Industry Evolution, Innovation, and Global Strategy: A Business Report

This report provides a comprehensive analysis of industry evolution, innovation, and global strategy, focusing on the concepts of smart movers and their advantages, particularly within the dynamic smartphone industry. It examines how companies like Apple have leveraged first-mover advantages to establish market dominance. The report further delves into industry life cycles, assessing the current stage of the smartphone market and the factors influencing its growth. Additionally, it explores global strategy using Porter's Diamond Model, evaluating Coca-Cola's competitive advantages and strategies in the global market, including aspects such as branding, marketing, and responses to market challenges. The report combines theoretical perspectives with practical examples to offer insights into business strategy and market dynamics.

ASSIGNMENT
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Table of Contents
Question A: Industry evolution and managing Innovation........................................................2
Question B: Global Strategy......................................................................................................4
Question C: The Future..............................................................................................................8
References................................................................................................................................11
Appendix I: PESTEL...............................................................................................................13
Appendix II- SWOT.................................................................................................................14
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Question A: Industry evolution and managing Innovation
1.
Smart mover refers to a service that gains competitive advantage by the help of getting first to
the market with a product and the service. Being first in a particular industry or in a particular
segment of product helps a company to increase the brand recognition to a significant extent.
In most of the cases, first movers are followed by competitors that try to capitalize on the
success of first movers. In some cases, the competitor can gain distinctive market share.
However, in most of the time, the first movers can make a prominent market share that can
help them to build a solid customer base (Sabatie and Chollet, 2017). It helps in maintaining
the majority of the market and it is known by First movers’ advantages.
When the cost of leaving the first mover to the competitor is high, it is harder to the
competitor to gain traction, especially where the market is mature or has stopped growing
fast. Adobe's Photoshop for instance is pretty entrenched for professional photographers.
Similarly, where the value to the customer increases based on the number of customers who
are using the first mover's product, it becomes harder to compete (Yang et al. 2017). Ebay is
an example of this where sellers are trying to find large number of buyers for its products,
such that competing auction businesses of Amazon and Yahoo did not succeed in the US.
One way to compete with the first mover would be to target an underserved segment, such as
Picasa for people who want a simple photo editing software.
Smartphone industry is one of the most lucrative industries in the contemporary world.
Smartphone industry holds a significant market share in the contemporary business industry.
Due to the emergence of technology the Smartphone market to a significant extent.
Smartphone market is a growing at a rapid pace in the last few years. The smartphone
industry also had a first mover which was apple. Apple has succeeded in the Smartphone
industry because of its first mover advantages. The company has procured distortive
innovation by releasing iPod and iTunes. iPod was the first ignition towards the Smartphone
boom of Apple. In 2007, the company has launched iPhone. Although the company was not
the first company to build a Smartphone, but it was the first one to develop a great touch
screen phone with single click app purchase. Due to their first mover advantage Apple has
become global leaders of Smartphone industry. With their shipment of a consumer multi
touch product iPhone, they recently capture 80% of the profit in the biggest consumer
electronics market of all time (Hirose et al. 2017). The company has procured certain
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technological leadership that plays an important role in terms of procuring better outcome
within the study. From theoretical perspectives, it can be identified that there is certain
benefits and drawbacks related to the problem. The technological leadership introduces a
number of critical aspects that play an important role in relation to the stability of the
organization.
From this specific set of information, it can be concluded that apple procured a smart mover
advantage in this Smartphone industry. However, a number of companies has integrated
within the market and identified that the efficiency of the study is maximized in this scenario.
Apple has done prominent business in the current Smartphone market and procured a lot of
loyal customers. Besides being a first mover, Apple also integrates multiple essential element
within the perspectives of the organization. Apple has set to be the most efficient
organization in this scenario.
Figure 1: Apple Revenues
(Source: Ma et al. 2018)
2.
The Smartphone industry has seen a solid growth in the last few years. The emergence of
companies like apple and Samsung has seen one of the most crucial elements within the
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contemporary service. In this connection all the significant characteristics of a certain
company influences the factors of the life cycle stages of Coca-cola. Some alarming
conditions can be identified within the business of coca-cola. The delivery of the service of
Coca-Cola influences the most effective element within the contemporary scenario.
According to IDC, the industry has seen single growth for the first time in its life cycle. It can
be identified that China is the biggest Smartphone market across the world. India is the
second biggest Smartphone market (Cieślik, 2015). In this connection, however, it can be
seen in recent days, that the economic downturn has significantly affected these two
countries. For this reason, the growth on the Smartphone market has significantly declined.
A lot of researchers have opined that the Smartphone industry has reached its maturity level.
However, it is not very efficient to procure such assumptions only based on market
penetration (Menzel and Kammer, 2019). There are a lot of other factors associated with this
issue. Emergence of cheap products in emerging markets is another reason behind this issue
Thus, it cannot be surely said that the Smartphone has reached its maturity stage or not. As
the technology is rapidly upgrading, there is a significant chance for the smartphone
manufacturers to improve the growth. Therefore, it can be stated that smartphone is currently
in the groth srafe. Indusytry life cycle can critically measure the primary aspects happening in
the industry now. Industry life cycle includes all he stages associated within the context of the
tudy. It an be identified that a;l the effective elemt eithin the study needs to be managed
efficiently fr improving the standad of the products. The industry life cycle model include
different stages ehere the business progress, operate and prospect slums within an industy. An
industry life cycle consist of fivertypical stages. Start up, groeth, saheout, maturity and
decline. All the stages have different times. In start up phase , the distribution channel is still
underdeveloped. Distribution channels are the primary aspects that play an important role in
the primary aspects of the product. The Growth stage involves all the effective lement to be
considered effectively and with utmost care for better possibility within the organization.
Apple makes the map according to the largest bullies. Russia has captured some of the land
from Ukraine and apple just made it Russian on the map. There are some aspects that are
demerits of apple and their business policy they maintain. The business policy lag sometimes
as their products are too much expensive and they should maintain quality of the product. If
they face bad feedback from the customers then they face a huge number of problems in the
industry. As apple is one the best in the market and their logo means a lot to the customers as
they are paying a lot to buy one. So if they face problem then they don’t hesitate to raise their
voice. So apple needs to maintain a good quality in their products, they faced a huge problem
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when the economy was down. The company should distribute and expand their business
worldwide.
It can be identified that in industry life cycle, the development of a certain product is
explained very neatly. However, there is a significant lack of explanation tat incorporates the
accountability of the study. In this connection, all the influential activities need to be
managed efficiently for improving thru management of the organization. It can be identified
that the Smartphone is in the growth stage that involves all the essential ability within the
context of the organization, the industry life cycle should be evaluated effectively before
starting a new project regarding introduction to new product and its promotion.
Question B: Global Strategy
1.
Porter’s Diamond model is a strategic economic model that attempts to explain the reason for
which one nation state is very successful that another for a specific industry. The model
identifies that there are four significant determinants associated within the context of the
study (Lieu and Tsai, 2017). These four determinants include Firm strategy, Structure and
Rivalry, demand conditions, related supporting industries and factor conditions. All these
determinants are required to be taken into account within the domain while identifying
whether coca cola gains a competitive advantage from being an American company or not.
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Figure 2: Porter’s Diamond Model
(Source: Zhang et al. 2019)
They haven’t patented their recipe, thus keeping it a secret and preventing others from using
it. Rip-off products can be made, but they’ll never be the original recipe. This also reduces
costs, because patents are expensive and must be renewed.
On top of this, they have a standardised marketing strategy. Having a standardised marketing
strategy gives potential markets a consistent message from the corporation; allows Coca-Cola
to reduce costs by having one single marketing team, the one marketing team is also easier to
manage; the standardised marketing strategy also leads to better differentiation between
Coca-Cola and other soft drink businesses (Markiewicz, 2019).
Coca cola has been the most popular drinking and Beverage Company in the world. Coca
cola has dominated the market since it was created. The biggest competitor in the market of
coca cola is Pepsi co. It was not so easy job to coca cola to establish their business in the
market without any hesitation. In the way of capturing the global market coca cola has faced
many sequences in order to stay in the market. Few things application in the market made
coca cola a brand and spread their product in different part of the world (Tocci, 2016).
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It is not easy to do the business in another country and make their business worldwide. They
have targeted the segment of the world market and find out that the best way to get in any
country through it sports medium and sponsoring the players as they required. They have
started their brand endorsement in different country in terms of sports. They have started to
sponsor different sportsman kids and their relevant thing used in the sports and started
organizing the sports as a soft drinks and beverages company (Hasan and Ali, 2015). They
have created a good impression in the market. People were falling for the product in the
different places. That’s what created the demand of coca cola first time. They have started
earlier the soft energetic drinks to the players and now they have started the soft drinks in the
market officially. People have integrated the facts about the good sides of the product and
ready to have globally without any hesitation. As their business going well they have faced
some problem in the market by their governmental policies (Vogelmeier et al. 2017). In India
in the year of 2009 it was reported by the science and environ department by the Indian
government was trying to establish the fact that it is not good enough for health due to its
alkaline content mix with the water. And also they have accuses that the water used in the
soft drinks is not good enough due to its unbalance pH level. After passing the product from
the laboratories they have again establish themselves in the market. They have maintain the
all quality issue arise in the consumers mind and gave them the complete satisfaction in the
field of quality and able to stand in the market once again with more potential. Therefore they
have always tried to make themselves clean before consumer and highlight best possible way
to utilize it in good aspect (Child, 2015). In that way they have finished all the national
differentiation in several country. American society and also other countries have supported
this product in different event and endorsement of celebrity in the brand aware them about
the maintenance of the good quality of the product and make they alive in the market. In
order to finish the national differentiation they have created the best possible way and again
have that sprit to back in the market positively (Samiee and Chirapanda, 2019).
2.
Resources and Capabilities Model
Resource and Capabilities model includes two effective elements that are tangible and
intangible context. The intangible and tangible assets must be heterogeneous and immobile.
They also have to include VRIO attributes for becoming VRIO resources. VRIO resources
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provide competitive advantage. This model plays an important role in relation to the
association of the study.
Figure 3: Resources and Capabilities Model
(Source: Kaufmann et al. 2015)
The company as integrated global functions by using different strategies such as Quality of
Products, Marketing Expertise, Management Expertise, Employee Loyalty, Shareholder
Loyalty and Quality of People overall.
The Company has made some mistakes but resolved them timely enough. There is an old
adage in management for successful organizations called “stick to the knitting” that implies
keep in line with what the company’s mission and purpose is. I believe The Coca-Cola
Company does that for the most part (Lo et al. 2017). Proprietary technology, recipes and no
initial criticism of sugar and damaging effect on health, weight and teeth allowed them to
keep growing. Then standard monopolistic practices that would not be allowed in today's
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world could not stop or even slow down their growth. They also bought the rights and recipe
to Sprite from a German company (Key and Czaplewski, 2017).
Being an American company COCA COLA is the world’s largest beverage company and is
distributed in most parts of the world. It provides customers more than five hundred brands. It
includes products such as Fanta, Coca cola zero, PowerAde and Minute made. It is mostly
reputed for maintaining its environmental balance; it also maintains a good economical
development. It maintains a structure policy to maintain the growth of the company. Manager
can make changes in the structure (Key and Czaplewski, 2017). The company has well
developed policy to check overall development of the company as the company is situated in
different parts of the world. It is a carbonated drink which is used worldwide. Its marketing
strategy has made it a dominant soft drink in the world. Coca Cola is one of the best known
products in the world. Coca cola always wanted to create its difference and value in the
world.
They had put a good marketing effort to make the best of it. Their advertisement policy was
all over the world and with great numbers. They got a huge number of responses and good
feedbacks worldwide.
Being an American company they got good advantage to connect throughout the world very
easily, so being the one of the best beverage company they made is dominance with other
beverages companies (Morgan et al. 2019). Coca cola is used in each and every aspect such
as while travelling and it is almost available in all other centered areas where the customers
are more. They advertisement are all over the roads, buses, trains etc. As we know sports play
an important role, so all the huge teams made sponsorship and engaged with the brand. This
made a huge impact globally as sports is followed all over the world. This marketing policy
made Coca Cola the most reputed company in the world. The trade mark of coca cola was
famous all over the globe. During their brand name discussions many of the names came into
play and got rejected. The release each market product with huge meetings and make it a
unique identity (Ferrell and Speh, 2017). The development process of coca cola was very
much different from other companies. Their rules and regulations are very much unique and
dissimilar from others so making them one of the best beverage companies in the world with
huge amount of respect and good reviews from the customer. Their taste is unique and for
maintaining that they maintain a strict policy so that others don’t know about the process of
making it. These ingredients are very much confidential. The container of coca cola is very
much well designed and the quality is quiet fantastic.
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Question C: The Future
The company has been taken here as Apple. Apple has been one of the most prominent
companies in the world that made a significant impact on the context of the study. Apple is
very renowned for its disruptive innovation. However, the changes in growth of smartphones,
Apple have faced significant challenges due to this. In this section, a brief recommendation
about the possible strategic actions of apple is discussed. It can be identified that the external
and internal environment needs to be analysed. For this reason, a pestle and a SWOT analysis
has been done for the improvement of the study (Morgan et al. 2019). The implementation of
the strategic actions is involved within the course of the study. The PESTEL and the SWOT
analysis table are given in the appendix.
The PESTEL analysis helps in identification of the crucial element soft h study PESTEL
analysis involves multiple contexts within the accountability of the study. The PESTEL
analysis helps in analysing the external environment of the company. It is very important to
procure decisions related to marketing of the organization (Ferrell and Speh, 2017). The
factors in the external environment include Political, Environmental, Social, Technological,
Economic and Legal factors.
Political
China-US trade wars are a primary political issue that influences the performances of apple in
a negative way. Apple and Ireland Government includes interest dispute of Apple more than
$15 Billion. Known as one of the leading taxpayers, political issues can affect the
performance of the company at the financial level.
Economic
There are multiple economic factors such as economic growth, deflation. inflation,
unemployment ate and wage policies can hamper the performance of Apple. On the other
hand, on a number of first world country’s economic stability plays an important role within
the context of the organization (Kaufmann et al. 2015). The economic influence of Apple
influences all the critical factors within the development of the organization.
Social
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The social factors include a lot of essential element such as urbanisation trend in the third
world countries. The problems between US and China can also affect the brand image of
Apple.
Technological
The technological development in the Smartphone industry has both benefits and drawbacks
in relation to apple’s performance in the market. In the primary days, Apple was considered
as the pioneer of Smartphone market. However, some prominent companies are currently
coming up with new innovation that can harm the business of Apple.
Environmental
The environmental aspects include multiple effective elements within the delivery of the
organization. In this connection, the luminary solution is the most important element of the
study. Apple has recently emphasized on energy efficient product. The company has also
taken some prominent steps within the sustainability context of the study (Morgan et al.
2019).
Legal
Primary issues associated within the context of the study. Legal factors influences a lot of
essential element associated within the context of the study. The telecommunication
regulations also hamper the performance of Apple (Ferrell and Speh, 2017).
Apple is a company that focuses mainly on features that differentiated the company and all its
products with the competitors.Its mission is to bring the best user experience.It always make
changes in their marketing strategy to maintain them in the top.
STRENGTH
 Strong brand image
 Apple has its own made processor i.e IOS
 Its privacy is the best among all other brands
 High profit margins.
 Rapid innovation processes.
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WEAKNESS
 It has premium pricing strategy.
 Limited distribution network
 Dependence of sales on high end market segments
OPPORTUNITIES
 Sales volume is very much high.
 Expansion of the distribution network
 New product lines should be developed.
THREATS
 It faces aggressive competition.
 Imitation
 Labour cost is increased in many countries.
Recommendation
In order to manage their position in the global Smartphone industry some strategic moves can
be taken by Apple. Based on its current needs, the following recommendations are followed.
 Firstly, Apple should introduce a new product in the market that fulfills the current
consumer needs of the Smartphone industry.
 The company can procure new strategies to improve its potential customer base at
global level.
 The company can use strategic pricing to attract more customers as they have a high
brand value.
There are many places in the world where the reach of Apple is not there. Sometimes
problem arises when the customers give poor reviews of the products. Apple made a proper
policy to maintain that and they are always down to the customers. Sometimes it also happens
that the categories that differentiated the product is not at all to the market reach, some place
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losses the opportunity to buy their products. Apple has mainly focused in digital marketing
strategies so to expand their mark worldwide. Internet plays a huge role now days in the
process do advertisements and apple are pretty much good in the market. Their advertisement
is all over the internet to capture customer’s eyes. This made a huge profit in the business the
strategy all over the globe. Marketing strategies are well maintained by apple. The logo
makes all the difference in the market. As it is one of the richest brands and have a huge
impact in the market. Customers are very much satisfied to the products as they spend penny
on it. Last but not the least the brand name makes all the difference in the market. This is
based on the current scenario.
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Appendix I: PESTEL
Political
 China-US trade wars
are a primary
political issue that
influences the
performances of
apple
 Apple and Ireland
Government
includes interest
dispute of Apple
more than $15
Billion
Economic
 economic growth
 deflation
 inflation
Social
 urbanisation trend in
the third world
countries
 The problems
between US and
China
Technological
 Apple was
considered as the
pioneer of
Smartphone market
 some prominent
companies are
currently coming up
with new innovation
that can harm the
business of Apple
Environmental
 the luminary
solution is the most
important element of
the study
 Apple has recently
emphasized on
energy efficient
product
Legal
 The
telecommunication
regulations also
hamper the
performance of
Apple
17

Appendix II- SWOT
Strengths
 Strong brand image
 Apple has its own made processor
i.e IOS
 Its privacy is the best among all
other brands
 High profit margins.
 Rapid innovation processes.
Weakness
 It has premium pricing strategy.
 Limited distribution network
 Dependence of sales on high end
market segments
Opportunities
 Sales volume is very much high.
 Expansion of the distribution
network
 New product lines should be
developed.
Threats
 It faces aggressive competition.
 Imitation
 Labour cost is increased in many
countries
18