Competitive Strategy Business and Sustainability

Question: Discuss about the Competitive Strategy for Business and Sustainability. Answer: Intreoduction: Strategy is the smart allocation of limited resources by a distinctive system of activities so that customer-serving processes in competition are outperformed. The word strategy comes from Greek word strat?gos that is actually extracted from two words: stratus (military) and ago (old Greek word for leading) (Grant and Jordan 2015). Strategy is another form of a leadership plan. The base of a good strategy is properly diagnosing challenges, developing guiding policies and creating rational policies and actions. At the same time, strategy is the course charted for the imagined journey and the course steered for the trip actually made. It is a general system, which gives direction to moves to be made and, in the meantime, is molded by the moves made. This implies the essential precondition for defining strategy is an unmistakable and far-reaching comprehension of the closures to be received. Without these closures in view, activity is tactical and can rapidly deteriorate into just a thr ashing about (Meyer and Staggenborg 2012). Making a business strategy is a center management function. It must be said that having a decent strategy and executing the strategy well, does not ensure achievement. Associations can confront unanticipated conditions and unfriendly conditions through no blame of their own (Aras and Crowther 2012). Pharmaceutical industry all over the world is known to be investing hugely in RD and innovation. The industry has even seen the results patent-protected, high margin revenue streams and lucrative businesses all over. However, with the fast moving world the pharmaceutical industry also felt the need to alter its strategies to match up with the competition. The changes place high demands on customers, suppliers and manufacturers (New Opportunities Strategies in the Pharmaceutical Industry 2012). Taking GlaxoSmithKline (GSK) as an example, it can be observed that they have attempted to increase their market share and profitability by adopting latest innovative strategies in the market. However, they are in need of further improving their profitability and revenue margins. The latest strategies in the pharmaceutical market include the blockbuster model strategy that says that a couple of major drugs manufacturing are sufficient to take on preliminary investment for a large amount of ma nufactured drugs. However, the appropriate strategy for GSK and pharmaceutical industry in general would be to develop a competent strategic vision and standard, along with concentration on fluctuating customer preferences and behavior. New technologies are most definitely needed for advancement, but that should be planned properly before implementing. GSK and the other pharmaceutical companies must keep in mind that their approach should be multidimensional and identify the target customers for better market access. The focus ought to be on high value customer segment for the pharmaceutical products, as they would provide the companies with the proper growth, empowerment and profitability for future investments. One very important thing to keep in mind is that the products and strategy must be patient-centric (). What is Business Model Innovation? Business model innovations (BMI) have reshaped whole enterprises and redistributed billions of dollars of value. Business model innovation is about essentially reconsidering the business around an unmistakablehowever not generally self-evidentclient requirement, then realigning the assets, procedures and benefit equation with this new value proposition. It is difficult and can remove decision makers from their customary ranges of familiarity. Nevertheless, the outcomes can be exceptional (Matzler et al. 2013). Business model innovation is presumably the most difficult of the innovation sorts, as it will probably give association real necessities for change. Frequently, the very abilities or procedures that have been streamlined to make an organization effective and gainful will turn into the objectives for change. Dissimilar to different sorts of innovation, changes to the business model oblige changes to the foundational choices whereupon the business works. Nevertheless, business m odel innovation will probably be radical, and much of the time, transformational (Massa and Tucci 2013). Changing a business model can look extremely alluring because of the various cases referred to in business books and writing. Noteworthy victories are ascribed to business model innovation, and everybody needs to copy that achievement. While business model changes appear to be engaging, this kind of innovation challenges the foundational choices basic to the present business, disturbing the very structure that is as of now paying the bills. This recommends finding the correct time for a business model change is principal to achievement. The organization's brand speaks to guarantees conveyed in its value propositions. There is a time when proposed business model changes can expel the establishment that supports the brand, and maybe more essentially, the business personality. At the point when this happens, business model innovation may recommend rebuilding of the organization. At last, the business model outline must be adjusted to the business character for any probability of an effective innovation result (Amit and Zott 2012). In Australia, family farms are the foundation of the broad acre agriculture area. Be that as it may, the gainfulness and specialized proficiency crevice between top performing farms and the normal ranch is growing, to a great extent because of administration and capital requirements that are restricting selection of existing advances. The greater part of driving farms are claimed and worked by family bodies; in any case, corporate farms and different agribusiness organizations are progressively showing up at the front line of innovation selection. For example, Corporate Farming Australia (Glencore Grains Australia) follows the contract farming business model of leasing and owning dry land and irrigated croplands all across Australia. This form of model requires varying levels of input capital and decision-making, which becomes difficult for organizations to provide at all times (Wang, Wang and Delgado 2014). Glencore Grains has been facing the same issue, with incidents of absent la ndowners and insufficient capital. In such cases, a hybrid business model would be extremely beneficial for the association. It would involve a joint-venture arrangement, where Glencore can lease their lands to a new company and jointly manage the lands under a single board of management. This model would also help enhancing the forms of capital for Glencore, by optimizing scale efficiencies and facilitating the process of labor specialization. This model can be seen extensively used in the Mallee region of South Australia. For companies to increase productivity and benefits they must continue to bring in new approaches in their business models. References Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Aras, G. and Crowther, D. eds., 2012.Business Strategy and Sustainability(Vol. 3). Emerald Group Publishing. Grant, R.M. and Jordan, J.J., 2015.Foundations of strategy. John Wiley Sons. Massa, L. and Tucci, C.L., 2013. Business model innovation.The Oxford Handbook of Innovafion Management, pp.420-441. Matzler, K., Bailom, F., Friedrich von den Eichen, S. and Kohler, T., 2013. Business model innovation: coffee triumphs for Nespresso.Journal of Business Strategy,34(2), pp.30-37 Meyer, D.S. and Staggenborg, S., 2012. Thinking about strategy.Strategies for social change,37, p.1. New Opportunities Strategies in the Pharmaceutical Industry. 2012. 38th ed. [ebook] Europe: Management Centre Europe, pp.1-52. Available at: https://cdn.mce.eu/eu/uploads/2016/05/Pharma-Industry-Executive-Issue-38-2012.pdf [Accessed 15 Dec. 2016]. Wang, H.H., Wang, Y. and Delgado, M.S., 2014. The transition to modern agriculture: contract farming in developing economies.American Journal of Agricultural Economics,96(5), pp.1257-1271.