Competitive Strategy Business Environment

Question: Discuss about the Competitive Strategy for Business Environment. Answer: Introduction The modern business environment has become so complex and competitive so that the management of the organizations has to focus on the strategic plans, business innovations etc. There are so many organizations in the world which belongs to the same industry, which provides similar objects with same quality and at competitive prices. This condition of the business environment ruins the sustainability of the business in the environment. The demands of the customer and their preferences have also increased and they have become too specific in selecting the products and while at buying decisions. The world market has been opened to the customers and the accessibility of various brands is also made available which has increased the competitiveness (Grant, 2016). Through this report I took the privilege to highlight the role that the strategic plans and the business innovations plays in achieving the competitive advantage and sustainability in the modern business environment. Strategy Strategy can be considered as a long term plan through which the organization can achieve its objectives. An effective business strategy can bring competitive advantage and success for the organization. The business strategies are formulated through considering the factors which includes the organizational objectives, unique values of the organization, resources or capabilities, the sustainability of the organization etc. Through a sustainable business strategy an organization can continue to win in the business environment over a period of time. This long term business planning activity is to be carefully formulated and implemented so as to achieve the desired goals. The vision, mission, policies and procedures of an organization can influence its strategically decision making (Ward and Peppard, 2016). Source: www.tripleseo.com The organization The Great Atlantic Pacific Tea Company is a grocery store chain which holds a dominant position in the US market which works in collaboration with Canada. This large food and grocery retailer had to face some loss in business during its initial stages. The organization can focus on formulating the strategy which would have benefitted them from the financial losses (Ocasio and Radoynovska, 2016). For this some strategic goals formulated which can help in formulating the strategies. Meeting the demand of the customer if they identify the customer demands are not met through the research. providing ultimate customer service for achieving the loyal customers Provision of products at competitive prices to achieve competitive advantage For preparing the strategic plan for achieving the strategic goals the organization AP should first consider the following components Competing market: international market specifically Canada and US. Unique values: preferences of the Canada and US customers, the competitive products in Canada, the international brands operating in the market, etc (Kolk and Schokker, 2016). Resources/capabilities: good reputation in US market, the quality of product and service etc Sustainability in the Canada and US market For each strategic goals strategies has to be formulated considering the components mentioned and short coming in the above mentioned components are fulfilled. This will enable the management to produce an effective strategic which can benefit the organization in achieving the competitive advantage, sustainability etc. Through following the above mentioned steps the management of the organization can understand what their target customers exactly prefers and can provide them the products accordingly (Chang, 2016). Through considering the components mentioned above the management will get sufficient information which is relevant for the strategic formation. Some strategies which can be recommended are Provision of training and development to the staff members so that they can provide extra ordinary customer service, for better product information etc. Conducting intense marketing research for the identification of the customer preferences and their demands (Jeong and Harrison, 2016). Business Model Innovation Business model Innovation is the process through which new business models and ideas are developed through which the organization can remain sustain and profitable in the business environment. Many business giants like Nokia has been swiped out from the market due to lack of innovation and its implementation. The four steps which are essential of an effective business model innovation are the initiation, ideation, integration and implementation (Herrera, 2016). The management has to forecast the various opportunities in the market appropriate to the organization and should generate ideas so as to add value to the product and service they offer (Park et al, 2016). Source: www.stateytoth.com Consider the organization Nokia which is operating in the electronics and mobile industry. This organization had a dominant place in the world mobile market and had to face a major failure and has been swiped out from the industry. This organization focuses in the mobile sector and has emerged as a giant in the mobile industry (Visnjic, Wiengarten and Neely, 2016). The primary reason which can be identified for the failure of this organization can be a tremendous increase in the number of competitors in the mobile sectors, the technological paradigm which happened and are continuously happening in the mobile sector, the increasing demand and expectations of the customers, the interest of the customers to become highly savvy (Sauer et al, 2016). The management of the organization failed to realize and respond to the expectations of the customers. Some of the ways through the organization Nokia could have benefitted from the Business Model innovation can are mentioned below. Initiation: The management should have the initiation to get adapted to the new technological changes or take up the changes as per the need of the customers. Ideation: Creative or innovative ideas has to be formulated which can suitably meet the customer demands and the achieve sustainability for the organization. Integration: Be able to integrate the customer requirement and resources or potential of the organization Finally implementing the innovative ideas effectively (Bolton and Hannon, 2016). It is essential that the organization could have adopted the new technological advancements in the sector so as to meet the customer demands. On the other hand the business models should also focus on the maintenance of the customer satisfaction through the provision of efficient customer service (Saji and Ellingstad, 2016). Conclusion The strategy formulation and the business model innovations play a vital role in the success of the business organizations. The managers of the modern business environment should practice these methodologies so as to be competitive and sustainable. This report explains the concepts of the strategy and the business innovation models and the benefits these concepts can bring for the organization if implemented effectively. Two organizations are also considered for analysis which provides a better understanding about the concepts. References Bolton, R. and Hannon, M., 2016, Governing sustainability transitions through business model innovation: Towards a systems understanding. Research Policy Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC Press Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley Sons Jeong, S.H. and Harrison, D., 2016. Glass Breaking, Strategy Making, and Value Creating: Meta-Analytic Outcomes of Females as CEOs and TMT members. Academy of Management Journal, pp.amj-2014 Herrera, M.E.B., 2016. Innovation for impact: Business innovation for inclusive growth. Journal of Business Research, 69(5), pp.1725-1730 Ocasio, W. and Radoynovska, N., 2016, Strategy and commitments to institutional logics: Organizational heterogeneity in business models and governance. Strategic Organization, p.1476127015625040. Park, C., Miller, K., Evans, S. and Bamford, I., 2016, Refitting agile business model innovation to an incumbent company context: UK industry-academic collaboration case Sauer, R., Frankenberger, K., Lingens, B. and Gassmann, O., 2016. Spin-offs as Core Vehicles for Business Model Innovation: An Attention-Based View. Salim Saji, B. and Ellingstad, P., 2016. Social innovation model for business performance and innovation, International Journal of Productivity and Performance Management, 65(2), pp.256-274 Van der Kolk, B. and Schokker, T., 2016, Strategy implementation through hierarchical couplings in a management control package: an explorative case study. Journal of Management Control, 27(2-3), pp.129-154 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 Ward, J. and Peppard, J., 2016. The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley Sons