Concepts of Business Strategy

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Introduction

This article explains the concept of diffusion of innovation and how much it matters for businesses to communicate their products and services with the concept in mind. Essentially, customers appear to embrace and remain loyal to products and services that appeal to their beliefs. Therefore, businesses should communicate value to the customers on the basis of passion rather than on the basis of material.

Business Strategy

Anyone can copy a financial model, but a great business model is much difficult to imitate because it is a mental or emotional representation of how the business delivers value to the customers (Teece, 2010). In other words, a core aspect of the business strategy should be to communicate value to the customer in a way that sufficiently and clearly agrees with the customer’s conviction of value. Walmart, Amazon, and Apple are a few examples of businesses whose business models are entrenched in a value proposition that earns the companies sustained and profitable customer loyalty.

Analysis of Sinek’s and Porter’s Views

Competition in the business is all about winning the heart and loyalty of the consumers (Porter, 2008; Sinek, 2013). Porter and Sinek equally agree that customers behavior greatly influences the determination of whether to buy or not to buy. However, products and services that appeal to the imagination of customers are likely to be the winner (Sinek, 2013). But while Porter’s analyses focus on factors such as price and quality of products and how these factors are the major catalysts that drive customer behavior, Sinek suggests that communicating in a way that connects to the customer’s mental posture is the key driver for product success.

Amazon

Amazon tells the customers they are the king and that they deserve to be provided options within a wide range of timely and affordable products and services. Amazon meets those expectations by combining several technologies and processes to guarantee the best customer experience. These values are packaged in online sales and delivery services (Amazon), organic grocery sales (Whole Foods), quality news coverage and reportage (Washington Post), reliable cloud computing services (Amazon Web Services).

Amazon is a leader in the market in several industries thanks to its commitment to innovative ideas that are built upon the purpose of delivering value to customers. Priem et al (2008) in his explication on demand-side strategy explains that customers and investors and valuable business initiative attract each other.

Conclusion

Customers are largely attracted to products that meet their emotional demands. Once attracted, early adopters are certain to convince other non-early adopters to patronize the same products. Once early adopters and non-early adopters become loyal to the product or service, uninfluenced consumers reluctantly join the adopters club. This is the logic for attracting profitability through value creation and value communication as discussed in this article.

References

Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 78–93. Retrieved from http://search.ebscohost.com.library.capella.edu/login.aspx?direct=true&db=bth&AN=28000138&site=ehost-live&scope=site

Priem, R.L., Wenzel, M., & Koch, J. (2018). Demand-side strategy and business models: Putting value creation for consumers center stage. Long Range Planning, 51, 22-31.doi:10.1016/j.lrp.2017.07.007 (Capella URL: https://www-sciencedirect-com.library.capella.edu/science/article/pii/S0024630117303096 )

TED. (2013, September 29). Simon Sinek: Start with Why [Video file]. Retrieved from https://www.youtube.com/watch?v=sioZd3AxmnE

Teece, D.J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2010), 172-194. doi:10.1016/j.lrp.2009.07.003 (URL: https://www-sciencedirect-com.library.capella.edu/science/article/pii/S002463010900051X )

Competition in the business is all about winning the heart and loyalty of the consumers.