Business Models Strategy and Innovation Services

Question: Discuss about the Business Models Strategy and Innovation Services. Answer: Introduction: Technological changes in the business world have increased at a higher rate. The changes are as a result of intense competition which has made the entrepreneurs more creative and innovative in an attempt to attract more customers. Unique services and products have a tendency of attracting the consumers to try or buy them. Competition is something that businesses cannot avoid, and therefore they must come up with strategies to remedy the situation. Some of the strategies include foreign trade where the company attempt to start a business in foreign countries with the aim of getting more customers for its goods and services. Globalization is a fundamental element of sales in the current world, and it is motivated by the better methods of transport and communication (Teece, D. J. (2010, pp. 172-194). Oz supermarket a new supply chain in the market has employed significant innovations. According to Michael Porter, new market entrants have the responsibility to bring new unique products to get customers. The firms beginning business faces high competition from the real company, and therefore there is the need to do thing better and in unique ways to enable the customers to notice their efforts. The new market entrance has high risks, and only optimistic managers can take it as the probability of failure is very high for the firms. However, there is the need for the managers to do adequate research about the market environment and be able to come up with the best penetration strategy. A good penetration strategy ensures that the company with have a competitive edge over the other competitors. The Oz Supermarket plan is magnificent at it aims at making the shopping of customers comfortable and convenient. The Pay Wave technology they have adopted makes customers spend less time in th eir shopping as everything is done using the card. These give the firm an advantage as all clients always look for ways to get their goods easily and at minimal time spent. The customers do not have to stand in long queues waiting to be served by the cashier in the supermarket and just picks goods and exits the store as all the transaction have been made for him/ her through the computerized systems (Porter, M. E. (2008, pp. 25-40). The method used by the company as advantages as it is time-saving for the customers who spent small time in buying their desired products. It also cuts costs of the management as it needs very few employees to run. It is secure as the card identifies the customer and any problems he can be traced. However, the system may lead to impulse buying among the customers as cards are tempting always to buy more. The system also needs continuous monitoring to ensure that it does not fail and inconvenience business. Through this method, the company is assured of high sales as customers use cards to do purchase. Finally, this is a good market entrance strategy by the Oz supermarket, and the sales will be high. The services are unique and very convenient for the customers as they are no many procedures to be followed. The company, however, should seek to improve the systems further. The customers have to put the items in the trolleys for the items to be counted if the customer removes it is deleted. A concern arises if the customer does not put goods in the trolley what will happen? Does this mean the customers won't be charged for the item as the item only detects goods in the trolley? The system has challenges, but there is a need for fewer changes. New customers may be resistance to the idea of getting the cards when doing shopping. This act limits the number of people who can access its services since a pay wave card is a must for purchase. Despite the few challenges the company strategy is magnificent and needs significant supervision by the managers to see its success. The manager also needs to see the need to stock a large variety of products in the supermarket to make customers be able to get all the products they need under one roof. These would mean more sales for the business and thus high-profit margin. The company, however, needs to create awareness to the potential customers about its existence and products it offers to get a large customer base. Technology in the Oz supermarket is used to create the uniqueness of the business. The new trend of shopping by customers will attract them to experience it thus create a market for the company products. Managers must ensure that they use technology, creativity, and innovations to have a competitive advantage in the market (Mintzberg, 2009). The customers are the people who ensure business continuity through the buying of its products. They are always attracted to better goods and services. It is the responsibility of any organization to put a priority in catering the needs of its customer. Satisfaction of the customers will always ensure that the customers return for more goods and also recommend the business to other people. Through this act, the steady customer base will increase resulting in high profits for the company. Customers are key stakeholders to the success of the business. Technology has brought new ways of the enterprise to ensure satisfaction of their clients. Managers, therefore, have the duty to carry out continuous market research to be able to know what changes have emerged. Businesses to achieve the competitive edge must conform to the methods of operation to enable products unique and of high quality (Wilson, A., Zeithaml, V. A., Bitner, M. J., Gremler, D. D. (2012). The services that customers get from any company determine whether they will come back for more. When the products meet their expectations is a guarantee for them to return. Managers should work towards surpassing the customers' expectations by providing products of excellent quality. Through this, the client loyalty will grow. Achievement of customer needs entails ability for them to access the goods fast in the stores. Having Convenient means of payment by the customers either through cash or credit card. Less time used in the queues waiting to pay. Customers are always in a hurry and bring the need for businesses to cater to this need. Managers have an obligation to ensure those clients can locate and pay for their goods in the shortest time possible. The Oz supermarket has put this into consideration, and it will expect more customer as the purchasing system is automatic no queues or questions to the customers. The supermarket can also increase the client services to enhance their purchase through the following ways. Complaints from the customers must be handled with priority to avoid dissatisfaction. These can reduce the numbers of the customers if not taken into consideration. The company also can ensure that it stocks all the products and this will enable the customers to get everything they desire at the supermarket. The supermarket can also increase the platform to be used by the customers to pay for the product to either using mobile phones or advance payments. These will ensure that more people will be attracted to buy. Customers are always invited to free thing, the company, therefore, should offer discounts to the customers after purchase, and these will motivate them to buy more products. The customers can be provided after-sale services by the company such as transport services, installation, etc. these will make the customers have an easy way of knowing how to use the purchased products like televisions sets, fridges, etc.( Bodet, G. (2008, pp. 156-162). The company has done well in the areas of customer services by providing a fast platform for them to do shopping. Since the company is new in the market, this strategy ensures that it gets more customers because of their better services. The management should look for more means of making the customer happy. Satisfaction of the needs of the client is the goal for all the organizations. Feedback systems enable the company knows how it is performing and the changes that are necessary to ensure good performance in the market. The Oz supermarket should reply to the complaints or information they get from the customers. Feedback makes customers fee sense of belonging to the company and appreciated. Quality and quantity are the main aspects that the clients will look for the goods they get from businesses. The supply chain should offer the best quality products which have the ability to attract more customers. Prices of the items in the supermarket should also at fair prices not offered at extremely high prices as they may scare away potential customers. Oz supermarket has employed good strategy but should ensure the commodities it provides the customers satisfy their needs. The managers should research more on customers' needs to meet them. As a new firm in the market competition will be high and the risk of failure. The managers have the duty to put up risk management strategies which will enable it to survive in the market. The managers can engage in diversification and also open new branches in different segments. The marketing of the firm must be high to create awareness among the customers who may not be aware of its existence in the market. The supermarket management must always look for more improvements to ensure better services to the customers (Huang, W. H. (2008, pp. 521-536). References Bodet, G. (2008). Customer satisfaction and loyalty in service: Two concepts, four constructs, several relationships. Journal of retailing and consumer services, 15(3), 156-162. Huang, W. H. (2008). The impact of other-customer failure on service satisfaction. International Journal of Service Industry Management, 19(4), 521-536. Mintzberg, H. (2009). Managing. Berrett-Koehler Publishers. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40. Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194. Wilson, A., Zeithaml, V. A., Bitner, M. J., Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm. McGraw Hill.