Competitive Strategy Product Innovation Management

Question: Discuss about the Competitive Strategy for Product Innovation Management. Answer: Introduction: Discussion on the Key Ideas Modern businesses must have competitive strategies to survive in the market environment. The actions devised by companies towards gaining a competitive advantage over its rivals after examining the strengths and weaknesses of the competitors are termed as competitive strategies. Typically, a company's competitive strategy incorporates steps to withstanding the markets competitive pressures, attracting a strong customer base, and firmly positioning itself in the market. Lechner and Gudmundsson, (2014, p. 36) argues that gaining market position in the global environment requires a company to establish realistic tactics and objectives. A company should state in its mission and vision statements what it looks forward to building. For instance; providing high quality and affordable products to the clients, establishing a one on one relationship with the customers, realizing its set objectives through the establishment of a conducive environment for the employees to work in, and carrying o ut its products for the optimal benefit of the investors. A good competitive strategy guides the management in understanding the competitive environment, designing the right value of brands demanded in the market, examining what resources are needed to produce the products, and coming up with strategies for maintaining sustenance of the product value. According to Shapiro and Varian, (2013, p. 18) a firm should design unique product brands that do not match with that of the competitors having used durable materials, for this makes the business compete effectively. With market challenges, for example; competitors employing newer technologies to the product substitutes, this calls for continuous product improvement. Further, a company needs to ensure that the features, cost, and power efficiency of the product are comparable to those of the competitor. Application in Wesfarmers Company Wesfarmers, a leading Australian company, focuses its diverse operations in providing a satisfactory return and services to the stakeholders and generates the majority of its income from the supermarkets and grocery stores in Australia industry. The main competitor for Wesfarmers in the Australian market is Wollworths Limited. Wesfarmers can benefit from the application of the above ideas of understanding the business environment, creating unique brands, identifying the direct customers, and understanding the competitor strategies, and this justifies Hamel and Breen, (2013, p. 66) argument.For Wesfarmers to benefit from these policies, it should apply them in the following ways: First and foremost, Wesfarmers should design a brand positioning statement that communicates the company's brand's unique value to the customers about Wollworths marketing report. Since Wesfarmers' customers are the supermarkets, grocery, and fuel retailers in Australia, and they share the clients with Wollwo rths, the management of Wesfarmers should clearly understand the attitudes and demographics of the target segment. Second, according to Gunday, et al.,(2011, p. 665), Wesfarmers should diversify ownership of business portfolio in the supermarket, hardware and departmental stores, energy distribution, and coal mining in such a way that sustenance of product value gets enhanced. Furthermore, Camison and Villar-Lopez, (2014, p. 2900) explains that the management should understand that the core competencies get based on the corporate resources regarding employees, physical, financial and technological resources. Therefore, Wesfarmers should establish strict policies regarding the qualifications required for one to get hired in the company, develop strong relationships with creditors so that the source of capital gets secured, and invest more in technology by creating a website that allows online commerce in the global market. However, Wesfarmers should come up with pricing policies such that their dealers do not sell beyond the standard price, and also establish a 24/7 customized online services whereby clients complaints are responded to immediately by customer care office. Business Technology and Innovation Model in PG Explanation of the Key Ideas Strategic technology and innovation management are significant to creating a competitive advantage. Currently, every industry in the business environment is adopting the use of sophisticated technologies that enhance creativity and innovation so as to increase customer value of a product or service. Kastalli and Looy, (2013, p. 180) argues that no business can survive in the current competitive industry if the human resources are dormant and less innovative to newer and affordable products for the customers. For a company to succeed in positioning itself firmly in the market, the management must invest hugely in great resources. For example, investing in an electric producing machinery. However, a company should not invest in producing products if it does not know who the target markets are and what the customers demand. Lechner and Gudmundsson, (2014, p. 60) state that before coming up with a new idea, the technical team should analyze the current market trends so that they may conf ront the business need with an accurate innovation model that meets all users needs. Most importantly, a company needs first to learn the competitors business models applied in addressing customer needs before implementing the idea. Further, during the implementation of the generated design, the technical team needs clearly to communicate the need for change to the management as well as explaining how the strategy would assist the company in competing out the key competitors. According to Ji and Deegan, (2011, p. 150), the new business model should not emphasize on short-term key performance indicators (KPI). The innovative idea should be designed to assist a company gain a competitive advantage in a going concern time frame, and leave room for becoming upgraded in case of technological advancements. Application in Proctor and Gamble Company Proctor and Gamble can benefit from the application of strategic technology and innovation management in its hair color, household cleaners, beauty products and other customer targetted goods and services. According to Ettie and Rosenthal, (2011, p. 285), innovative ideas need to be made happen, and the goals of a firm determine the kind of idea to get innovated. Proctor and Gamble company growth strategies which determine the type of technology to invest in includes transforming its skin care products, driving strong snack food growth, simplifying supply chain, and differentiating its sales through new growth channels. Embracing technological change has become mandatory for an organization to thrive in innovative position within the business as evident in Shapiro and Varian, (2013, p. 166). To gain a competitive advantage over Colgate-Palmolive, Prker Hannifin, and Avon Products, the management of PG should provide resources for the technical team to innovate new strategies that dep loy automated replenishment to improve availability and efficiency of its supply chain. Since PG has a large number of stores, there is a need to innovate an idea that ensures regular checkouts on the effectiveness of operations for the stores. However, with the innovation of new accounting standards, PG would save money and reinvest in other customer based services. Further, the technical team should use the innovated programs in leveraging customers loyalty and getting products supplied in a more timely fashion to the stores Camison and Villar-Lopez, (2014, p. 2902). Also, the company should innovate new technologies that enable customers to shop online since the clients would be able to save on transportation costs that they would have incurred while visiting the stores. All the innovative ideas should be unique and secured such that Proctor and Gamble cannot have access to the technologies applied in meeting the customer's demands. Therefore, investing in new ideas will help the company gain a firm position in the market and thus, enhance high productivity as compared to the competitors. References Camison, C. Villar-Lopez, A., 2014. Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67(1), pp. 2891-2902. Ettlie, J. E. Rosenthal, S. R., 2011. Service versus manufacturing innovation. Journal of Product Innovation Management, 28(2), pp. 285-299. Gunday, G., Ulusoy, G., Kilic, K. Alpkan, L., 2011. Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), pp. 662-676. Hamel, G. Breen, B., 2013. The future of management. 3rd ed. Oxford: Harvard Business Press. Ji, S. Deegan, C., 2011. Accounting for Contaminated Sites: how transparent are Australian companies?. Australian Accounting Review, 21(2), pp. 131-153. Kastalli, I. V. Looy, V. B., 2013. Servitization: Disentangling the impact of service business model innovation on manufacturing firm performance. Journal of Operations Management, 31(4), pp. 169-180. Lechner, C. Gudmundsson, V. S., 2014. Entrepreneurial orientation, firm strategy, and small firm performance. International Small Business Journal, 32(1), pp. 36-60. Shapiro, C. Varian, H. R., 2013. Information rules: a strategic guide to the network economy. S.l.: Harvard Business Press.