Science Technology And Innovations Markets Firms And Policies

This essay focuses on two different sectors that are entirely different from each other. Their strategies and working pattern are entirely different from each other. Sector A is focused upon the fashion clothing industry, and sector B focused upon the electronic industry. For both the industry, their strategies are vital pointers for their success. In the sector, A Zara is the clothing retailer brand which comes under the fashion industry. Along with another sector that is sector B is focused upon the electronics industry, and in the electronic industry, Apple is the best company which is dealing into this sector.

At present senior fashioned industry is continually changing, and this industry has more ability to acquire the competitiveness. This recognised the fluctuating dynamics of the industry; diminishing mass production, improved structural features in the supply chain, need for a more reasonable cost and quality (Turker, and Altuntas, 2014). The fashion industry is a multibillion-dollar global enterprise devoted to the business of making and selling clothes. Zara is a leading and growing brand in the industry. It is one of the biggest international fashion companies (Nenni, et al., 2013). The customers generally rely on the brand because it has a different and unique business model that involves the design, production, distribution and sale. It operates a diverse kind of working pattern.

In contract under sector B essay comprise the electronic industry. This industry is a wide-ranging industry, and today scenario, it is one of the largest global industries. This industry is one of the most profitable sectors. These industries are increasing quickly as a consequence of aggregate demand from developing market economies (Wong, 2013). Numerous countries are progressively manufacturing additional electronics. Investment in distant production of electronics has improved affectedly and resulted in various new factories and factory developments. Electronic sector development accelerated by increasing consumers spending around the globe. As developing economies grow, consumer demand also increased in the relation of electronic products (Büyüközkan, and Çifçi, 2012).

Further competition is energetic, the costs connected with electronics production depressed and growing the obtainability of inexpensive electronics products. Apple is one of the leading brands in the electronic world. Apple is a company, which is built on customer goods and competes with numerous extra customer goods companies. However, to adoptive a competitive benefit above its opponents, the company scores a unique advertising strategy for its products.

Zara and apple have a different working pattern, and these both companies acquire a different kind of tactics. Apple uses tactics that provide their company to foster a competitive advantage. Apple’s business strategy classified as product differentiation. The company is more rely on attractive designs and advanced functionality. Company’s strategy moreover focused upon the adapted advanced features and capabilities of its products and services as bases of its competitive advantage. Apple business approach can be considered as an upright combination in a manner that the corporation has progressive expertise in software, hardware, and services at the same phase. Apple’s upright combination is one of the foremost features that set it separately from the rivalry (Kumar, et al., 2012). The company moreover believe that products should design in this pattern where customers can experience better and enhanced. They designed their products which provide better customer experience. The company tries to connect people emotionally and can get the exact demand and requirements of the customer. For meeting with the demand and future growth, apple uses the generic strategy. For achieving future growth, the company has produced its products with the motive of continuous innovation. If a company does not produce its products on a constant basis, competitors can evenly catch the new technologies. Continuous innovation is one of Apple’s strategic purposes created on the significant variation in generic competitive strategy. In adding, to uphold business growth, the corporation requisite keep increasing its market reach, such as in the comprehensive consumer electronics market.

Along with, Zara has an entirely different strategy. It aims to the sustainable development of the society and that of the environment with which people interact. Company has a different unique strategy; the company’s primary focus is upon the environment and the society. Zara’s unique strategies make their products more qualitative. Along with that, the Zara has vertical integration and product replacement highlight two of Zara’s unique approach to retail fashion (García-Álvarez, 2015). Zara’s affectedly low inventory environment, the idea is that low-inventories generate logic of determination among customers. Low-inventories facilitate Zara in reducing the amount of value which is ultimately resulted in a reduction of sales. Company adopt the direction that ultimately helps in to get the success and create the brand more reliable and consistent. Zara implements its strategies as per the latest trends and customers’ demands. In the fashion world, trends and constant change in style provide the company motivation to produced products as per the latest trends and fashion (Joy, et al., 2012).

Today Apple is one of the leading technology companies in the world. Since its foundation, the company has grown at a very rapid pace and holds the top spot in the technology industry (Han and Mithas, 2013). Although the level and intensity of competition in this market is very high, Apple has made a strong position for itself in the market. The primary source of strategy and technology for Apple is Research & Development (R&D). It forms the very backbone for the firm on which it can perform well and succeed in the market, along with sustaining in the industry for such a long time. The company pays much attention to conducting thorough research and development activities.

Condition of the market is already very competitive as it is; the market is highly saturated (Wang and Wang, 2012). Due to this reason, Apple focuses more on research and development activities. It believes that it is one of the key sources from which it can edge over its competitors and therefore be able to sustain in the market while fulfilling varied needs and demands of the customers. In addition to this, Apple also emphasises on using research and development as a means of maintaining its position as an innovative firm (Zawislak et al., 2012). In this regard, the company pays much attention to using this functions as a means of developing new technologies, that attracts not only the customers but also is a tool through which the technology firm can create unique demands in the market which only it can fulfil. For instance, Apple was the first company to introduce a smartphone with no headphone jacks and also launched the AirPods, a bluetooth earphones. This way, the company was able to create a new type of demand in the market, which only it could have fulfilled at the time (Onetti et al., 2012).

For a technology-oriented company like Apple, conducting research and development is an essential activity. In a similar sense, the role of public science is also essential for the company. It is also one of the primary sources of innovation for the firm. By using public science, the company aims at collecting ample amount of information about the customers and also the possible technologies that it could introduce shortly (Haeussler et al., 2012). Through this source of technology, the company can collect information about the needs and demands of the customers and also the type of technology that they want to see and use in the future. Concerning the fact that the technology industry and the mobile market is highly competitive and saturated, using public science allows the company to collect information about future trends and also the possible needs and demands of the customers (Liu et al., 2013). Based on such information, Apple can make future strategies that could help it to perform better and also fulfil the demands of the customers. In this regard, the company often uses a mixed direction for technical change wherein it aims at keeping the same line of products but also introduces futuristic products, as iPhone X was considered when it was launched (Dora et al., 2013).

Zara is the leading name in the fashion industry, and since its foundation, the company has grown at a very rapid pace. It is one of the leading names in the luxury fashion world. For Zara as well, the role of technology is significant. The company has gained a significant position in the market by using latest and innovative technologies. For the company, the primary source of technology is its suppliers. The focus of the fashion retailer is on determining ways through which it can bring innovation to its customers by innovating its supply chain network. By innovating its supply chain and the distribution network, Zara can easily reach out to its customers and inform them about its products (Wang et al., 2014). Through this approach, the company can develop better, healthy and effective relations with the customers and also ensure that their needs and demands are fulfilled to the greatest possible extent. Herein the company relies heavily on innovating with its suppliers as well as software and systems, as the primary objective is to improve the overall experience of the customers. This way the firm aims at building healthy and effective relations with the suppliers as well as the customers (Liu et al., 2013).

The main direction of change for the firm is in regard to cutting down on its costs. The fashion retail industry is highly competitive. It is a very saturated market. Since Zara is one of the high-end retailers, selling luxury fashion items, strategic direction for the firm will be to determine ways to reduce its costs (Waller and Fawcett, 2013). Through this approach, the company can also focus on improving relations with the customers and thereby selling them cheap, high-quality, yet luxury fashion items. For the long run, this can be an excellent approach for the firm and can help it to perform better. Furthermore, the company should also focus on developing new products and supporting the existing processes and systems. This is the kind of innovation that the organisation can focus on to improve its operations and as a result, be able to gain and maintain a significant share of the market (Chae, 2012).

In terms of the Teece’s Complementary Assets Framework, two factors have an impact on overall operations of Apple and thereby its performance in the market as well (Tang and Zhou, 2012). These factors are imitability and complementary assets. In this framework, Apple sells products that are although not imitable completely, because the company can file for patents and copyrights. This way, it can safeguard its products from being imitated by other companies. Although they can use the concept used by Apple, they cannot use the exact technology. This way the company still faces the competition but is safe in terms that its products and technology cannot be copied exactly (García-Álvarez, 2015).

In contrast to this, Zara, the leading fashion brand, can also be evaluated through the lens of imitability and complementary assets herein, although the company is not safe exactly from the issue of imitability. Since patents and copyrights do not have a significant role in the fashion industry, any products introduced and sold by Zara can be easily imitated by others (Joy et al., 2012). On the other hand, the company boasts of having very useful complementary assets, i.e. networks and distribution channels, brand name and others. Essentially it is these complementary assets that have helped the company to perform effectively and thereby sustain in the market for such a long time (Turker and Altuntas, 2014).

At present senior fashioned industry is continually changing, and this industry has more ability to acquire the competitiveness. In contract under sector B essay comprise the electronic industry. This industry is a wide-ranging industry, and today scenario, it is one of the largest global industries. This industry is one of the most profitable sectors. Apple business approach can be considered as an upright combination in a manner that the corporation has progressive expertise in software, hardware, and services at the same phase. Apple’s upright combination is one of the first features that set it separately from the rivalry. Zara’s affectedly low inventory environment, the idea is that low inventories generate logic of determination among customers. Low inventories facilitate Zara in reducing the amount of value which is ultimately resulted in a reduction of sales.

REFERENCES

• Turker, D., and Altuntas, C. (2014). Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports. European Management Journal, 32(5), 837-849.
• Nenni, M. E., et. al., (2013). Demand forecasting in the fashion industry: a review. International Journal of Engineering Business Management, 5, 37.
• Joy, A., et. al., (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion theory, 16(3), 273-295.
• Wong, C. P. (Ed.). (2013). Polymers for electronic and photonic application. Elsevier.
• Büyüközkan, G., and Çifçi, G. (2012). A combined fuzzy AHP and fuzzy TOPSIS based strategic analysis of electronic service quality in healthcare industry. Expert systems with applications, 39(3), 2341-2354.
• Kumar, S., et. al., (2012). Towards genomic selection in apple (Malus× domestica Borkh.) breeding programmes: prospects, challenges and strategies. Tree Genetics and Genomes, 8(1), 1-14.
• García-Álvarez, M. T. (2015). Analysis of the effects of ICTs in knowledge management and innovation: The case of Zara Group. Computers in Human Behavior, 51, 994-1002.
• Han, K., and Mithas, S. (2013). Information technology outsourcing and non-IT operating costs: An empirical investigation. Mis Quarterly, 315-331.
• Wang, Z., and Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert systems with applications, 39(10), 8899-8908.
• Zawislak, P. A. et. al., (2012). Innovation capability: From technology development to transaction capability. Journal of technology management and innovation, 7(2), 14-27.
• Onetti, A. et. al., (2012). Internationalization, innovation and entrepreneurship: business models for new technology-based firms. Journal of Management and Governance, 16(3), 337-368.
• Haeussler, C. et. al., (2012). Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities. Journal of business venturing, 27(2), 217-233.
• Liu, H. et. al., (2013). The impact of IT capabilities on firm performance: The mediating roles of absorptive capacity and supply chain agility. Decision support systems, 54(3), 1452-1462.