Competitive Strategy and Business Model

Question: Discuss about the Competitive Strategy and Business Model. Answer: Introduction: This report discusses two business keywords, which include strategy and business model. The report states the importance of strategy and business model for an organization, and their process and application in the organization too. The two organizations that are McDonald and Dell Ltd are selected to discuss what strategy is and importance of innovation in the business models in the organizations. Idea In actually, what strategy is and its implementation The word strategy is one of the complex keywords in the corporate world. Today, the reason for the failure of most of the startups or well set up organization is incapability of management to exactly define what are organization goals and its strategy. The strategy defines that where the organization is competing, how to strategically position itself in such that it pushes consumers to buy the products of the organization when a large number of similar products are available in the market. Along with this, it also defines that what uniqueness the product of organization has, what unique value organization create, how to sustain the values in the market and what resources organization uses to do the valuable delivery of the product (Kryscynski, 2015). There is a big difference between the goals and the strategy, and to get the success, it is necessary for the organization to separate those two things properly but with alignment. For example, if any organization calming that they want to be the low-cost provider that has value in the perception of consumers, then this is their goal, here the strategy of the organization is to find out the ways of low-cost production and delivery of them that is different from the other organization and creates a unique position. The actual meaning of strategy is to plan, design and implements the various activities to achieve the goals of the company. The uniqueness of idea is not the only way to get success, timely implementation of the unique idea is also required and this timely implementation known as a strategic implection and control (Freedman, 2013). Therefore, integration of idea and strategy is the sine qua non to get success for any organisation. Organization McDonald McDonald is the a famous chain of fast food restaurants having a presence in more than 120 countries. McDonald is one of the successful organizations in the global market which can be attributed to its successful strategy of standardizing processes (McDonald, 2016). There is also a large number of organizations in the market that are related to fast food chain but they are not as successful as McDonald is. The reason behind of success of this organization is to do proper defining of organization goals and organization strategy. The tactics that organization uses to deliver their product is very efficient. The organization sells hygienic food at the reasonable prices. The goal of the organization is to be a global leader by using different - different strategies. The organization acts as a domestic player but relies on the global market. They have different strategies in the different market. The organization makes its strategy flexible and implements it in the market as per the need of the business, for instance, pricing strategy. McDonalds target customers are the age group of 18 to 30, so it does pricing of its products accordingly (Verweire, 2014). The organization does not change the quality of product despite the change in price. McDonald does not have a same price of the product in the market. Somewhere the price of their product is high for example, in USA, UK and somewhere it is low such as in India as they customize their strategy as per the local market. Company maintains an overall strategy across the world and to some extent, it is customized based on the different cultural and local factors to achieve the overall company goals. Key Ideas: The success of business depends to a great extent upon the organization's business model. Business model has vital role in the success or failure of the organizations. To get success, it is necessary for the organization to reinvent their business model as per time and demand of the market. Those organizations that do not bring innovation in their business model, cannot sustain in the market. Nokia is the live example that came to bottom from highs due to obsolesce of its business model. Every organization has a good amount of productive employees, sufficient resources, and adequate market knowledge but all the organizations do not have same revenue generation (HSGUniStGallen, 2013). It is a business model that makes them different from others. The innovation of business model does not mean that organization change their whole business model or create that thing that has never been happening in the industry. Organization uses the adequate process to restructure the business model. Th e ideal process of restructuring business model is initiation, ideation, integration and implementation. It includes the analyzing of the current structure of business, compares with other business models, benchmarking, checking the consistency of the business, and then implement the changes that require for achieving success. However, the possible impact of change should be properly evaluated and analyzed before implementation to preclude the bad impact of the change in the organization. Sometimes the initial results came from the changes are negative but the organization should have a long-term commitment towards it (Kaplan, 2012). The business model is the heart of the organization and timely restructuring of it is mandatory for the organizations to keep running and maintain sustainability in the market. Organization Dell Dell is the multinational IT Company having a large customer base. The origin of dell is from the USA. The product line of dell is not large but it deals with limited product lines. The major products of the organization are personal computers, softwares, and printers. The organization was successful in implementing an innovative business model where customers could directly place the customized orders of PCs and laptops as per their requirements. The organization put full effort to maintain the productivity in the chosen business model (Dell, 2016). They also do a restructuring of their business model timely which has been the case over the period of last few years. Dell is famous for the innovation in their supply chain in its business model. Dell has various supply models. In one model, company sells their product with the help of retailers and their own exclusive stores like another company, and the second one is termed as configure via order and built as per customer desire. Und er this supply chain model, Dell makes the product as per the demand of the customer. The organization takes orders from the customer as per their requirements of features, organization take these order via their own websites. In this process, organization enjoys big profit because the organization makes a direct contact with customers (Afuah, 2014). These supply chain structure also increase the reliability, sustainability or trust of the organization in the market because these structures satisfies the actual need and desire of the customers. Conclusion: From above report, it can be concluded effective strategy which is well defined and effectively executed is the most important weapon of the organization to combat the competition in the market. At the same time, innovation in business model play a vital role in the success of the organization too. Innovation and creativity in its business model differentiate the organization from others as well as create a distinct value of the company in the market. References: Kryscynski, D. (2015) [Online]. What is strategy?. Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed: 24 August 2016] HSGUniStGallen (2013) [Online]. Business model innovation. Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed: 24 August 2016] Freedman, s. (2013) Strategy: A History. Australia: Oxford University Press. Verweire, K. (2014) Strategy Implementation. UK: Routledge. Kaplan, S. (2012) The Business Model Innovation Factory: How to Stay Relevant When The World is Changing. USA: John Wiley Sons. Afuah, A. (2014) Business Model Innovation: Concepts, Analysis, and Cases. UK: Routledge. Dell (2016) [Online]. Company Information. Available at: https://www.dell.com/learn/in/en/incorp1/about-dell [Accessed: 24 August 2016] McDonald (2016) [Online]. About us. Available at: https://www.mcdonalds.com/us/en-us/about-us/our-history.html [Accessed: 24 August 2016]