Strategic Management Competitive Strategy

Question: Discuss about the Strategic Managementfor Competitive Strategy. Answer: Introduction This report discusses two key ideas through two paragraphs in which the first paragraph will describe the business idea of strategy and its implementation and second paragraph will include the key idea of business model innovation. For this, two organizations, ALDI Supermarkets Chains Stores and Apple Inc. are selected to apply the key ideas of strategy and business model innovation representatively to these organizations. Key Idea- What is Strategy and Ways for the Implementation Strategy is a key idea for this section that provides an appropriate direction for an organization toward the achievement of the business goals and objectives. The strategy works according to the organizational vision, mission statement, and values for enhancing the market share, product positioning, sales performance, and revenues of the company. The strategy implementation is the sequence of activities followed by an organization to execute the strategic plan. It involves the strategy articulation, strategy communication, strategy translation, strategy monitoring and controlling, and strategy engagement. The strategy implementation enhances the product positioning and value proposition of the company for delivering values to the customers (Kaiser and Ringlstetter, 2010). The strategy implementation is identified as a process in which an organization should develop, utilize, and amalgamate the organizational structure, cultures, employees performance management and control for attaining the competitive advantage in the relevant industry. The strategy will be implemented in a way that it will provide the firm a sustainable competitive advantage by utilizing the resources in a systematic way and exploiting the business opportunities by reducing the threats and risks in the marketplace. Application of Strategy Implementation to ALDI Supermarkets ALDI is one of the largest retailing supermarket chains in the world that operates its businesses in 18 countries with over18000 stores at different locations across the countries. ALDI supermarket retailing chains stores offer a range of retail grocery products, packed foods and beverage items, sanitary goods, and other household goods. The strategy of ALDI is aimed at enhancing its market share, product positioning, sales revenues and gross profits in the global retailing industry by creating the brand awareness and loyalty in the mindsets of the customers. The strategy implementation aligns the strategy of ALDI with its vision, mission statement, goals, and values for the achievement of the goals and objectives (Australian Food News, 2015). The strategy implementation of ALDI is aimed at expanding the number of retailing supermarket chains and product varieties after adding the retailing items, such as furniture, liquors, sanitary articles, and other retailing items. ALDI implements three generic strategies including cost leadership, product differentiation, and focus strategy for getting a competitive edge by beating the competitors product development and pricing strategies. The strategy of ALDI supermarkets Australia is centered at meeting the customers needs and expectations by offering them high quality of retailing grocery items of its own brand at economic prices easily affordable to the average customers (Rothaermel, 2014). The product development strategy of Aldi is fundamentally focused on making changes in the quality of the grocery items as per customers needs and market demands. Key Idea- Business model Innovation The Business model innovation (BMI) is a disruptive innovation model that drives significant changes and innovation to the existing products or services for enhancing the brand value, product performance and positioning in the relevant industry. The business model of disruptive innovation bring all strategic business units interactively for creating innovation and creativity to the existing products or services (Augeneder, 2014). The disruption innovation model drives significant fundamental changes or technological advancements or shifts in the organizational structures, product development and manufacturing processes as per industry requirements, customers needs, and fluctuating environmental conditions. The disruptive innovation business model is highly focused on creating, redesigning, reengineering, refining, restructuring, optimizing, and disinter mediating into the existing products/service and business operations. The business model innovation assists to create new market opportunities as well as enhancing the value network by disrupting the existing value network and industry/market (Kalpan, 2012). The business model of disruptive innovation drives innovation, creativity, and flexibility to modernize the organizational structure, processes, and subsystem for attaining the high-growth success in the competitive marketplace. It enhances the adaptability and suitability of the products and services to the changing market conditions, diverse customers needs and growing environmental obligations. Application of Business Model Innovation to Apple Inc Apple is the leading American technological company that designs, develops, and sells the computer software (mac OS and iOS operating systems, iTunes Media Player, Safari Web Browser, iPod Portable Media Player, and Apple digital media player), consumer electronics (iPhone Smartphones, iPad Tablets, computers, laptops), and online services (iTunes Stores, iOS App Stores, iCloud, and Mac App Store). Silicon Valley Business Model is a type of disruptive innovation model used by Apple Inc. to drive innovation, creativity, and modifications/adaptations to the existing technological products and services, industry structures, processes, and subsystems (Stampfl, 2015). This model is based on innovation and entrepreneurship that focuses on creating value to the firm along with generating revenues. This business Model of innovation involves three elements, Innovation, value proposition, and operating model to create value to its products and services by transforming the innovative ideas into greater customer values. The key idea of using this business model innovation is to adopt new synergetic ways for creating, capturing, and delivering values to the customers. This innovation model is used by Apple to invest into the technological advancement and innovation, unique patents, reengineering ideas, and scientific experiments and inventions in the production processes for producing and launching the laptops, tablets, and mobile phones with the highly advanced configurations and unique features (Gassmann, Frankenberger, and Sauer, 2016). For example, the business model of disruptive innovation assist to enhance the product features and specifications, camera visibility, security features, service functions, and technological modifications of the iPhone smartphones, laptops, computers, and iPods. Conclusion From the above discussions, it can be concluded that two key ideas, strategy implementation and business model innovation were implemented for ALDI and Apple Inc. representatively for maintaining the sustainable position of the firms in the competitive marketplace. These key ideas will be effective for enhancing the product positioning, brand value, and competitive strengths of the companies in the relevant industries. References Augeneder, H. (2014) Implementation Strategies of Business Model Innovations within Established Firms. UK: Herald Augeneder. Australian Food News (2015). Aldi tries new strategy to grow bigger market share in Australia. [Online]. Available at: https://www.ausfoodnews.com.au/2015/05/20/aldi-tries-new-strategy-to-grow-bigger-market-share-in-australia.html. (Accessed: 9 April 2017). Gassmann, O., Frankenberger, K., and Sauer, R. (2016). Exploring the Field of Business Model Innovation: New Theoretical Perspectives. London: Springer. Kaiser, S. and Ringlstetter, J. M. (2010) Strategic Management of Professional Service Firms: Theory and Practice. London: Springer Science Business Media. Kaplan, S. (2012). The Business Model Innovation Factory: How to Stay Relevant When the World is Changing. USA: John Wiley Sons. Rothaermel, F. (2014) Strategic Management: Concepts. USA: Tata McGraw Hill Education. Stampfl, G. (2015). The Process of Business Model Innovation: An Empirical Exploration. London: Springer.