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Market structure: business economics
Market structure: business economics
Market Segmentation and Differences between Traditional Approaches and Contemporary Approaches
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Furseth, Cuthberson, and Reynolds (n.d.) define service innovation as an activity where known products, services or process are combined or created in a new way, to generate a positive net present value from a market. The innovation is to combine known solutions, or create new service, processes, or business models, and either sell these on a market or employ them for internal increased value. In the end, the purpose of service innovation is to give customers a better experience or higher value for the specific service. Through the article “Creating New Markets through Service Innovation”, Berry, Shankar, Parish, Cadwallader, and Dotzel presented some key issues to the readers and why it is important for the study of marketing strategy. …show more content…
As a result, the importance of service outgrew the importance of goods, which is why companies should be constantly seeking for ways to provide better services. However, most businesses only make incremental improvements to their existing service activities. Even though these improvements are important to keep the businesses going, the rate of returns is only limited to their existing services. Only a small percentage of businesses innovate a service that creates new market demands or reshapes the existing market which the company could reap big benefits from the new innovation. Service innovation promises greater long-term potential benefits than imitative or incrementally improved service offerings. Google did not invent the core benefit of providing information, but its market-creating service innovation is the availability of relevant and rapid Web searches for information on almost any subject (Berry et.al., 2006). As a result of its important innovation, Google leads the search engine market in the world and it is still hard for competitors to outgrow …show more content…
Leadership role is also important during this phase. Dr. Martinette mentioned on his class lecture that giving services to everyone is impossible; therefore it is acceptable to pick a market niche and put the best efforts to serve those customers. By thinking about a service in terms of its core benefits and the separability of its use from its production, managers can easily determine how to out innovate their competitors. Creating long lasting relationship with customers and sustain the company for years to come are the essential things that businesses need to focus on.
Works Cited
Berry, L.L., Shankar, V., Parish, J.T., Cadwallader, S., Dotzel, T., (2006). Creating new markets through service innovation. MIT Sloan Management Review, 47(2), 56-63.
Cravens, D.W., Piercy, N.F. (2009). Strategic Marketing. New York, NY: McGraw-Hill.
Furseth, P.I., Cuthberston, R., Reynolds, J., (n.d.). The value dynamics of service innovation. Retrieved from www.reser.net/file/94574/
Sager, I., Burrows, P., Reinhardt, A., (2008, May 25). Back to the future at apple. Bloomberg Businessweek. Retrieved from
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Tidd, J., & Bessant, J. (2011). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
As our text explains, "The action of competitors exerts pressure to put more money now into marketing, research, and product development" (Drafke, 2009. p. 143) it is truly a never ending competition. Therefore, there are many aspects that affect the resources a business has to work with from prices of product, operating costs, payroll, and many more. The business world uses all its resources to stay on top of the competition. . That is why any business must stay on the forefront of technology, as this is a huge asset in the world today for any business. It must use technology help in managing time, cost containment, and product in order to compete in this world of overabundance
Linzmayer, O. (2017). 30 pivotal moments in Apple's history. Macworld. Retrieved 8 July 2017, from http://www.macworld.com/article/1050112/macs/30moments.html
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
In the late 1990s, with the release of Windows, Apple was placed on the right track. Apple released its’ 20th Anniversary Macintosh in 1997 which marked the beginning of Apple’s return (Crofford, 2011). The next year, Apple released the IMac, which was a highly received by the public. Apple reported over $80 billion in cash on its’ last Form 10-K filing with the Securities and Exchange Commission (Emerson, 2011). Today Apple produces several different products including IPhone...
2: Finkle, Todd A., and Michael L. Mallin. "Steve Jobs and Apple, Inc." Journal of the International Academy for Case Studies 16.8 (2010): 49+. General OneFile. Web. 19 Oct. 2011.
Marketing is a core pillar of an organization and contribute significantly in its prosperity through attaining the laid down targets as well as scope of development. The position of an organization is hugely based on its competitiveness and capacity to capture a significant portion of the market in relation to the prevailing needs of consumers. Interaction of the organization with the consumers and the potential consumer in the market arena is attained through the marketing wing of the organization (Ferrell& Hartline, 2012). The preferences of the consumer and avenues of satisfaction are aligned to the established marketing frameworks. However, the success of organization marketing is highly inclined to the marketing strategies formulated and adapted towards coping with competition and eventually enhancing firm competitiveness.
O'Grady, J.D. (2008). Recent Titles in Corporations That Changed the World. In Apple Inc... Santa Barbara, CA: Greenwood. Retrieved from http://ebooks.abc-clio.com/reader.aspx?isbn=9780313362453&id=GR6244-4
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
In every business offered by any organizations, it is very important to ensure that the customers will always satisfied with services provided. People nowadays are looking for the new technologies, new markets, new ideas and also new inventions. Thus the organization must always keep up with the current changes in demand to ensure that their services are still relevant to the customers. The changes of demand also called as an evolution and to achieve these, the organizations are advised to have a process that we called as “Business Transformation” (“Business Transformation: The Importance of Change,” 2014).
According to Senge (2006), service innovation includes services, technology, and new organizational models, different form of leadership, new procedures and business models. IKEA used service innovation and its processes to increase its sales, operation, which promote a steady growth. However, IKEA innovative services not only create new and better service for consumers who needs a good impression, but also focus on how to allocate available resources in particular ways for consumers to use in order to co-create value with seller. The clients as resource integrators focus on service and logic which is the foundation of service innovation to co-create value (Carnegie, 1998). Given these factors, IKEA implemented
KOHLI, N. & KAUR, J. 2011. SERVICES MARKETING - WINNING AND CREATING CUSTOMERS WITH SPECIAL REFERENCE TO ICICI BANK. Asia Pacific Journal of Research in Business Management, 2.
(1) efforts to improve the quality of their services, and (2) efforts to market themselves more effectively. Both service quality and services marketing have received considerable attention from researchers over the years and the application of these concepts in the service settings is therefore not surprising (Parasuraman et al., 1985; Rust and Oliver 1994; Zeithaml et al., 1990). One evidence of the importance of service quality and service