Competitive Strategy MIT Sloan Management

Question: Describe about the Competitive Strategy for MIT Sloan Management. Answer: The main ideas: Strategy is crucial for modern day businesses. However, while setting the strategies for achieving a certain objective it is important to identify the difference between the strategic paths and the strategy itself. As opined by Grant (2016) strategy is a sketch of actions planned to accomplish a long-standing or an inclusive aim. Hence, it is important for the strategies to be effective. Here, in the given link a major issue relating the laying down of strategies has been discussed. As opined by Madsen (2016) while lying strategies, it is important for the strategy designers to identify four fundamental issues. These are: where does the organization is competing; what the uniqueness that the company is offering; what are the resources to utilize; and how to sustain the value of the brand. As mentioned by Grant (2016) it is important to identify the exact market segmentation for having successful strategy, as it will help to detect the demand and scope of supply. Moreover, the organiz ations need to provide something extra than its competitors which will attract the customers leaving the substitutes behind. Next, the resources (tangible or intangible) which will have to use is crucial to identify. Lastly, as described by Madsen (2016) the organization needs to set paths to create barriers to the competitors to enter in its selected market. a company needs to identify these four fundamental issues to set an effective strategy. A company based discussion: Now, if the business model of Amazon.com can be identified it can be noticed that the company is already following the above discussed four thumb rules. As opined by Bharadwaj et al. (2013) Amazon has strategically chosen the market segmentation. It has identified the retail and non-retail sector for operating. Moreover, they have targeted the upper middle class social groups who are busy with their business/Job, have no time to go the physical stores, and are comfortable with online shopping. As discussed by Bharadwaj et al. (2013) if they can categorize their target market for the non-retail sector more effectively it will help them to obtain better success level. Moreover, the company is providing lowest cost customer centric products, and as a retail store it is offering a huge range of products. Diversification has provided it a great extent of differentiation. On the other hand, Amazon.com is the patent holder of various technologies and it has an effective management team. In addition, the company has developed strong supply chain management (Amazon.com 2016). As discussed by Grant (2016) it has deep structured network which makes the products available at remote locations. However, the barriers to entry are powerful in this market. The company is operating with a huge capital, which will be hard for the new competitors to accumulate. However, as mentioned by Bharadwaj et al. (2013) Walmart being the largest company in this sector is hugely threatening Amazon. In addition, as opined by Grant (2016) Google is also being a threat to the company when it announced its aim to compete for head to head with Amazon's Web Services with their latest service offering, Google App Engine. Hence, it is important for Amazon to differentiate its services and product offerings from that of these companies and sustain the value of the brand to the customers. 2: Video 2 (Business Model Innovation): The main ideas: Innovation in the business model is fundamental for the enterprises to be successful in the future market. As mentioned by Massa and Tucci (2013) it is important for the companies to identify what will be the market demand in future or create it by themselves. However, unlike the popular idea, innovation does not involve trying something that is unique or resource consuming or severely technology based. To be innovative in the business operation the organizations need to identify the market segment, the offerings of the company, the value creating process and the source of profit. An innovative business model needs to change any two of these ideas. As discussed in this video link, an innovative business model needs to follow four simple but interrelated steps, these are: initiation, ideation, integration and implementation. In the first step, the organizations need to identify the target market, the offering, the USP and the revenue generation process. Then the management needs to fi nd the right model for the business by ideating or examining the existing patterns. Next in the integration stage, the companies need to review the potentiality of the model to be sustainable. Lastly, in the implementation stage, the companies need to make a pilot research and proceed according to the information gathered. However, as discussed by Amit and Zott (2012) it is important to collect the patronization from the management to make the innovation successful. In addition, it is crucial to implement one model at a time, communicating the change model and the need to it to the stakeholders and give it enough time to be effective. Finally, it is also important for the management to overcome the idea of being unique to be successful in innovation. A company based discussion: Here, the business model of Apple can be discussed. The company has successfully segmented the market and introduced customer-oriented product to the market. They are targeting the market according to the psychograph and providing suitable products. The company has always made innovation in the offerings and it changed the profit sources of the organization. As mentioned by Yin et al. (2014) they have made innovation, their USP, and have focused on the customer service to create value for the brand. However, in the recent time, they are also following the same strategy of product innovation and value creation. The management of the company has always supported the innovative ideas to be implemented. The management mainly, Steve Jobs had always communicated the necessity of innovation and encouraged the subordinates for it. Moreover, the company has always followed strategic time gap for every innovation; so that the market can be ready for its demand and the company can gain the desi red result (Apple 2016). However, it cannot be ignored that Apple has never introduced unique in the market, but they have identified the right market segmentation, time and process for the idea to be successful. The company now needs to keep the process going to be successful in future. References: Amazon.com. 2016. [online] Available at: https://www.amazon.com [Accessed 20 Aug. 2016]. Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Apple. 2016.Apple. [online] Available at: https://www.apple.com [Accessed 20 Aug. 2016]. 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. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Madsen, T.L., 2016. Business Policy and Strategy. Massa, L. and Tucci, C.L., 2013. Business model innovation.The Oxford Handbook of Innovafion Management, pp.420-441. Yin, P.L., Davis, J.P. and Muzyrya, Y., 2014. Entrepreneurial innovation: Killer apps in the iphone ecosystem.The American Economic Review,104(5), pp.255-259.