Competitive Strategy Strategy Formulation

Question: Describe about the Competitive Strategy for Strategy Formulation. Answer: Strategy: Key ideas: According to Aljneibi et al., (2015) in the present world business is considered to be modern wars and the business strategies are considered to be the war weapons. Therefore, the executives of the companies require constructing a set of strategies which are complex and lead to Victory. There are many different concepts and definitions given on the strategy, however; most of the companies could not distinguish between the strategy and the different objectives and tactics of the company (Rothaermel, 2015). A good strategy or for the formulation of a good strategy, a few points are needed to be included: a) Place: This one of the important question that requires being answered before the formation of the strategies of the company. Before planning the company strategies, the company first needs to decide and analyze the place where it requires selling its products and the competitors with whom it has to compete. b) Product: The next question is what ways can the company about the type of the product which the company deals with. The kind of product dealt with the company requires the appropriate market for its selling. c) Resources: For the development of the strategies the company also requires to focus on its resource availability also. For the implementation of the strategies that have been formed by the company, there is a requirement of the resource. d) Value sustention: The next factor is that in what ways the company could provide its customers with good and unique products so that it could keep up with the interest of the companies and maintain the sales flow of its products (com, 2016). Organization that would benefit from the application of strategy in their management: There are many of the companies that started well but do not have an effective management and marketing strategy for their business. As such is a company named Borders, a global book retailer that was founded in the year 1971. This was a company that at the starting had a very good employment services, and everyone there worked with utmost interest and sincerity, and the customer response was also excellent responsive. The company established its success for almost 20 years and then got acquainted with a department store chain named Kmart. Kmart was store chain that dealt with the clothes, jewelry, and toys. The two store chains were merged with a forecast of great success together. However, this did not turn out to be a success. The Borders earlier management team started leaving the company, and the customer response also got Detroit. The customers of the Borders were much interested in the book that it provided its customers with instead of the new chain of the clothes, toys and j ewelry that it collaborated with (TIME.com., 2016) In this case, the problem with the Borders Company was the strategy that it could not understand the product requirement of its customers. The problem with the Kmart Company was that it could not recognize the appropriate market place for the sales of its goods and instead collaborated with the Borders Company that does not have the correct market for the Kmart product. If these companies had applied their market strategies in a better way, these companies would not have poor management and organization (Hill, Jones Schilling, 2014). Business model innovation: Key ideas: Innovation is the most important and the key factor for any company to reduce or avoid its defeat due to dependency and also to survive and be competitive in todays world of competition. Innovation does not entirely refer to the innovating of the new technology and new development. It refers to the reconstructing and reinventing the already existing business model of a company. It could be described as the ability to learn and absorbing the techniques and the other important factors from the other companies and implementing them in the own companies so that the existing business model of the company could be improved (YouTube., 2016). This could be done by process of initiation, ideation, integration and implementation. Initiation means to analyze the own business model of the company for better assistance. Ideation is the confronting of the existing business model of the company with the 55 business models and developing and improvising the existing model. Integration is the checkin g and assuring of the consistency of the improved business model. The last step, implementation is the actually implementing the improved business model in the day to day business of the company. There are different techniques of the business model innovation used by many of the well know companies. Such, the Gillette is proving razors to the world at a very low price. However, the price of the blades of the company is obscenely higher. This is the business model innovation as the razor would definitely require blades and therefore, people would have to buy the blades so that they could use the razor. Organization that would benefit from the application of business model innovation in their management: The Blackberry, one of the most leading brands of mobile phones and business phones at a time, could be an example of a company that got Detroit because of not adopting new business model and to adapt the changing of the world. The company got its sales graph increased very fast and according to the graph also decreased. The Blackberry failed to adapt itself to the changing time and the changing taste of their customers (Martins, Rindova, Greenbaum, 2015). The customers with the rise of the Apple iphones and other android based smart phones, the passport smart phones of the Blackberry Company got demised somewhere in the middle. Slowly the taste of the consumers changed, however, the business model of the Blackberry yet remained the same. This dropped the total sales position of the company and in the present, the total market share of Blackberry is only 3%. However, now the Blackberry has realized their mistake and is now working on the improvisation of the business model. It has b een expected that Blackberry would regain itself and recover in a few years, however, it still would way far back from the companies like Apple and Samsung (Global.blackberry.com) References: 5 Reasons Borders Went Out of Business (and What Will Take Its Place) | TIME.com. (2016).TIME.com. Retrieved 10 September 2016, from https://business.time.com/2011/07/19/5-reasons-borders-went-out-of-business-and-what-will-take-its-place/ Aljneibi, S. S., Pollard, D., Soliman, A. (2015). Effectiveness of Strategic Evaluation's Tools on the Continuity of Internal Operations: A phenomenological study of the MOI in UAE.INNOVATIVE ORGANISATIONS AND GLOBAL MANAGEMENT: ISSUES AND POLICIES, 13. BlackBerry Enterprise Mobility, BBM, Smartphones Support - Global. (2016).Global.blackberry.com. Retrieved 10 September 2016, from https://global.blackberry.com/en/home.html Business Model Innovation. (2016).YouTube. Retrieved 10 September 2016, from https://www.youtube.com/watch?v=B4ZSGQW0UMI Hill, C. W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Martins, L. L., Rindova, V. P., Greenbaum, B. E. (2015). Unlocking the hidden value of concepts: a cognitive approach to business model innovation.Strategic Entrepreneurship Journal,9(1), 99-117. Rothaermel, F. T. (2015).Strategic management. McGraw-Hill. What is Strategy?. (2016).YouTube. Retrieved 10 September 2016, from https://www.youtube.com/watch?v=TD7WSLeQtVw