Innovation and Digital Strategies

Running Head: Innovation and Digital Strategies
Innovation and
Digital Strategies
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Innovation and Digital Strategies 1
Contents
Introduction......................................................................................................................................1
Incumbent-related Strategic Issue....................................................................................................1
Possible Future Strategy..................................................................................................................2
Impact of Strategy on Growth of Start-up.......................................................................................3
Opportunities to innovate in the digital economy............................................................................3
Use of Competitive Strategy............................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Innovation and Digital Strategies 2
Introduction
The purpose of this report is to guide the investors with start-up project ‘Herra Essentials’ and
opportunities gained by the company in the target market. The reports highlight information
about the incumbent-related strategic issues and ways in which the company would win against
existing incumbents in the business environment and remain profitable and competitive as well.
The latter part of the report explains opportunities for the business to innovate in the digital
economy along with the competitive strategy for the Herra Essential start-up so as to take
advantage of the opportunities present in the market. The company Herra Essentials is a start-up
venture that is involved in providing 100% natural products to the customers present in the
environment. The organization provides a varied range of essential oils to the people that are
extracted from different natural products like rose, tea tree, and rosemary etc. Each product
offered by the company has unique chemistry of formation along with distinct aroma that makes
good ingredient in aromatherapy, rejuvenation therapy. Further, more details about the digital
market activities of the company are discussed below:
Incumbent-related Strategic Issue
The company Herra Essential is headquartered in India, a place that is the hub for all the natural
and essential products. So, there are varied competitors present in the market including
companies like Young Living and doTerra that have diversified its market value to implement
success in the external market. Both the companies Young Living and doTerra have a large
customer base that insist them to implement in different ways. Resulting in which, both the
companies joined the digital platform to increment its sales (Stephen 2016). Different e-
commerce websites like Amazon, 1mg, Walmart etc. are used by the company to organize its
sales and maintain the level of interest of the customers in the target market.
It should be noted that digital media innovation is a revolutionary change that has attracted many
companies to use it and increase its degree of success in the target market. So, it should be noted
that the company also developed its website to increase the traffic on the online platform and aim
to increase the interest of the customers on social media activities as well. The strategic issue that
the start-up venture is going to face in the external environment is intensive competition on