Analysis of Strategies Related to Change and Innovation that Provide a Competitive Advantage

Different Strategies Associated with Incremental Change and Radical Change

Incremental  change means that programs and organizations can be developed over time by making minor alterations such as changing components or activities therefore building on the status quo. For example, continuous improvement in quality management process or implementation of a new computer system to increase efficiency is an incremental change. Normally, incremental change is an exercise that slowly gets more difficult. This process allows more time for data collection and can help managers track performance of a program and learn which problems need to be addressed. This improves efficiency productivity and competitive differentiation. We can apply different strategies for incremental change. It is important to build an understanding of customer needs through conducting qualitative interviews, surveys and idea management software. Align your team with innovative methodologies and pivot the approach in the moment to minimize revisiting the research process afterward. Always build Riskiest Assumption Test (RAT) to help identify and invalidate key misconceptions and determine whether customers are interested in the concept before investing in it. Finally, communicate constantly with customers to help gain a better understanding of customer experiences, needs and responses towards new concepts and features.

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Radical change is change that occurs relatively fast and usually modifies the essence of social structures or practices in an organization. This change affects the resources, norms and interpretive schemes of groups and individuals. In the real world completely transforming how a company is structured and cultured is a radical change. To bring about radical change in an organization, adopt a coaching or training environment in the company culture. Companies can use proactive, active, reactive and passive strategies for radical change. Active strategies predict a healthy change in customer needs and rapidly grasps the market opportunity. Reactive strategies slowly adapt and embrace the market and technological dynamics. Passive strategies delay the process of change until the business comes up with a contingency plan that accommodates and counters risks and threats.

Example Where Incremental Change Is A Better Solution And One Example Where Radical Change Should Be Considered. 

Incremental change is preferred whenever the result of the change is unforeseen and the conditions where resources are inadequate. For instance, when a company wants to venture into production of a crude product without adequate resources, a wide range of knowledge and research, and where analytical predictable outcomes are not certain. The firm has to be well advised to proceed by implementing incremental changes (1). Radical changes are considered where companies have huge fiscal resources, broad and perfect knowledge of the market and technology, cutting edge innovations, and adequate and skilled human resources.

A Scenario Where A Push Or Pull Innovation Would Provide A Competitive Advantage

Push and pull innovation is any innovation that involves deep knowledge of both a problem and a solution. Push marketing requires pushing your brand in front of potential customers by advertising or promotions. Pull marketing requires implementing a strategy that naturally draws customer interest to your products. Push innovation is enhanced by immediate payback while pull marketing is essential in the long run (2). This innovation is influenced by internal development or research activities to enable supply chains to facilitate distribution of goods or services while pull change motivates potential customers to seek a specific product where the producer has a strong brand. Successful firms that aim to have a competitive advantage in the market and technology investments apply push and pull strategies (1). This enables them to make profits now and in future with the objective of getting specific products to its intended target market.

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Therefore, push and pull innovation promotional strategies. In a production organization, the push strategy works to boost sales for items that have low value as the pull strategy fosters and motivates customers to acquire a particular brand. This will lead to various results: For starters there will be a high demand for a particular brand with retailers stocking the product in bulk. Moreover, the customers will be aware of the existence of a particular product and demand more, increasing sales and marginal profits.

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Reasons Why Entrepreneurs Should Follow An Innovation Strategy

Entrepreneurs consolidate all factors of production, such as, labor, land, capital and human resources. They have a responsibility to identify, formulate an d implement innovative strategies to ensure the success of the business. They have to adhere to innovative strategies to increase competition. Innovative strategies give a company a competitive advantage by having a unique attribute that distinguishes it from the rest of the firms in the market. Entrepreneurs have to continuously and consistently come up with innovative ideas to achieve company’s mission, vision, goals and objectives. Innovative strategies aim to satisfy customer needs. With the increasing consumer’s expectations, desires, taste and preferences, entrepreneurs have a responsibility to indulge in research and development of innovative strategies to satisfy the unlimited customer needs. These strategies maximize profits while decreasing costs of production.

The main objective of any business is to make profit, therefore, entrepreneurs have to come up with newer methods of increasing sales, decreasing production costs and avoiding hidden costs, with the aim of maximizing profits. Strategic innovation requires entrepreneurs to implement the right framework for better outcomes. First, an entrepreneur should determine the causes and underlying issues in the organization and come up with ways of tackling them. The process of strategic innovation requires planning, directing, organizing, staffing, monitoring and evaluation of the ideas being considered (2). Planning is the key and most central part of the innovation process. Entrepreneurs use this process to solicit advanced solutions for their frameworks. Organizing and directing the staff is integral to the innovation and invention process. A structured work plan and collaboration from all stakeholders in the organization ensures favorable strategic innovation implementation.

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