Potential of Future Success of Smart Wallet Product - Case Study Example

Patterns of Innovation In growth strategy, the company substantially widens the scope of one or more of its business in terms of their respective customer groups, customer functions and alternative technologies to improve the overall performance. A market penetration strategy is considered for the smart wallet product. In this strategy, the company seeks to expand sales of the smart wallet product. Its objective is to increase the sales and market share for the product. Aggressive pricing is a very common tactic to the market penetration strategy. It involves lowering the price of the smart wallet than that of the competing products. The innovation or product life cycle diagram below describes this strategy. Fig1: Innovation life cycle of smart wallet The above innovation life cycle model shows market adoption of the smart wallet. At the beginning of the s-curve, the smart wallet product is introduced into the new market, and there are early adopters who are interested in testing the new product. At this stage there typically small or no market leading to low sales. The company invests more in market research and product promotion to achieve a demand that leads to the success of the smart wallet. There is limited competition in the market making it an advantage to the company. Since it is a new product being launched, the company sets a high price that will finally become the average market price. The growth stage of the smart wallet follows, and the company establishes product's position in the market. The demand increases and due to price penetration, a mass market adoption is acquired and leads to increase in sales. This is also due to improved technology in production, reduced cost of production cost and distribution of standardized smart wallet. As the demand increases, the competition also increases as new companies find to benefit from new and developing market. At this stage, a more sophisticated market approach is used since the product is already established and is no longer new in the market. However, the company increases profits at this stage due to lower costs and increase sales. From this point, market matures, and this is when the late adopters who were opposing to "risk" starts buying the tried and solutions. Profits start to decrease at this maturity stage since they are shared among many competitors. The production continues to reduce as the new s-curve are breakthrough innovations of the smart wallet driven by the company producing high product volume. At decline stage, the market of the smart wallet declines. Consumers will stop purchasing the product in favor of other new and cheaper products. The company can prevent this by advancing in technology and producing smart wallets with new features. This is represented by new s-curve in the innovation life cycle diagram above. Kaplan (2012) shows that strategy targets either differentiation or cost leadership. The product is based on differentiation since the industry targets customers in all segments based on attributes other than the price i.e. high product quality. The company is trying to distinguish itself along these scopes positive relation to its competition. It finds how to minimize costs in parts that do not distinguish it, to remain cost competitive. Clusters The linkages needed in the establishment of the smart wallet involves education, supply, production, and market. Education provides the knowledge in ICT which relevant in coming up with new design and features of the smart wallet. The knowledge acquired is used in production process. The produced smart wallet is supplied and distributed in the market. The business innovation at first is established in the local region and venture on local markets. As it expands and growth, it is established globally. Innovation governance model describes how the management of a firm or industry chooses to allocate responsibilities in innovation. The high-level, cross-function innovation steering group is a model required. It involves the appointment of several managers chosen from various functions and across different hierarchy level to steer innovation as a group. The governance model or dimension refers to the knowledge infrastructure and public policies that support the company innovation, Ramella F. (2016). The governance model required for the smart wallet innovation is s the Network system. In this model, institutional infrastructure involves the several level of government i.e. local, regional and national and the innovation funding comes from an agreement of all essential actors (banks and financial institution and government). Cluster refers to a concentration of connected organization and institutions relating to a particular production sector. It also includes business and organizations or companies in industries complementing to a particular sector of specialization that are importance for competitions, Porter (1998). The cluster knowledge relevant here is the regionalized national innovation system where the sectorial clusters and innovation are functionally incorporated at a national and international level. This enables innovation to prevalently realize via cooperation with actors outside the region. The knowledge relevant for innovation originates from outside the regional system and naturally scientific, Asheim and Isaksen (2002). Innovation and Competitiveness Government infrastructure refers to the long-lived and costly capital assets with complex design architecture required for economic and development for both public and private sectors. Transport infrastructure including roads, railways, airports, ports, etc. facilitates distribution of the product to the market. ICT infrastructure also helps innovation technology in the production of the smart wallet product. The produced product will be exported to international markets. A business plan is developed that helps understand the legal requirements for getting the smart wallet product into a new market. It also helps identify the costs associated with exporting and develop a new strategy for this new endeavor. Researching the target market and then build an export marketing plan. After this, the best methods of delivering the product to the target market is developed. Developing a sound plan and understand the legal aspects of international trade. Government fosters student engagement with science, technology, engineering and mathematics (STEM) by providing the some incentives policies. For instance, it assist to develop and instrument "mathematics by inquiry" programs for primary and secondary schools that will be similar to other innovative online curriculum resources. Assist to develop and implement the "coding in all curriculum" program to facilitate computer programming knowledge and skills across the curriculum. Furthermore, it provides seed funding to boost innovation-focused"P-TECH" and increase students participation in "STEM students“especially for girls, disadvantaged and including those living in remote and regional areas. The government also increases and sustain public and engagement with STEM. It also ensures teachers get full support, resources, and training. HASS Requirements for the Innovation are leadership, people, and knowledge. In leadership program, leaders in the industry have various responsibilities that lead to the success of the production and marketing of the product. For instance, they distribute powers within the company, focus on customer satisfaction and staff gratification and create a conducive environment to new market creation. People play a big role in the implementation of the product. They provide workforce in the production of the smart wallet. It is essential to align the right leadership and people to the maturity level of the corresponding industrial unit. Knowledge is another requirement in the innovation. Future of the Product The smart wallet product has the potential of future success due to intense market research, sustainability of the product and plastic materials. Market adoption and use of the product will bring to its success. Any emerging and effective technology coming along the way in the production process will also lead to a future success of the product. The company also hopes to expand to larger audiences because of its straightforward purpose. We hope that the product will widely be accepted. Aim to develop and make it better and better, and ultimately the target is for anybody to be able to use it firmly anywhere in the world. Reference Farris, P. (2010). Marketing metrics: The definitive guide to measuring marketing performance. Upper Saddle River, NJ: FT Press. Kaplan, S. (2012). Leapfrogging: Harness the power of surprise for business breakthroughs. San Francisco: Berrett-Koehler Publishers. Ramella F. (2016). Sociology of economic innovation. Porter, M. E. (1998). On competition. Boston, MA: Harvard Business School Pub. Asheim, B. T., & Isaksen, A. (2002). Regional innovation systems: The integration of local sticky and global ubiquitous knowledge. Dordrecht: Kluwer Academic Read More