Innovation and Strategic Management for Global Viability

This research paper analyses the tools that a company must implement so as to determine the strategic direction. It also discusses the importance of innovation and strategic management in achieving global viability.

Vital Source Strategic
Management
Contents

Contents...........................................................................................................................................2
Introduction......................................................................................................................................1
Thesis Statement..........................................................................................................................1
Purpose of Paper..........................................................................................................................1
Background......................................................................................................................................1
Discussion........................................................................................................................................1
Recommendation.............................................................................................................................3
Conclusion.......................................................................................................................................3
Balance Score Card..........................................................................................................................4
References........................................................................................................................................4

Introduction
Thesis Statement
“In today’s world of changing market structure companies must use different tools and
should innovate new techniques that would make their business profitable and globally
viable”
Purpose of Paper
The purpose of this research paper is to analyse the tools that a company must implement
so as to determine the strategic direction. Company must use different innovation strategy so as
to achieve the target of making a new and innovative product for its customers. They should use
different methods which will help company to innovate the product and to make their company
innovative benchmark in industry. This research paper would also help the reader to determine
the collaborative strategies through which they can reach mass number of people in the global
world.
Background
Till 1940’s strategies formation was a part of military exercises and was primarily used
during war or any other type of situation. The word strategy is derived from Greek word
Strategia and which entered in the English dictionary in 1688 as strategy. The term strategy is
now common for all organisation which helps them to innovate and capture new market while
making hold on previous market (Adner & Kapoor, 2016). The companies know a day create a
strategy that helps them to collaborate with other organisation so that they can use the advantage
of resources of that merged company. This report contains a study of this term that helps
company to become successful and to tackle the early stage of competitiveness in market. For
studying strategic management and technological development the company taken for the
purpose is TESLA which is the most innovative company in the world. It was incorporated in the
year 2003 and is one of the most technological advance company in the world (Wilson and
Gilligan,2012). Headquarter of the company is situated in California, USA.
Discussion
The word innovation and strategic management is usually defined together. These are the
concepts that an organisation should use in their daily strategy formation so that they are able to
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achieve maximum profit out of this. Companies sometimes has to do collaboration with other
companies so that they are able to maximise their production and are able to use some resources
of each other which they themselves are not capable of using. According to Michael porter the
word Strategic management can be defined as techniques for analysing industries and
competitors. Porter has created five forces model which helps the company to analyse the effect
and industry policy (Dodgson, 2018). Porter has also developed a value chain model that helps
them to frame an activity based competitive analysis of a firm. Companies should also use
different innovation strategies which would help them to design their product in a best manner so
that it appeals to its customer in a more gigantic way. It is important for the company to develop
a competitive advantage and differentiation that are derived by meeting the needs of unmet
customers. Company must analyse the needs of the customers and should formulate an
innovative strategy so that they are able to achieve the target of making the products which are
innovative and are more desirable to maximise the needs of the customers. It is discovered that
the customers consider around 50 to 150 metrics when they assess how well a product or service
helps them to achieve the role and satisfaction that is required by them (Dosi & Nelson, 2016).
There are different methods of choosing the innovation techniques that ranges from informal to
highly structured innovation and also from qualitative to strictly quantitative. These methods
help the company when used as a combination to completely evaluate the potential of the
innovative project. A company can different collaborative strategy when wanting to increase
their business to the global world. They can synergies the strategy of business and strategy of
partners so as to achieve the objectives through collaborations (Marr and Gray, 2012). This helps
the companies to evolve the business and to grow its significance. Companies can collaborate
with the partners can make joint ventures so that they can target the customers as a whole.
Companies should first develop a budget that helps them to see the resources in which they can
invest in the project. They should use the technique of capital rationing. They should rank the
project accordingly so that they are able to check which project is best suitable for them. The
companies can make collaboration using different techniques which would help them to achieve
the target of market capture these strategies includes making Alliances with the other companies
so as to achieve customer base and making innovation in the products that they often sold
(Hakansson, 2015). Companies should first analyse the financial position of other companies
with whom they are making strategic alliances. This would help them to achieve innovation in
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their product and use cost principle as an advantage. Also companies can use innovation network
as a technique that would help them to make their industry innovative and the products that they
offer becomes best in the world that meets the customer’s requirement as a whole. Also
companies can formulate joint ventures that would enable them to achieve the advantage of
collaboration but before doing so companies should analyse resources of each other. This would
make the firm more innovative and strategic compliance (Coccia, 2016).
Recommendation
Companies should be more versatile while taking the decision of strategic compliance and
technology innovation. They should formulate a plan that best suits their growth and helps them
to achieve the target of maximising the profits. Companies like TESLA which is most innovative
company should make use of collaboration techniques so as to sell their product in global
market. Their innovation techniques can be used as an advantage to other companies who has
best supply chain but lacks innovation. Companies while making any decision to collaboration
should analyse the financial statements and should form a budget as well as study the advantages
and disadvantages of collaboration (Alkhafaji and Nelson, 2013). Whether they will be able to
achieve the pre-set target as desired.
Conclusion
From the above research it is concluded that, innovation plays a vital role in the growth and
sustainability of the company. For a company to be successful in the global market has to use the
resources of the other companies in which they are not capable of achieving. Companies should
analyse the statements and benefits of collaboration so as to achieve the objectives. Strategic
compliance and formation of strategies are main function of the company which would help
them to achieve the required objective.
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Balance Score Card
A balance Score card of TESLA motors.
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References
Books and Journals
Adner, R., & Kapoor, R. (2016). Innovation ecosystems and the pace of substitution: Re‐
examining technology S‐curves. Strategic Management Journal. 37(4). 625-648.
Alkhafaji, A., & Nelson, R. A. (2013). Strategic management: formulation, implementation, and
control in a dynamic environment. Routledge.
Coccia, M. (2016). Radical
innovations as drivers of
breakthroughs:
characteristics and
properties of the management of technology leading to superior organisational
performance in the discovery process of R&D labs. Technology Analysis & Strategic
Management. 28(4). 381-395.
Dodgson, M. (2018). Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Dosi, G., & Nelson, R. R. (2016). Technological paradigms and technological trajectories.
In The Palgrave Encyclopedia of Strategic Management (pp. 1-12). Palgrave Macmillan,
London.
Hakansson, H. (2015). Industrial Technological Development (Routledge Revivals): A Network
Approach. Routledge.
Marr, B., & Gray, D. (2012). Strategic performance management. Routledge.
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.
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