependency faced by the organizations, taking example from successful organizations like apple organizations like Xiaomi and Nokia can successfully overcome issues related to strategic planning. References Lindgardt,Z et al., 2009, When the game gets tough, change the game, Boston consulting group, vol 6, no.2 Kryscynski,D (2015).what is strategy? [Online Video]. 5 January 2015. Available from: https://www.youtube.com/watch?v=TD7WSLeQtVw. [Accessed: 23 August 2016]. HSGUniStGallen. (2003). Business Innovation Model. [Online Video]. 22 October 2013. Available from: https://www.youtube.com/watch?v=B4ZSGQW0UMI. [Accessed: 23 August 2016]. Bourgeois, L.J. III, and Kathleen M. Eisenhardt. 1987. Strategic decision processes in silicon valley: the anatomy of the living dead.California Management Review(Fall): 143-145. O'Brien, B, 1996. Transforming the character of a corporation.,The Systems Thinker,vol.7 no.2, pg no,1-5. Haberberg,A, Rieple,A, 2001The Strategic Management of Organisations,Prentice Hall, United States Mathur,S, Kenyon,A, 2001Creating Value, Successful Business Strategies, Butterworth Heinemann, Canada Girothra,K, netissene,S 2014, Four Paths to Business Model Innovation, HBR, (July-august)