Competitive Strategy Business Model Innovation Method

Question: Discuss about the Competitive Strategy for Business Model Innovation Method. Answer: Introduction: Innovation is the continuous process of finding various methods by which any people, company or organization can sustain in its field of operation without being kicked out by their competitor (Amit and Zott 2012). The e-learning model of week 4 talks about innovation in business model. It has been able to highlight certain points based on which any company can develop a sustainable success path. There are four aspects in a business model, namely, the customers, goods and services offered to them, revenue generation and creation of value proposition. People usually have three misconceptions by the term innovation, they are: Innovation implies certain out-boxed ideas that never existed. It implies use of high profile technology and a company needs huge amount of resource to get grand success. The first thing that this video highlights is that many business giants failed as a result of misinterpreting the concept of success. They have the notion that their current scenario determines th eir success rate. The success of a company depends on how well the company can change their business models. This video also highlights the fact that most of the successful innovators created their products by amalgamating two or more product. Innovation in a business model implies changing minimum two aspects in a model (Visnjic, Wiengarten and Neely 2016). The adroit companies have successfully refined, changed the product design and modernize the existing products in order to stay ahead of their competitors. A successful innovation either reduces the cost of production or increases the value of the product as given by the customer. Microsoft Corporation is one of the leading companies using innovation in their business model. The company founded by two buddies, namely Bill Gates and Paul Allen in 1975 has gone through radical innovation in their products and services. It started its journey by providing BASIC interpreters and now it is one of the giants producing video games, high profile computers and smart phones (Ikeda and Marshall 2016). It also launched Microsoft Surface in the year 2012. The way in which the company evolved through innovation is discussed now. The company expanded its business strategically from entering the OS business, introduced office suite, x-box and then surface pro. It gradually acquired Skype in 2011 and LinkedIn in 2016. Microsoft Corporation has successfully kept the price of its smart phones lower than the other smart phones available in the market serving the same purpose (www.microsoft.com 2016). Also it has provided opportunity to synchronize the laptops and tablets working on Windows OS with the smart phones so that people can get access to the data stored in those gadgets even when he are out of their home. It has given tough competition to Google and Apple in recent years and in the year 2012 it also surpassed the revenue generated by Apple Inc. Realizing the fact that it cannot strive to compete with the age old method is the greatest success of Microsofts business model (Pisano 2015). Hence, it has given its users the opportunity to contact their relatives and friend via Skype messaging. It has helped in the communication, whereby the users do not require to be confined in-front of their computers. At present it has been involved in changing its strategy which has also taken a toll in their current equity but the CEO hopes that this will enhance the future of the company. E-Learning Week 5: CAGE Framework, Evaluation of International Trade Opportunity: International trade depends on several important factors like inflation, national income and government trade policies of the trading partners, export subsidies and import restrictions and last but one of the most important thing s comparative advantage of the trading nations (Ghemawat 2015). Professor Pankaj Ghemawat has developed an interesting and exigent theory named CAGE Framework. This framework can help people to understand the international theories of trade in a more realistic way. The acronym CAGE refers to: C: Cultural A: Administrative/ Political G: Geographic E: Economic According to Professor, any kind of interaction, both inclusive and exclusive of trading relation are highly affected on the edge of these dimensions (Ghemawat and Altam 2016). Data suggests that whenever any two or more country has analogy in these aspects then the probability of those countries in trading is much higher than the countries which do not have resemblance in these aspects. There is huge impact on the economic and social scenario of a country depending on these aspects. This framework helps in analyzing the discrepancies and the parallelism of the countries. Coca-Cola Co. is one of the international brands incorporating and implementing the CAGE framework in their business model. It tries to implement different strategies in their business in different countries. For e.g.: They advertise their products differently in different countries. Say, in the country of India, they took the help of famous celebrities named Amir Khan, Deepika Padukone, Farhan Akhtar, Alia Bhatt, etc to promote their products. On other hand while Western consumers they posted advertisement of Marilyn Monroe, Elvis Presley, etc. In order to reach out to various customers the company has also used the local language of the country in which it trades. Like in China, it used Chinese language where as in India it used promotional songs in Hindi language (www.cocacolacompany.com 2016). The company has efficiently used the geographical locations of different countries in spreading their product. The company has been efficiently establishing their shops and vending machines in public areas so that more people can get the access to their drinks. It has efficiently used its CAGE framework and has expanded its products to more than 200 countries. The uniqueness of this company is in the economic strategy that it uses in its trade. It has kept the bill of its products lower than most of the available substitutes. The most important thing that the company did is to aggrandize its products. Apart from soft drinks, it also sells fruit juices, caffeine products and energy drinks. The company had been so efficient in implementing various kinds of strategies that it faces the least competition in spite of the fact that it is engaged in international trade throughout the world. References: Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. CocaCola Company. (2016). Home Page. [online] Available at: https://www.coca-colacompany.com/ [Accessed 15 Dec. 2016]. Ghemawat, P. and Altman, S.A., 2016. 7 Distance and International Business Research.The Laws of Globalization and Business Applications, p.200. Ghemawat, P., 2015. From International Business to Intranational Business. InEmerging Economies and Multinational Enterprises(pp. 5-28). Emerald Group Publishing Limited. Ikeda, K., Ikeda, K., Marshall, A. and Marshall, A., 2016. How successful organizations drive innovation.Strategy Leadership,44(3), pp.9-19. Microsoft.com. (2016). Microsoft Official Home Page. [online] Available at: https://www.microsoft.com/en-in/ [Accessed 15 Dec. 2016]. Pisano, G.P., 2015. You need an innovation strategy.Harvard Business Review,93(6), pp.44-54. Visnjic, I., Wiengarten, F. and Neely, A., 2016. Only the brave: Product innovation, service business model innovation, and their impact on performance.Journal of Product Innovation Management,33(1), pp.36-52.