Corporate Entrepreneurship and Innovation Challenges
In this world of rapid expansion, globalization and development, organisations are seemed to be applying sophisticated strategies in order to attain the better market advantages. Strategic management, considering from a critical viewpoint, is a continuous process of planning, monitoring, analyzing and assessment of different organisational activities in order to meet the basic objectives and goals. Applicational of the effective strategical policies by any entrepreneurial venture essentially helps the organisation to stay aloof from the possible critical challenges in the market (Burgers & Covin, 2015). Eventually, it is such a process that particularly helps in critical development of an organisation in a particular marketplace. The basic objective of this particular essay is to identify the corporate entrepreneurial and innovation challenges along with identification of critical risk factors, in particular reference to that of Atlassian. The essay argues that effective entrepreneurship ventures essentially guides an organisation to attain the better advantages of the market place and it seems to be also helpful in the perpetual development of the organisation as a whole. For this very reason the essay first develops the background of the study followed by the critical evaluation of the different entrepreneurial aspects, addressing the challenges and risks followed by summarizing the issues at conclusion point at the end of the study.
Corporate Entrepreneurship, as highlighted by Behrens & Patzelt (2015), is considered to be the process particularly applied in order to manage a specific business, service, products, or process within a present organization to develop value and grow revenue by the application of entrepreneurial action and thought. Corporate entrepreneurship eventually is considered to be the most important tool that lead to innovation and growth. Bau & Wagner (2015) have pointed out that it offers a system from the viewpoint of processes, resources and environment that specifically supports, engages and motivates an organization in order to attain entrepreneurial actions and thinking. Organizations with strong entrepreneurial orientations seem to perform comparatively better than an organisation with stagnant thoughts and propositions. This factor eventually helps an organisation to attain higher levels of innovation, productivity, financial returns and growth that helps in sustaining in the market and enjoy better competitive values (Hind & Steyn, 2015). However, the researchers like Pinkse & Groot (2013) have mentioned that though business growth seems to be the main destination to achieve, corporate entrepreneurship in some point appears so daring in nature that it may look to be difficult to attain. Significantly, corporate strategies challenge the conventional organizational practices. According to Behrens & Patzelt (2015), many a thing indeed factual to support a marketer or a business in corporate entrepreneurial approach, it seems to be completely opposite to that of what is needed to build for a particular new business.
Atlassian: A Case Study
Atlassian, one of the prominent software developing entrepreneurial ventures, seems to have progressed more avenues in comparison to that of the other frontrunners in Australia. The organisation has developed the capability to attend nearly 5 million users in monthly basis. Significantly, innovative approaches, critical entrepreneurial strategies and policies, fundamental management strategies help in better management of the business aspects. The success of the organisation can be determined from this aspect that where it generated the revenue of AUD 1 million in 2002, earned AUD 14.9 million in 2005-2006 financial while in 2015 the organisation acquired nearly AUD 319.5 million (Hanson, Hitt, Ireland & Hoskisson, 2017). Naturally, the organisation seems to have effectively applied the strategical approaches in order to emerge out successful in nature. Significantly, the organisation has potentially grown and developed its perimeter in the competitive software development market.
In order to take about the possible corporate entrepreneurship challenges that Atlassian may have to face one must mention that the technology world is rapidly reshaping. According to the demand of the market organisations are being required to supply the products in order to attain the competitive benefits. Most of the largest firms in order to attain better prominence and advantages are eventually concentrating more on active innovative development process which in majority of the cases is not possible for a small entrepreneurial venture. Atlassian in this context would have to face serious challenges from the potential big forces. A study of Eric-Nielsen (2015) shows that the basic demand of the customers is to attain the best quality products in comparatively low price. In order to meet that challenge the organisations are concentrating more on strategical and diploma tic development process. Kassa & Raju (2015) have observed that emergence of a large number of new entrepreneurial ventures, the market is becoming more competitive in nature since the new organisations are trying to offer effective quality products in comparatively low price in order to attain the bigger market value. Considering this aspect as a serious challenge, Atlassian is eventually required to act quite potentially and manage the market and sales related challenges effectively. Finding new revenue streams although may seem to be quite easier for the larger organisation, may pose a serious challenge for the smaller organisations. The main reason behind it is the brand value of a large organisation which can hardly be challenged. This situation can pose a serious hurdle for Atlassian in future when it may have to look for a bigger market.
Corporate Entrepreneurship Challenges for Atlassian
Away from all these potential challenges, Atlassian do have some serious points of opportunities as well. The widening market with essential varieties at the door seems to be the biggest advantage that Atlassian can cherish in the coming days. Although the market is said to be shrinking rapidly, the possible perimeters may help in better attainment of the challenges. Among the other opportunities for Atlassian, one must mention the developing brand value of the organisation that would help in developing and attaining better advantages (Pinkse & Groot, 2013). Since Atlassian has been in the market for the past few years, it has already developed its brand value and marketplace which can eventually help in managing better organisational growth. The increasing sales and marketing percentage of the organisation is effectively showing the possible opportunities lying for the organisation in future. Atlassian has been seen concentrating more on word on mouth marketing and already developed a significant level of organisational potentiality and brand value that would help in managing and circumnavigating the challenges.
In order to highlight the potential risks that inhibiting the development process of Atlassian, one must mention teething competition and rapid changing of the customers’ demand. Since Atlassian has been running its business only in Australia, it is becoming really competitive in nature. Emergence of the new entrepreneurial ventures, bulk investments from the larger organisations in order to attain the competitive advantages seem to be the biggest challenges that Atlassian may have to face. The organisation seems to have some significantly potential competitors in the market who pose challenge in order to manage the customers and develop the market place (Samborski, 2015). It is expected if the competitors are not effectively managed and monitored by the organisation this challenge can become serious in nature in the coming days. It is recommended that Atlassian should expand its market perimeter in the international market so that it can enjoy better market advantages.
Changing customer demand is going to be literally a challenging issue for Atlassian for future. It is stated that the demand of technology would significantly increase in the fields like cloud computing, data security, data analytics, digital content and XaaS. Atlassian is required to satisfy its customers by providing the effective services in these fields in order to attain better competitive advantages in the market place. Atlassian although provides all of these services, however, the organisation is not much capable to provide the effective service in these fields. Hiring of the best employees, introduction of the required technologies, investment in the operational approaches would essentially help the organisation to provide the best services in these particular services in the coming days (Yilmaz & O’Connor, 2015). However, several other organisations are also investing in this field in order to attain better advantages. Atlassian is required to apply more sophisticated approaches to hold better benefits.
All through the essay, the main idea of the essayist has been limited within ascertaining and analyzing the entrepreneurial aspects in order to delineate the contribution of these ventures and the possible challenges that a venture had to face, in particular reference to that of Atlassian. In context to the analysis it has been found that the market across the globe is becoming literally competitive in nature which often poses to be challenging for the organisations to develop its market. However, it is the sheer brand value, developed strategies and proper management of the resources that help in netter management of the challenges and consider development process. It has also been found that Atlassian would have to face serious obstacles, and if it fails to manage them, the organisation may have to suffer serious setbacks.
References
Bau, F., & Wagner, K. (2015). Measuring corporate entrepreneurship culture. International Journal Of Entrepreneurship And Small Business, 25(2), 231. doi: 10.1504/ijesb.2015.069287
Behrens, J., & Patzelt, H. (2015). Corporate Entrepreneurship Managers’ Project Terminations: Integrating Portfolio-Level, Individual-Level, and Firm-Level Effects. Entrepreneurship Theory And Practice, 40(4), 815-842. doi: 10.1111/etap.12147
Burgers, J., & Covin, J. (2015). The contingent effects of differentiation and integration on corporate entrepreneurship. Strategic Management Journal, 37(3), 521-540. doi: 10.1002/smj.2343
Eric-Nielsen, J. (2015). Corporate entrepreneurship, organizational learning and knowledge implementation. Ekonomski Horizonti, 17(3), 203-217. doi: 10.5937/ekonhor1503203e
Hanson D., Hitt M. A., Ireland R. D., and Hoskisson R. E. (2017). Strategic Management: Competitiveness and Globalisation, 6th ed., Cengage
Hind, C., & Steyn, R. (2015). Corporate entrepreneurship – Distilling the concept. The Southern African Journal Of Entrepreneurship And Small Business Management, 7(1), 69. doi: 10.4102/sajesbm.v7i1.7
Kassa, A., & Raju, R. (2015). Investigating the relationship between corporate entrepreneurship and employee engagement. Journal Of Entrepreneurship In Emerging Economies, 7(2), 148-167. doi: 10.1108/jeee-12-2014-0046
Pinkse, J., & Groot, K. (2013). Sustainable Entrepreneurship and Corporate Political Activity: Overcoming Market Barriers in the Clean Energy Sector. Entrepreneurship Theory And Practice, 39(3), 633-654. doi: 10.1111/etap.12055
Samborski, A. (2015). Corporate Governance and Corporate Entrepreneurship. Problemy Zarzadzania, 13(56), 207-221. doi: 10.7172/1644-9584.56.13
Yilmaz, M., & O’Connor, R. (2015). Understanding personality differences in software organisations using Keirsey temperament sorter. IET Software, 9(5), 129-134. doi: 10.1049/iet-sen.2014.0071
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