Chapter 7. Business Strategy: Innovation, Entrepreneurship, and Platforms
Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.
Also, provide a graduate-level response to each of the following questions:
- Describe a firm you think has been highly innovative. Which of the four types of innovation—radical, incremental, disruptive, or architectural—did it use? Did the firm use different types over time?
I need responses for peer posts
post from Karthick:
Innovations create the jump in improvement in any industry. It may not necessarily be a product; it can even be a process or working model of the firm (Frank T. R., 2021, p.486). The long-tail option suited Netlfix in selling their service for a profit even with the unlimited choice.
The Innovation Process
The Innovation process has the following four steps. The Innovation starts with the Idea. The Idea is the essential foundation of Innovation, and they provide the basis for the concepts and research conducted afterward. The Invention is the transformation of the Idea into fruition. The newest method or the product should be patented, and they should be provided the rights. The next stage is entering the customer market and making changes to the product or service in real-time. This commercialization will also help attain a competitive advantage known as the first-mover advantage (Frank T. R., 2021, p.572). The final step is Imitation by the competitors, which proves the change was unique and helped evolve the market.
Strategic and Social Entrepreneurship
With an economic risk involved, if the person tries to innovate, he is an entrepreneur responsible for bringing change to the competitive system (Frank T. R., 2021, p.574). Strategic entrepreneurship can help achieve this Innovation which can help manifest it by the step-by-step approach. The social results expected from such innovations are a plus.
Innovation and Industry Life Cycle
The industry Life cycle comprises multiple stages like introduction, growth, Shakeout, maturity, and decline. The network effects are presumably the driving factor on the product or service, which might increase its reputation. In the Growth stage, we will have a standard for either the product or process innovation. The Shakeout will occur once the growth has stabilized and matured. This stage will force the price and value to be decided and followed by fellow firms strategically. The Maturity stage will bring forth itself once the demand has been met, the growth is slowly decreasing, and the incremental development seems to fade away. The Decline stage will be due to the onset of newer technology or Innovation in the competing market. This stage marks the final stage of the cycle, and the firm will mostly be unable to recover unless the Innovation of the process or product occurs. The Crossing-the Chasm Framework depicts the representation of the consumer group during various stages of the industry.
The types of Innovation are divided based on market and technology. They are Architectural, Incremental, Radical, and Disruptive Innovations. Incremental Innovation is the slow and steady improvement of the established base product or service (Frank T. R., 2021, p.612). As the name suggests, radical Innovation involves drastic changes of the knowledge base with sourcing from a different sample set. Architectural and Disruptive Innovation attacks the markets they are in by diversifying the market with new technology or ground-up reboot changes due to the product. The Platform business is enabling the consumer and producers in the platform’s infrastructure.
Graduate Level Response
The highly innovative firm, in my opinion, is currently Tesla. The Tesla company has used several different types of Innovation over time. The electric vehicle company started with a Disruptive Innovation initially when it launched its first business model online and the complete electric vehicle Roadster. This car was a ground-up reboot of the vehicle, and it reimagined the whole automobile sector. They were faced with criticism initially and mocked by its competitors in the different portions of the market with gasoline vehicles. Now Tesla is a leading electric vehicle manufacturer, and all major companies are Imitating it and understand the elective vehicle in the future. The company has switched its Innovation model to Incremental to their cars in recent years, for example, the yolk steering wheel and fully autonomous driving capability.
post from Manish:
Chapter 7 explains in detail business strategy: Innovation, Entrepreneurship, and Platforms. One of the exciting concepts is about Innovation. New industries are frequently born because of innovations. FedEx’s overnight express delivery service was made possible by innovative IT and logistics advances. As a result, new companies like Amazon and eBay have taken the lead in online retailing. Medical diagnostics and surgery and aircraft components are being transformed by advances in nanotechnology, which can be found in various industries. Advanced artificial intelligence (AI) is reshaping many different industries, from call centers to healthcare and agriculture to logistics and transportation (Rothaermel, 2020).
There are four different types of Innovation: Architectural Innovation, Radical Innovation, Incremental Innovation, and Disruptive Innovation. Incremental Innovation builds on existing knowledge and continuously improves a current product or service offering, rather than starting from scratch. Instead of relying on old methods or materials, radical Innovation uses new ones, and it can come from an entirely new knowledge base or the fusion of two previously existing ones. With the aid of cutting-edge technologies, it aims for new markets. Architectural Innovation is a new product that uses existing technologies but reconfigures them in a novel way to open new markets. Disruptive innovations attack existing markets. This strategy starts at the bottom and works its way up the market (Rothaermel, 2020).
An innovation process involves developing a new idea that can improve results compared to before the invention was made. Companies invest in innovative ventures to ensure that their customers get more value from the commodities they buy and use. There are many examples of well-established companies that make good use of both incremental and radical Innovation. When it comes to Innovation, Apple is all about making people’s lives easier using well-designed products. Design and functionality are two of Apple’s critical differentiators for products and services. Another one of Apple’s competitive advantages is the company’s ability to be the first to market with new products. When it comes to new product development, Innovation is what spurs it. For example, iPhone, iPad, MacBook, iMac, and Apple Watch were all created because of Apple’s Innovation. Cost-saving measures are employed. By introducing new ideas, processes can be made more effective and efficient. The company’s innovation strategy incorporates cutting-edge new products and business models.
Furthermore, Apple is a trailblazer in emerging markets, creating entirely new market segments. The iPod, iTunes, iPhone, and iPad are just a few examples of the ground-breaking innovations created by the company. Innovation is at the heart of this company’s business strategy, which includes fantastic new products and innovative business models. Furthermore, Apple is a trailblazer in new business sectors and markets. Even after all these years, Apple is still pursuing incremental and radical Innovation in equal measure (Podolny & Hansen, 2020).