Competitive Strategy Digital Business Strategy

Question: Describe about the Competitive Strategy for Digital Business Strategy. Answer: Paragraph 1 (YouTube and Textbook) There are vast differences in between setting objectives or goals for an organisation and making strategies for achieving it. However, many organisations and the higher management become confused in between objectives and strategies. A strategy can be made only after deciding the goals, objectives, tactics and descriptions. An effective strategy should portray the ideas and before knowing about the meaning of strategy, one should have a clear understanding of what is not strategy (Youtube.com 2016). The word strategy is derived from the Greek Word Strategos", which means the art of the general. Suntzu has defined even strategy as the art of war, a Chinese author that suggests winning is good and loosing is dreadful. A strategy should be made after knowing the hidden weakness of competitor in the market in order to achieve the targeted goal set by an organisation. As the modern day business can be considered not less than war, therefore, the business executives should develop some cri tical tactics to become successful. An effective business strategy provides transparent answers to the four major questions such as the area of market, unique value of product or services, utilisation of capabilities and resources and sustainability of the unique value. For instance, IKEA sells Scandinavian furniture for home decor. The major strategy of this company is to offer inexpensive furniture in excellent designs to the main cities. The company designs every product in a manner to reduce shipping costs. The complex interdependence is the key strategy followed by IKEA, which is difficult to imitate by the competitor companies. Paragraph 2 (general article theory) Coca-Cola Amatil enjoys the dominant position in the commercial beverage industry of Australia. An appropriate strategy can help the management to take suitable decisions accordingly the operations of other competitor companies such as PepsiCo, Nestle Waters France and Dr Pepper Snapple Group (Hitt et al. 2012). Although Coca Cola Amatil is famous for carbonated soft drinks, still, with adequate innovation, the management has launched various flavoured drinks and energy drinks in order to attract the new edge health conscious customers. The adopted strategies by Coca-Cola Amatil not only help the company to compete with the unique product of the competitor companies, however, to combat the issues regarding production costs. The competitive strategies also contribute to know the present happenings in the beverage market of Australia. The higher management of Coca-Cola Amatil involves marketing managers, who make a thorough survey about the preference and contemporary trend in the non- alcoholic beverage industry. Wieland and Marcus (2012) have mentioned that market survey suggests possible risks about a particular industry and an organisation should make strategies to mitigate these risks. Coca-Cola Amatil improves the process of premium pricing strategies in order to offer less expensive products to the customers. As the major number of consumers prefers low-sugar or zero sugar beverages in Australia, therefore, the management of Coca-Cola Amatil produces Diet Coke, refreshing coconut water (ZICO), frozen drinks, lemonade juices and iced tea. Even with the proper implementation of competitive strategies, Coca-Cola Amatil introduces new user-friendly pack as a snack range. A best competitive strategy involves the profit to customers, shareholders and the organisation itself as it has enough capability to strengthen the core percentages of sale revenue earned from the market. The most important competitive strategy includes Coca-Cola Amatil has reduced the price o f some packed carbonated drinks to capture the market of PepsiCo, the major competitor of Coca-Cola Amatil in the non-alcoholic beverage industry of Australia. Video 2: Paragraph 1 (YouTube and Textbook) Innovation is the key factor for an organisation to become successful in future. However, many organisations busy with daily activities and satisfying customers and forget to innovate future opportunities (Youtube.com 2016). Innovation either increases the customer value of a product service or lowers the cost, which help to create competitive advantages in the industry. Innovation should be unique and which someone has not done before, large success needs huge resources and lastly it should incorporate modern technologies. Only with effective and potential innovation, Apple, Amazon and Cisco are able to hold the present position in the concerned industry. A business model innovation includes four factors such as the targeted customers, offerings to them, the process of creating a value proposition and generations of revenue. Every innovation varies from the other according to the industry criteria and condition. For instance, eBay has changed the trend of trade only with proper inno vation. An organisation should analyse existing business models to create a new idea. Innovation should be creative and has the revolution power to change the industry. There are little processes to innovate the business model such as initiation, ideation, integration and implementation. In initiation, the management should analyse present business model, in ideation, it should be a confirmation with the 55 innovative business model patterns to improve new models. In integration, the management should check the consistency of the propped business model and in the last stage; it should implement the innovation for success. An organisation should analyse the positive and negative aspect of innovation before implementing it in the business model. Paragraph 2 (general article theory) Bharadwaj et al. (2013) have suggested that a proper innovation of business model can help an organisation to achieve its desired goal in a short period. After understanding the demand and preference of Australian Customers, Coca-Cola Amatil begins to produce product according to their choices. Coca-Cola Amatil is successful in the beverage industry of Australia just because its efficiency to determine the appropriate strategies with proper innovation process. For instance, this company critically analyses, reviews the current business model, and then has adopted potential strategies (Casadesusà ¢Ã¢â€š ¬Ã‚ Masanell and Zhu 2013). The implementation of new competitive strategies was not at all easy for the management. However, with adequate survey and market research, it was possible for the organisation to come up with new strategy. Such adopted strategies only an active step to the further development of the current position in market share of Coca-Cola Amatil in Australia. The ap plication of competitive strategies helps Coca-Cola Amatil to retain its present position. Innovation is the best strategy for an organisation for achieving future goals. References: Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward a next generation of insights.Mis Quarterly,37(2), pp.471-482. Casadesusà ¢Ã¢â€š ¬Ã‚ Masanell, R. and Zhu, F., 2013. Business model innovation and competitive imitation: The case of sponsorà ¢Ã¢â€š ¬Ã‚ based business models.Strategic management journal,34(4), pp.464-482. Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012.Strategic management cases: competitiveness and globalization. Cengage Learning. Wieland, A. and Marcus Wallenburg, C., 2012. Dealing with supply chain risks: Linking risk management practices and strategies to performance.International Journal of Physical Distribution Logistics Management,42(10), pp.887-905. Youtube.com 2016.Business Model Innovation. [online] YouTube. Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed 16 Aug. 2016]. Link: https://www.youtube.com/watch?v=B4ZSGQW0UMI Youtube.com 2016.What is Strategy?. [online] YouTube. Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed 16 Aug. 2016]. Link: https://www.youtube.com/watch?v=TD7WSLeQtVw