Mind Map
Discuss about the Innovation and New Technologies for Transport and Environment.
Innovation and new technologies are the vital part of an organisation to remain successful and make a good place in the market. The report contains the analysis of eBay and Amazon and their market place. EBay is an incumbent as they have been beaten by Amazon, due to the innovative and creative ideas that have been used by Amazon. The report comprises upon the solution provided to eBay to re-emerge in the market and occupy their place back (Bitner, Patr?cio, Fisk & Gustafsson, 2015). The solution provided was based on sustainable innovation which proved to be beneficial for the company. The effectiveness is measured upon various factors like customer’s reaction, financial statements and traffic analysis. Thus it can be stated that while challengers may beat the incumbents in the market there are various ways by which they can re-emerge in the market (Jones & Klofsten, 2016).
Mind map is an effective way to brain storm without worrying about the flow of information. It helps in visually the ideas and future analysis the idea in a better way. Mind map in this is used to depict how the solution came up and links the idea of challenges of eBay in a proper layout (Wong, 2017). A mind map helps in depicting clustered information into a more creative way that helps the brain to do the task in an appropriate way.
Based on the research of eBay and amazon, various strategies have been provided to beat the challengers in the market. Various solutions have been provided to the company to deal with the internal and external factors and achieve the sustainable growth. It was provided that eBay can enter the market by innovating new services (Chang, Chiu & Huang, 2018). It was recommended that eBay should increase the degree of decentralization as it will provide flexibility to customers. The solution for eBay to beat amazon was to expand the business in international market. These solutions will help eBay to compete with other companies in the market.
The solution provided in part B came up by performing deep analysis of both the companies. Environmental analysis tool were used to find the issues and helped in providing solutions regarding how incumbent beat challengers in the market should (Stokhof, Vries, Bastiaens & Martens, 2017). The challenger here is Amazon and incumbent is eBay.
Innovative and Technological Components Used by eBay
The analysis that came up with performing PESTEL analysis was that eBay suffered from political controversies due to poor quality of products. The exchange rates taxes and other revenue prospects were impacting the growth of eBay. The changing of lifestyle and demands of people has increased the business of eBay as they sell their products online. There were various legal trust issues that didn’t help the business to grow. The solution came up with SWOT analysis was that eBay should provide advance security. EBay can beat the challengers by turning out to be a retailer and improving the portfolio by increasing the products and services. Amazon has expanding the business by opening stores in various nations’ similar need to be adopted by eBay.
The solution gained from these strategies helped in understanding the competitive market of the eBay and how amazon took the place of eBay. Mind map helped in depicting the challenges faced by eBay to compete in the market (Aydalot & Keeble, 2018). EBay can facilitate better by evaluating these strategies and can help it to re-emerge in the new market. The research helped me to know that the implementation process of eBay is based on development and developing applications with innovative strategies.
Ebay is considered as an incumbent and Amazon is the challenger as it focused on the demand in the market. Ebay was overtaken by Amazon as it offered similar duties in a better way. Amazon used the innovative strategies to capture the audience. eBay lacked in the market as they kept on selling the old products and the sale methodology was based on auction system. eBay was overtaken by Amazon as they used to charge fee. eBay faced the issue as the planning methodology was not proper (Chen, Xiao & Lin,2018). Sellers started to showcases their services and products using Amazon as it has better job policies. Ebay also lacked in the market due to trust issues as they were found in selling fake goods which affected the traffic of the site. The customer experience offered by eBay was not u to the mark. The challengers occupied the market as they offered best quality service at lower price.
Innovation and technological components were designed to amplify the platform of eBay. Various workshops and presentations were planned to focus on the quality of products as well as security. They started working on the artificial intelligence which made the company to serve better results. Innovation use of new technologies helped in broadens the horizon of the company. Innovation in eBay has helped them to meet the customers’ expectations by increasing the shopping experience (Tobing & Hamid, 2015). eBay have started use of new technology called as connected glass that helped in offering the digital storefront experience to customers. It also offered the online payment actions by PayPal which helped the customers to have a flexible approach. eBay experiences have helped them in innovating new culture that provided better opportunities to entrepreneurs to grow globally. It was suggested that eBay should make use of their experiences to improve their interface. eBay used the concept of decentralization that helped them to re-emerge in the local market. eBay innovative new technologies by expanding the business in international market that helped in improving the economic scale. The increased profit margin will be beneficial for future growth. The innovation components have helped eBay to gain the market place and development of effective business model is the key to success. Localization of the business have helped in gaining reputation of the brand. Ebay has developed the approaches using few techniques of implementation and marketing. Ebay focused on analysis of requirements in the market and then generating the idea faced on the demand from customers (Noesgaard & Ørngreen, 2015). These ideas were properly implemented to capture audience from the market. Implementation process of ebay is also refined as it focuses on development and then testing each component so that it avoid the chances of errors penetrating in the system which may lead to some trust issues. The innovation strategies focused on the objective to reduce the prices and increase the profit margins. These innovations in technological development helped in integrating the edges to obtain better economic benefits. The solutions provided to expand the business in other nations will ne beneficial as it will help the profit margin to increase. Other than the solution also suggested that special offers should be designed to capture more audience. Development of digital technologies helped eBay to face the challengers and know their strategies used to capture more audience (Ruban, 2016). To overcome the challenger’s eBay stared designing products and services in a manner to gain the position in the market, this was made possible by balancing the price and maintain attractive website. These innovative strategies and development in technologies helped the business to grow globally. It helped eBay to increase their sale which in turn increases the e-commerce platform.
Sustaining Innovation
The solution provided to compete with the challengers is a sustaining innovation. Sustainable innovation is a process that is covers the entire area of innovation from incremental to radical. The solution provided for eBay to re-emerge in the market help them to re-design their marketing strategy as well as re-design their products so that it becomes feasible (Licitra, Teti, Cerchiai & Bianco, 2017). New products and services designed helped ebay to satisfy the needs of customers. This helped in achieving sustainable innovation as it offered higher user experience with higher profit rates. Ebay is now functioning in various regions that helped them in capturing the market globally. It was suggested in the solution that eBay should design new products rather than selling the old products. It helped in crushing the competitors in the market. Sustainable innovation has various components that need to be taken acre. It involves sentiment monitoring that helped in collecting the data of the challengers. This allowed ebay to monitor the feedback received from market and then design their advertisement and branding campaigns accordingly (Zuckerman & Gal, 2014). This was a very powerful tool for eBay as it allowed them to provide a broad view of how the market is reacting to the brand. Innovation will be effective if the challengers are monitored in an effective way. Sustainable innovation offered various benefits as it allowed the team to engaging themselves in providing better services. Implementing all the solution was beneficial for the company as it provided sustaining innovation and created a proper way for customers to provide proper feedback. The solution for eBay to beat amazon was to improve the existing market with better values rather than creating an entire new market. This helped eBay to compete against sustaining improvements of other companies. Sustainable innovation technique helped in targeting high end customers by offering them better performance than what was available previously (Rayna & Striukova, 2016).
The solution is sustaining in today market as it focused on expanding the sale to global market, maintaining the security over the online channels and testing that the quality of products being delivered is maintained. The solution has helped in sustaining the market as they designed the products according to the needs of consumers and delivering the products with lower price (Lacy & Rutqvist, 2015). This help in providing proper completion to the challengers in the market place by offering better services.
There are various ways to measure the effectiveness of the eBay after the various solutions provided to beat the challengers and re-emerge in the market.
- Reaction- This helps in knowing how the audience have reacted to the change. The use of surveys or positive feedback helps in leaning about the experience and the outcome of the changes. Analysing the behaviour of customers will help in understanding the impact of changes in better way (Teece, 2018). If the traffic increases of the site again it can be concluded that the solution had positive effect on the business.
- Measuring the financial statements- Success of business is directly measured by the profit margins. If there is an increment in income statement, balance sheet as well a cash flow system then it can be concluded that business is gaining profit (Norman & Verganti, 2014). These statements help in checking the profit of the company.
- Customer Satisfaction- Ifthe customers are satisfied with the products and services delivered in the market. It can be treated as a success point for the business as customers experience is the key component. Feedback given by customers helps the service provider to analyse their service as customers help them to improve the experience. If the customers are satisfied with the services then they will hose ebay over other challengers (Norman & Verganti, 2014). This would help them to re-emerge in the market.
- Getting New Customers- if the number of customers has increased it can be easily figured that business is attaining success.
- Competitive Stance- To measure the success of a business it is necessary to compare the business with other challengers as it helps in analysing the success in a better way. The services offered by the competitors and their price is compare with ebay, this would help in knowing the market place of the business (Comberg & Velamuri, 2017). If the change in market place is observed that it can be concluded that business has achieved success.
- Leads Acquired- Analysing the leads of the system helps in analysing the growth. If innovation and high technology had positive impact on the business it can be concluded that business have achieved success.
- Customer Conversion-Analysing the customer ratio can help in knowing the success rate of business (Rayna & Striukova, 2016). If the number of customers has increased due to new innovative ideas that it can easily be figured out that how the business is achieving success in the target market.
- Social Media Success- Last but not the least, the success of business in social media directly relates its growth (Tukker, Charter, Vezzoli, Stø & Andersen, 2017). If the business is accepted by customers at personal level it will reflect on the social media. As most of the audience are connected to social media sites.
- Analysing the traffic- The traffic of the website has been tracked. If the traffic has increased after innovation of new ideas and new technology it can be concluded that business has helped in achieved success (Smink, Hekkert & Negro, 2015).
There are potential difficulties that might occur while establishing the business. Some of the challenges addressed by business are:
- Uncertainty- It is true that there is no surety that business will achieve success as economic climate keeps on changing. The demands of customers changes which need to be adapted by the business to make sure that it functions properly.
- Financial management- It is difficult for an incumbent to offer services at low cost. On the other side it is necessary to reduce the cost of products to gain good profit margins. Reducing the cost of products may lead to lower cash flow in the business.
- Monitoring the performance- it is difficult to monitor the feedback and performance of the business on regular basis (Smith, Kern, Raven & Verhees, 2014). As the performance of a business is dependent on many factors.
- Technology- The technologies on which business works changes day by day. Thus innovating new ideas by making use of current technology is difficult. As they need to analyze the business on the basis of technology.
- Legal problems- Business face various legal issues that include laws related to securing customer information and worrying about various operations indulged by government (Jorna, 2017). As businesses grow with time governmental compliance appears to occupy a greater share of their leaders’ time.
- Support system- The support system of business need to be strong enough to manage all the operations and avoid the chances of conflicts. Support system need to check that business is not facing any copyright issues and on one is using the data in an unauthorized way.
- Lack of Knowledge- It is the common challenge faced by the businesses as the incumbents need to have ample knowledge about the techniques used by challengers and how they have captured the audience (Jorna, 2017). To make sure that incumbent beat the challengers in the market a proper research should be done so that they can adopt those strategies.
- Lack of Direction and Planning- This is a major problem that is faced by a business as they do not have a detailed business plan designed. Improper business plan can lead to failures as designing an effective business plan helps in focusing on the goals and objective of the business (Lopez, Gomez & Naranjo, 2015). Proper planning helps in determining the financial situation of the business and helps the incumbents to beat the competitors.
- Innovation- Incumbents due not innovate new ideas they keep on working on the old services and products. Like considering the case of eBay they kept on selling the same product by modifying them. Wherein Amazon discovers new offers for customers which helped them in getting more clients.
Thus there are various challengers that are faced by incumbents to beat the challengers. To overcome from all these innovation is the key to success for very new business. Innovating new ideas and offering better benefits to customers helps them in increasing their growth.
In this report the focus has been laid on how success of a business is maintained and how challengers beat the incumbents in the market. In this scenario, we considered the case of eBay and Amazon where Amazon is a challenger and eBay is an incumbent. The challenger often beats the incumbent who are holding a good place in the market. Challengers replace the place of incumbents as they offer better options to the incumbents. In this report we have discussed various solutions that would help incumbent to cope up with the failure and re-emerge in the market.
Conclusion
It can be concluded that incumbents are often beaten by challengers in the market. In case of e-commerce movement eBay was beaten by Amazon. It has gained momentum in the market as they offer customers with more benefits and high flexibility. eBay overtaken by Amazon as they stand out in the market by offering the good directly to the clients rather than delivering to third party. EBay somewhere lacked in the market due to the trust issues that have affected the sale of the products. If compared to amazon they offer better buying experience to the customers. Thus these shortcomings are the major reason why incumbents are beaten by the challengers. In this mind map has been designed that help in visualizing the situation in a better way. In this the challenges of ebay has been discussed that have been analyzed by using various analysis approach. Other than that various innovative techniques and technology that have been used by eBay to overcome the challengers have been discussed. Along with that the challenges that hit the business growth have been analyzed. The approach and techniques that were provided in the previous solution turned out to be sustainable. It suggested that eBay should modify the approaches that are used for marketing and manufacturing the products, rather than starting from a new point. The effectiveness of business was measured considering various factors.
References
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