Introduction Of Global Strategy And Foresight Assignment
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A corporation achieves a competitive edge when it develops as well as acquires a collection of traits that enable it to beat its rivals. Nearly 50 years ago, the business world was preoccupied with developing theories to explain competitive advantage. The purpose of this section is to provide an outline of the most important ideas in this area. In the early 1960s and concluding with the most current formulations, the review will span a long period of time. In the early days, there were primarily two ideas on what constituted a competitive advantage:
Market-based and resource-based approaches are distinct ways of looking at things (RBV). Resource-based strategy and the idea of core competencies are interwoven. The resource-based model has also spawned the knowledge-based or capability-based conceptions of strategy.
Competitive Advantage & Strategic Management
Strategic management may be most known for its focus on gaining a competitive edge (Saeidi et al., 2019). Saeidi et al., (2019) defines strategic management as "the mix of choices and actions that culminate in the design and execution of strategies targeted at achieving an organization's goals." The term "continuous iteration aimed at preserving an organization's complete environment" refers to strategic administration, according to Vargas et al., (2018). Strategic management aims to define the performance of the firm, elements of strategic decision, and competitive advantage.
A strategic choice determines the market in which to participate and the location of the organization within that market. According to Chen, (2018), strategic management is based on economics, sociology, or psychology. Contingency theory, resource dependence theory, and organizational ecology all serve as sociological underpinnings. They also assert that Mintzberg's (1978) complex geometrical and organizational behavior theory has anything to do with the psychological underpinnings of the field (Chen, 2018).
As per the Market-Based View (MBV), the most important factors for company performance are industry dynamics and an eye toward the external market. Structure-Conduct-Performance (SCP) and Porter's Five Forces Model (FFM) are two of the most well-known concepts in this area. Profitability and performance of a corporation are seen through this lens as being fully reliant on the industry's structure and competitive environment (Papadas et al., 2019). In Hoskisson's view of the history of strategic planning, the positioning schools of strategy concepts as well as ideas created during the Market-Based View (MBV). According to the study, the company's performance is strongly reliant on the industrial environment (Papadas et al., 2019). With regard to industry trends and their own company's position in relation to those of its rivals, they analyzed strategy.
Bain established the Structure-Conduct-Performance (SCP) paradigm, which is often known as the Industrial Organization framework (Wagner, and Hollenbeck, 2020). How the structure of an industry affects corporate behavior (conduct) and its success is explained in this article. According to Wagner, and Hollenbeck, (2020), variables like as entry barriers, product diversification, the number of competitors, and the quantity of demand all impact a company's behavior.
Resource Based View
The resource-based perspective of the company, also known as RBV, places emphasis on the resources that firms have developed in order to compete in their external environments. Examples of people who made a major contribution to the development of the Resource-Based Strategic approach are Ansoff (1965) as well as Chandler (1962) (Jones, Harrison, and Felps, 2018).
According to Aureli et al., (2018), the focus of studies shifted from the structure of the industry (e.g., the Framework (SCP) paradigm as well as the five forces model) to a firm's inner structure, along with resources and competencies (the foundational facets of the Resource-Based View). Since that time, the resource-based viewpoint, sometimes known as RBV, has developed into a popular competitive edge theory (Jones, Harrison, and Felps, 2018).
Knowledge Based View
Knowledge is seen as a generic resource by the vast majority of RBV proponents, yet, there are many who contend that it has distinctive characteristics that make it the most important and valuable resource. In today's information age, excellent performance is primarily determined by a combination of knowledge, understanding, intellectual assets, and skills. According to Salunke, Weerawardena, and McColl-Kennedy, (2019), knowledge is the most precious resource that a company has.
Knowledge is the one resource that really is difficult to copy, according to Anning-Dorson, (2018). Competing businesses may readily imitate technology, capital, market share, and product sources; nevertheless, knowledge is the only resource that may be difficult to replicate. Knowledge may be broken down into two categories, namely information, and know-how, according to Anning-Dorson, (2018). The five levels of knowledge that make up Beckmann's knowledge hierarchy is as follows: data, knowledge, information, expertise, and capabilities. Core knowledge, extensive knowledge, or innovative knowledge are the three distinct subsets of organization knowledge that are distinguished by Mahdi, Nassar, and Almsafir, (2019). The basic information that underpins a company's ability to survive in the short future is referred to as core knowledge.
Capability Based View
Grant argued that capabilities are the root of all available resources, while resources are the root of all available capabilities. Ferreira, Coelho, and Moutinho, (2020) takes a similar view, claiming that a company's talents, as opposed to its resources, are what contribute to the company's long-term competitive advantages. Ferreira, Coelho, and Moutinho, (2020), underline the significance of capabilities and claim that the ability of a company to use its talents to undertake important activities inside the company may offer the company a competitive advantage.
In comparison to resources, El Daly, (2020) described capabilities as an organization's capacity to deploy resources, often in conjunction with organizational processes, in order to accomplish a certain goal in a manner that is satisfactory to the business. It is the ability to integrate, generate, and rearrange both internal as well as external skills that defines a company's dynamic capacities, according to El Daly, (2020).
Relational View of Strategy
There has been some debate over the best way to measure competitive advantage. However, one theory puts the focus on the interrelationship between dyadic/networked routines and processes. That the RBV's assertion that resources are owned by a singular entity is challenged by this approach. Others argue that a company's greatest advantages may reside beyond its four walls. According to Bel, (2018), inter-firm interactions may be a source of structure rents as well as a competitive advantage.
Relational rent is described by the authors as "a supernormal profit jointly generated in a socialisation which can be created by any enterprise in isolation." It can only be established via the unique contributions of the partnerships (Arsawan et al., 2020). Relative assets, routines and experience, complementary resources and talents and efficient governance are the four source of sustainable competitive advantage identified by the authors. To do an "interaction-level analysis," one must look at a company's numerous commercial contracts. Intra-organizational interactions may now be analyzed in new and important ways thanks to the inclusion of this additional unit of analysis. Inter-organizational perspectives on strategy are also emphasized by Arsawan et al., (2020), and the analytical unit used for interaction analysis is even coarser.
However, the MBV of strategy suggests that a firm's bargaining power inside the market is a primary source of high returns; this is supported by the RBV, which claims that this (source of good returns) is a company's collection of strategic resources and skills and expertise. Profit-preservation policies are a barrier to entry into the MBV market, but they are also a barrier to the replication of unique resources at the business level.
Shafiee, (2021)’s latest idea challenges long-held views about the timing of strategy design and implementation. Strategy development has always been seen as a long-term endeavor that will direct a company's actions for many years to come. As a result, strategies would be continuously updated and improved. This thesis argues that opportunities for developing competitive advantage are limited in light of the current economic environment.
How strategies are designed and executed is going to change as a result of this discovery. This necessitates a far shorter strategy lifecycle and the ability to react quickly to changing market circumstances. An important consideration from the standpoint of the market, as market positioning responses, must be much quicker.
This review of the literature demonstrates that the way strategy is defined and the analytical units employed to study it vary greatly. There seems to be no consensus on which of the many viewpoints is the best one for the future. A strategy that incorporates all four views presented in this book is likely to be most effective in many circumstances. We learned that strategy and "doing" are interwoven in this assessment of the literature. In order to achieve a given market position, a corporation must be active, as well as appropriate use an internal or relational resource of the organization.
A lack of attention has been paid to strategic action and to the analysis which goes along with it (such as the circumstances under which it is possible or the consequences of such actions). It is possible that, in the new business environment, internal corporate capabilities and resources may become sufficiently dynamic to justify the use of the word "transient."
Macintosh computers, iPods, and iPhones are just some of the well-known products manufactured and supported by Apple Inc., an American consumer electronics firm based in Cupertino. As a result, Apple has become a market leader because of its products' ability to spark technological revolutions. Innovation and gradual improvement are two of the most important aspects of the company's overall business strategy. Apple's biggest strength is its inclination to "think outside of the box. Apple's cutting-edge ideas and gorgeous aesthetics have changed the way people listen to music and communicate with one another. With over a billion units sold, the iPhone is Apple's best-selling gadget and has completely altered the way people interact. The main characteristics of this device, which combines the functions of a music player (the iPod) with such a mobile phone, are "multi-touch" or "multi-tasking" just on graphical interface. The phone's camera and multimedia player allow for easy web browsing and access. A specialized market is being targeted by Apple, which means the pricing of the iPhone is greater than that of other smartphones. As a result, the iPhone had a difficult time breaking into the market and competing with more established competitors in the mobile sector. Because of its creative and distinctive features, iPhone continues to keep its competitive advantage via continuous development and introduction of new advancements.
Forbes' "50 Most Innovative Businesses" ranking rated Apple at the top in 2009, calling this one of the greatest profitable innovation companies in history. Other firms may be encouraged to focus on innovation if they witness the $9.87 billion in profit from innovative items in 2009. A touch-screen gadget known as the "iPad," which can be used to surf the Internet, listen to the music, films, and games, is a successful product from Apple. Early in the year, the product's introduction generated many talks and drew strong customer interest. This is another demonstration of Apple's inventive success. Inquiry as to how others see Apple's achievement in product innovation. With product innovation the market size of Apple grew at a huge rate. IBM and Microsoft are considered are some of the main rivalries of Apple. IBM has created difficulty for Apple in the technological market during 1980s. Despite, the difficulties Apple managed to increase its revenue by $10 million and it accelerated its sales and revenue by selling more than million computers per year. In 2001, Apple introduced iTunes, a computer program for playing music and converting music to MP3 format (Podolny et al., 2020). With sell of iPod, Apple became of the prominent market leader in the technological market. By 2006 the organization sold one billion songs and videos through their own official website.
Key Driver of Innovation for Apple
Apple's top innovation driver is the requirements of its customers. New technology is an important part of the company's strategy, but so is a fresh look that prioritizes the wants and requirements of the end customer. When it comes to creating high-tech devices that are easy to use, Apple was always the go-to company. When using an Apple Macintosh, one of the company's most popular products, the user may easily move about the screen using the "mouse." When it comes to transferring and organizing the music, the iPod is the ideal solution since it is so easy to use (Podolny et al., 2020). With its click wheel, users may quickly browse through tens of thousands of music. There have been other smartphones with these features, but the iPhone is the first one to include all of them in one device. Thus, the customer does not need to be a scientist to operate a phone. For Apple consumers, the blend of a groundbreaking user interface and an intuitive design is important. It is a primary driving factor behind the development of new electrical products for consumers (Lordkipanidze, 2019). Apple has its own retail stores, which makes it easier for consumers to visit and give feedback in person. As a result of the company's in-depth knowledge of consumer expectations and how to satisfy them, Apple has developed an innovative strategy. Technical expertise in the organization is one of the key drivers for Apple as it helps the organization in creating technical products that leads the organization in creating competitive advantage in the global markets. With a bunch of expert teams Apple steers its production with innovative products which drives the market for the organization.
Competition is next innovation device that makes iPhones more interesting to customers than other devices. Mobile device makers like Apple are forced to constantly enhance their devices due to intense competition. In order to keep customers loyal and attract new ones, Apple is always working on the next big thing. The iPhone was a big hit with customers, selling an equivalent of 20,000 handsets per day in the first 200 days. RIM held the largest portion of the market in the first half, with a 19.5% share (Zanandrea et al., 2021).
Last but not least, economics is the fundamental driving force for new developments. Companies' employees perform better, and their product output is almost same. Companies are compelled to innovate because of the economic climate. If someone looks at the "50 most innovative corporations rating," the majority of those firms have their corporate headquarters located in the United States, for example companies want employees with higher levels of creativity and imagination since these traits seem to be essential if they are to achieve rapid revenue development (Podolny et al., 2020). Steve Jobs had made Apple even more of a model of the creative business, and as the market shifts toward creativity, firms across the world are dissecting Apple's achievements in technology and creation," Businessweek said. " Today's economy also gives customers more purchasing power (Zanandrea et al., 2021). Because customers are less concerned about the pricing, corporations may spend less time and money on R&D and more time and money on implementing cutting-edge technologies to new goods.
Strategic Enablers for Innovation
The very first enabler was Apple's CEO and co-founder, Steve Jobs, who took the helm in 1976. As he put it, "Innovation separates the leaders from the followers." He derived the conclusion that the key to gaining a competitive edge is via the use of new ideas. It was often remarked by Steve Jobs that the finest work is always produced by the best individuals at work. He discovered that the only process to create an exceptional job is if someone really likes what they are working on (Appio et al., 2021). This human capital strategy serves as a springboard for new product and service concepts. An important innovation concept is to identify and nurture the next generation of innovators. The CEO has a critical role in determining the company's long-term strategy and objectives. In 1997, Jobs was appointed CEO of Apple and introduced NeXTSTEP technology, acquired by Apple from NeXT, into Apple products, including Mac OS X. Graphical User Interface (GUI) was his first foray into computer interface design (Greg, 2020). Attractive designs and strong branding have been successful since then. Jobs has served as Apple's CEO ever since.
By reforming the corporation, Jobs began his new role as CEO. A small set of goods, such as desktops and portable Macintosh computers, were his emphasis, and he deleted 15 of the 19 company's products (Appio et al., 2021). A thousand workers were let go, and the facility was shut down in return for $150 million in cash (Ramaswamy et al., 2022). The iMac was born as a result of his efforts to design a popular computer that would sell for less than $2,000 at retail. The iMac is a desktop computer with a distinctive design. Jobs' return to the firm was marked by his first major success. A new iMac was sold every 15 seconds, according to Steve Jobs, during the first 139 days the company was in business (Podolny et al., 2020). With sales of 800,000 products in the first five months, the corporation is expected to make a profit once more as a consequence of this outcome.
Apple Inc is one of the most valued corporations in the world. Apple maintained its success through consistent innovation within its operations and products. The higher management always placed innovation and strategic thinking over anything in terms of doing an effective business. The study shows the main enablers and structure of the organization to reflect on the innovation processes of the company. The key drivers of innovation for Apple have also been discussed within the study. It has been initiated that Apple has faced a lot of difficulty in the earlier stages for establishing a competitive advantage in the market. IBM and Microsoft are some of the organization which has led to struggle for Apple. It has also been found that Apple has sold over one billion song and videos through its official website. Although after the struggles faced by Apple due to IBM and Microsoft the organization managed to rise its revenue by $ 10 billion in the technical market.
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