The Kumar System - Case of Aditya Birla Group - Essay Example

Therefore, his model is based on balancing the cash cows against the value creators (Layak 1). There are numerous methods that can be employed to sustain the competitive advantage in corporations. The changing dynamics in the business world have significantly enhanced the concept of sustainable competitive advantage. Research also asserts that the success of a market is mainly defined by the radical innovation of the company. The radical innovation entails a unique business system and value proposition.  

Traditionally, most companies in the business world employed reactive strategies, which aimed at countering competition from other companies. Recently, in the global scene, most companies have a diverse nature aimed at revolutionizing the company. A clear example can be drawn from Aditya Birla Group that incorporates marketing research, which leads to investigating customer needs so as to develop differentiated products and services (Layak 1).

Aditya Birla Group also uses a marketing drive that is presented by changing the existing market by making radical business innovations, which lead to the creation of new markets (Layak 1). The diverse nature of the company was attributed to the measures that were employed to integrate various businesses. Kumar employed a business strategy that was aimed at integrating the business.

            The business structure employed by Kumar can be used and managed effectively to be in line with international and local expansion. Kumar claims that talent management is vital in maintaining the success of the company (Layak 1). In fact, as a businessman, he is entirely involved in the fine-tuning of the business model. According to him, business owners are supposed to be involved in the active management of their businesses to enhance local and international expansion. This also involves running a business firm using an exemplary business model.

            In conclusion, businesses are formulated in three main strategies including corporate level, business unit level, and functional level (Layak 1). The corporate level strategy is mainly concerned with the selection of businesses whereby the company competes while coordinating the business portfolio. Therefore, the company can maximize its achievement to take a leap from a family business to a Fortune 500 company. Reach defines the main issues affecting the business hence, managing and integrating the business.