Discuss about the Video Analysis for Business Model Innovation.
Key Ideas of the Video:
In the video ‘Business Model Innovation’ Prof. Dr. Oliver Gassmann talks about the importance of business model innovation for the growth and success of the business organizations. It is true that, in today’s more complex and competitive business scenario, each and every organization should adopt as well as implement innovative strategies and techniques in order to accomplish the goals and objective of the organization in an effective and a more comprehensive manner. Along with this, innovation is essential for all the industries. It is because of innovation plays a significant role to improve the customer value, to reduce the organizational costs, and to create competitive advantages for the growth of the organizations (HSGUniStGallen. 2013). Moreover, it is also described that innovation is a superior method than any other method adopted by the business firms. In recent years business model innovation has gotten major attention of the business organizations. Moreover, business model innovation is accepted as a key element of organizational success.
On the other hand, it should also be noted down that, these days, the success of all the famous organizations such as: Apple, Google, etc. only depends on their innovative business models. Apart from this, it is also true that there are some misconceptions that are linked to innovation. For case, it always provides new ideas that nobody used before. The other fallacy is that innovation has need of big resources. The misconceptions related to innovation are not true. It is because of innovation means that how business organizations implement their ideas as well as strategies and also use available resources in a new way (HSGUniStGallen. 2013). Moreover, Prof. Gassmann expresses that initiation, ideation, integration and implementation are the four major components of innovation and business organization must follow these components to accomplish desired results to fulfill the need of customers in an effective and a more comprehensive manner. In this way, it is concluded that, this video illustrates new ideas about the business model innovation and theses ideas will play a crucial role in order to bring revolutionary changes within the industry.
Application of Key Ideas of Video:
The key ideas that are extracted from the video is already adopted as well as implemented by most of the organizations to accomplish competitive advantages over the competitors. I believe that Nokia should also adopt the idea of business model innovation for the success and growth of the organization. It should be noted down that, in current the productivity and profitability of Nokia is less than other companies like Apple Inc., Samsung, etc. The main reason behind it is that Nokia did not take help of innovation to produce innovative products to satisfy the needs of the customers. For example, Nokia did not produce its cell phones with play store and for that reason; it is unable to satisfy the entertainment needs of customers (Afuah, 2014). For that reason, I believe that Nokia must implement business model innovation to provide customer satisfaction and to improve the goodwill and prosperity of the firm.
Pankaj Ghemawat: CAGE Framework to Evaluate International Trade Opportunities
Key Ideas of the Video:
In the video, ‘CAGE Framework to Evaluate International Trade Opportunities’ Pankaj Ghemawat portrays the CAGE (cultural, administrative, geographic, and economic) framework for the business organization. It is because of with the help of the CAGE framework, business organizations may evaluate other countries in terms of the distance that subsist between them (Carlson School of Management. 2015). Along with this, with the help of the CAGE framework, it is also expressed that business organizations should not only take in the geographic distance but also include the cultural, administrative, and economic differences or distances between them. Moreover, the CAGE framework plays a significant role in order to provide a broader view of distance and to offer innovative way of thinking on the subject of location and the trade opportunities for the success and growth of the business firms at the global level.
On the other hand, it should also be noted down that, the CAGE framework is essential to do business between countries in an effective and an appropriate manner. The framework plays a major role in order to remove cultural as well as trade barriers among the nations. Moreover, with the help of the CAGE framework, business organizations become able to discover locations to purchase raw material at lower costs, to access to markets as well as consumers, and to make valuable decisions for the success and growth of the firms (Carlson School of Management. 2015). In this way, this video demonstrates the key ideas that are related to the CAGE framework. Business organizations can use the CAGE framework to evaluate the trade opportunities and to reduce the trade barriers in order to accomplish the goals as well as objectives of the firms in an effective and a more comprehensive manner.
Application of Key Ideas of Video:
It is true that, in current a few organizations has adopted and implemented the CAGE framework to take advantages of trade opportunities at the global level. Along with this, according to me, McDonald's should use the CAGE framework in order to assess the international trade opportunities in an effective and an appropriate manner. The main reason behind it is that this framework would be helpful to reduce the geographical distance and also remove the trade barriers to McDonald's. It should be noted down that at what time McDonald's tries to enter in new markets or nation than it faces numerous challenges to do its business effectively. It faces difficulties to purchase raw materials in other nations. The firm also faces loads of cultural and trade obstacles within the economy of other nation (Ghemawat, 2013). In this situation, with the help of the CAGE framework, McDonald's would be able to understand the culture and economy of the other nation and also would be proficient to carry out its business in new market and nation effectively. Therefore, I accept as true that McDonald's must take help of the CAGE framework to enlarge its business at the global level.
Afuah, A. (2014). Business Model Innovation: Concepts, Analysis, and Cases. NY: Routledge,
Carlson School of Management (2015). Pankaj Ghemawat: CAGE framework to evaluate international trade opportunities. Available At:
https://www.youtube.com/watch?v=7FpUJaG7uMk [Accessed on: 21th August, 2016]
Ghemawat, P. (2013). Redefining Global Strategy: Crossing Borders in A World Where Differences Still Matter. Boston: Harvard Business Press.
HSGUniStGallen (2013). Business Model Innovation. Available At: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed on: 21th August, 2016]