The formation of business development strategies – innovative standpoint of value
Gaining and developing competitive advantage against segment competitors is one of the key issues reviewed by scientists and researchers across the globe. It is offered to implement “Low price”, “Concentration” and other strategies that could defeat segment rivals. To implement strategies, in order to gain competitive advantage, businesses invest a large number of resources, though the expected result is not always achieved. That’s why innovative approach towards value becomes so important. Authors of the book “Blue Ocean Strategy” W. Chan Kim and R. Mauborgne introduced and alternative, innovative way to create a new market value by eliminating the competition between rivals. The examples of world’s leading companies showed that innovative strategies might be formed and shaped in many different ways. The scientifical problem actuality depends on different interpretation of the value meaning and on shortly in scientifical literature discussed traditional business development strategies conversion to value based innovative methods. The research aim is to provide ways and methods of traditional business models transaction to value based innovative strategies. The research results are based on quality research method – structurised survey( conducted interview with the executives of manufactiring, good sales and services industry in Kaunas). Before the survey the scientifical literature analysis was carried out, logical camparison of business development strategies was made. To correctly interpret the research results systemic, graphical analysis methods were used. In this article one can find recommendations, how to rearrange traditional business development models into models based by innovative value approach. It is offered to use “Four changes” method and other measures in order to increase the value captured by customer (offer additional products and services, change communication methods).
JEL code – O10.
Article in: English
Published on-line: 2012-12-28
Keyword(s): competition; development economics; strategies; innovation; business
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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355
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