Business Model Innovation Competitive Strategy

Question: Discuss about the Business Model Innovation for Competitive Strategy. Answer: Introduction: In the contemporary business scenario, organisations need to identify specific strategies to develop market operations in a target market. Strategic decisions can be recognised as one of the significant influential factors in business economics. Currently, precise strategic moves of corporate business organisations have played a crucial role influencing the purchasing behaviour of the target demographics profile in any given market. Moreover, efficient market-oriented competitive strategies can drive consumers sentiment in the case of purchasing a product or services. Meanwhile, considerable competitive strategic moves can be evident to answer the four identified preliminary questions significant to business strategy. First of all, the business strategy of any identified firm must be effectively utilised to address the target market of an organisation (Kryscynski, 2015). Through the identification of the target market area, organisations can derive conceptual marketing concepts to cr eate a positive influence on the target customers. Secondly, the strategic moves of a business organisation must specify the rarity, Individuality and innovativeness of the selling goods or services to get a distinct advantage in the competitive market area. Invariably, distinct differentiation in prices, quality and monopolistic features of services can deliver an edge over the rest of the market competitors (Grant, 2011). Thirdly, the business strategy of an enterprise must convincingly describe the available resources of the organisation to keep the business moving forward. Organisational resources such as financial structure, networking resources, technological efficiency, and contemporary human resources of a business corporation can be utilised to deliver the most sustainable business standards and business identity to the target demographics (Liddell Hart and Liddell Hart, 2007). Finally, the strategic implementation can identify the unique value sustainability factor of the business organisation so that consumers can separate the products or services of the company from the rest of the competitors. Such viable strategic moves can develop sustainable market operations in any given market scenario. The utility of the strategic planning must be applied to the business structure of DHL Express so that the existing business operations of the logistic company can be enhanced to the highest standards. The strategic business model can help to identify the effective target market of DHL Express to access the massive portion of the geographic area and the target customers attached to the same. Secondly, the strategic planning can identify the current market competitors of the logistics corporation in a given market scenario (Sterling, 2013). Through the identification of competitors business strategy, DHL Express can evaluate the best affordable pricing and service innovativeness to get a clear competitive advantage. Also, featured marketing ideas and promotional activities can be endorsed at the same time to influence the target demographics (Raspin and Terjesen, 2007). On the other hand, being a logistic company, an active networking model and technological efficiency can be encourag ed within the organisational framework to access the global market creating individuality. Thus, the organisational management of DHL Express can develop a sustainable business model framework following the strategic concepts suitable for business growth. Meanwhile, the strategic moves in business planning can significantly contribute towards the brand identity of the logistics firm to improve the standards of business operations. Along with that, such compelling strategic concepts can be utilised to add more new business clients to the system. Business Model Innovation Business Model Innovation has been identified as a key to success for the modern business organisation in the current market scenario. It is important for any organisation to implement flexible strategy that will help it to make necessary changes whenever and wherever needed. Business model innovation helps to meet the changing demands of the customers. Notably, it can be seen that there are several global leaders that makes the mistake of not considering the future while planning the current strategy (Bucherer, Eisert and Gassmann, 2012). The video presented by Professor Dr Oliver Gassman discusses the mistakes committed by various successful companies while seeking growth in the present. There are various companies that have faced fall in market shares irrespective of their immense knowledge about the market (Gassman, 2016). The most effective example is of Nokia that winded up because of their lagging in continuous innovation. It happened because of the non-implementation of innov ative ideas and changes in the business model. It is important for any business organisation to introduce new products and services to meet the changing need of the customers. Every product has a particular life-cycle and failure to meet the changing demand of the customers can lead to fall of the company (Lindgren, 2012). The main reason that leads to the fall of the company is the busy schedule while achieving a high level growth in the market. The global leaders forget to consider the future and seek failure in the long run. Innovation is not just development of technology, but it is the development of new ideas or business models that can help the company change its strategy to continue its growth in the long run (Andries and Debackere, 2013). A company needs to follow four phases of business model innovation to seek success in the long run. The first phase is of initiating the innovative ideas that can be utilised to make changes in the business model. The second phase is to co mpare the ideas with other business model to choose the best alternative. Third phase is the integration of the new innovative idea in the market to observe the opportunities to grow in the market. The final stage is to implement the new business model innovation in daily operations of the company. It can be seen from the discussion that implementing changes through business model innovation is the key to the long term success for a global business leader. If an example is considered, it can be seen that DHL has introduced the Fair and Responsible challenge in the year 2016 by focusing on responsible and fair logistics. The business model innovation will provide the company with extended reputation in the market (Taran, Boer and Lindgren, 2015). The company aims to focus on shared value of the customers and turn the environmental and social problems into sustainable solution. DHL invests on corporate social responsibilities to gain a better positioning in the market (Dhlinnovationchallenge.com, 2016). It is important to consider the increasing concern of the people regards to society and environment. Hence, to gain a good image among the customers and increase customer loyalty DHL has introduced the innovative changes in its business model. The new business model will provide l ogistic solutions at lower price by keeping in mind the social and environmental sustainability. References Andries, P. and Debackere, K. (2013). Business Model Innovation: Propositions on the Appropriateness of Different Learning Approaches.Creativity and Innovation Management, 22(4), pp.337-358. Bucherer, E., Eisert, U. and Gassmann, O. (2012). Towards Systematic Business Model Innovation: Lessons from Product Innovation Management.Creativity and Innovation Management, 21(2), pp.183-198. Dhlinnovationchallenge.com. (2016). Fair Responsible Challenge | DHL Innovation Challenge. [online] Available at: https://www.dhlinnovationchallenge.com/fairchallenge/ [Accessed Aug. 2016]. Gassman, O. (2016). Business Model Innovation. [online] YouTube. Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed Aug. 2016]. Grant, R. (2011).Contemporary strategy analysis. Cambridge, Mass., USA: Blackwell. Kryscynski, D. (2015).What is Strategy?. 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