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Introduction : Competitive Strategy
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To develop a market and attracting the large numbers of consumers there is need to have the competitive strategies, a unique idea which lead a firm to the success. Therefore, in the present assessment there has been discussion based on three theorise such as developing a competitive strategy, innovative ideas and the CAGE strategies. Therefore, the motive of such strategies is to build up a Higher Education Industry with the unique plans, innovation, economical and technical development as well as making the satisfactory level services to the consumers. To upgrade the level education as well as provoke such industries to have the successful operations there is need to implement such theories into consideration.
By considering the current market scenario there has been various companies which are following the strategic plans as to make be the giant trader in the market with the lot of capital, consumer support and the market value. Therefore, these strategies only lies over attaining the goals and objectives of the business. Hence, they do not consider how to have successful business operations in market. In terms of Higher education institutions there has been various firms which are offering the unique study techniques, methods as well as appointing the highly talented tutors to facilitate the better results or outcomes (Australia, 2016). Thus, such ideas are beneficial in context with satisfying consumers or students but it does not have the last long impacts over learning of students as well as profitable earning of the business. However, to develop a most effective educational institution in the market there is need to consider several strategies such as:
- Where to compete: This strategy lies over geographical needs such as business must make operational performances where there is low competition as well as requirement of the citizens over such locality (Martin, Nakata, Nakata and Day, 2017). Therefore, it can be said that, they must make business operations mostly in the rural or backward areas which has low competition and there has been need of such educational institution.
- What Unique Value: An educational institution must have the unique pricing strategy as well as different business ideas. It will be beneficial if they offer new methods or teaching students such as use of technologies like projectors, smart classes, e-classes etc. it will help in better learning as well as bring the healthy results of students.
- What are the sources of capability: The sources of capabilities are identifying rivals weaknesses and adopting competitive strategy to overcome them. Rivals exist in every sphere and that too in Higher education industry. It should develop well structured strategy so that institution can take advantage of their weaknesses in achieving goals in effectual manner.
- Sustainability: Sustainability means that strategies of educational institutions to remain in the market by delivering more productive courses than its competitors. By implementing competitive strategies, it may overcome them and attracting more students which eventually results in more enhanced profits.
Business model innovation
The business model innovation is important in any industry and so in Higher education industry. Business model innovation states that how do the business learn from others and how it reinvents its own business model. This is important as business operates in competitive environment and as such, good business model helps it to achieve its goals effectually with much ease (Davis and Davis, 2017). The innovation does not mean that education industry has ample of business resources and has new and modern technology but it depends on how a business innovates the model that will achieve goals.
The perspective of business model innovation in competitive strategy belongs to answering of four questions. The questions are who are the target customers of business. Next question is what do you offer to customers, next question is how do you create value for proposition and lastly, how do you generate revenue. These questions may be directly linked to Higher education industry. The target students of industry are students which pursue for higher education in their respective field of study (Leonidou and et.al, 2017). The industry should offer them unique programmes so that students may gain useful insight from it and they may get their dream jobs in highly effectual manner. This is essential as education is of no use, if it cannot meet expectations of graduates in getting the jobs. Next, Higher education must convey to students in the manner that what is the unique feature of doing courses from their institution. In simple words, value proposition must be conveyed to students so that they may enrol their admissions in the college. If value proposition is effectively conveyed to them, then education institution enjoys good revenue.
These questions are answer by following steps of creating an innovative business model:
The firs stage of business model innovation is initiation. This means that current business model has to be reviewed and analyse by education industry. This is important as reviewing business model again helps it to identify the loopholes which are required to be eradicated and removed so that well business model may be established.
This stage states that learning from others business model and initiating and developing new ideas is important as competitive strategies of others may be analysed and education industry may adopt it for attracting more students.
Consistency of business model need to be checked by education institute so that viability of business model may be reviewed (Johnson, 2017).
After analysing stages, last is to implement the business model so that revenue may be earned.
Hence, business model innovation is required to adopt innovation from others to sustain in the industry.
In accordance with this theory it concise of the ideas that, there has been various statistical, political or economical similarities between two nations, businesses as well as Educational institution. Therefore, it will be recommendation that they must use such opportunities in their daily plans. The framework is based ion flowing categories such as:
- Culture: There has been variation in languages, trading capacity, income generation as well as the operational capacity. Therefore, it can be said that various Higher Educational Institution come together they could become able to serve the nation with fruitful services like, increment in technical knowledge, rise in educational level as well as 10 to 15 times revenue generation.
- Administration/Political: There will be influence of governmental policies' ad strategies which in turn influence the operational activities such as various norms, rules and regulations affect functioning of such institutions (Lee, Hallak and Sardeshmukh, 2016). In context with thus framework the Institution share same locality and political appearance than it will be fruitful for their business operations.
- Geographic: The need of educational institutions are mainly higher in the rural or backward areas so business must plan to make operations over there (Veles and Carter, 2016). Therefore, for these regards they must make surveys at such locations and plan strategies.
- Economic: There has been variations in the earning capacity of individuals which are need to be considered and a fair business operations must be performed (The CAGE Framework â€" Distance Matters in Globalization!!!, 2015).
Hereby it can be concluded that strategies play vital role in successful achievement of goals of organisation in the best possible way. A well structured strategy provides business useful competitive advantage over others. Moreover, business model innovation is required so that Higher education industry may be enhanced in the best possible way.
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