Transformational Innovations

Zopa is a UK-based revolutionary start-up that offers a significant challenge to the banking industry. It provides peer-to-peer financing at low interest rates to both borrowers and lenders. It is an alternative to banks because it allows people to borrow from one another. Borrowers and lenders are offered lower interest rates than they would receive from banks. A person can join Zopa as either a lender or a borrower. It assesses borrowers’ credit risk using both conventional and unconventional data. Eestor promises to revolutionize the energy industry by providing an efficient and dependable source of electricity for autos. It has developed a high power-density solid-state battery that is capable of storing ten times the energy that is stored in the conventional lead acid batteries. Eestor solid state batteries are very light and can be recharged within few minutes. Its recharge cycle is unlimited. The solid state battery does not have to overheat risk or materials that are harmful. The high-power density solid-state battery is a threat to lead-acid battery. NextMedium aims to transform the advertising sector by introducing innovative solutions to the industry. The advertising technology is based on brand integration (Erick and Jeanette 81-83).

Question 2

Zopa is not likely to replace the existing business but brings new customers who have been left out due to the unfavorable interest rates by banks. The Eestor high-density solid state battery has the potential of replacing the lead—acid battery since it is highly efficient, affordable and sustainable. The NextMedium brand integration is likely to expand the advertising market by reaching more advertisers through the online platform.

Question 3

Despite the fact that innovation is directly linked to the performance of business, many companies are struggling in their attempts of becoming successful innovators. Effective organizational management can assist companies in improving their innovation performance. The approach focuses on four main fundamental factors that include systems, strategy, culture, and collaboration. The firms should develop an innovative strategy that is integrated with their goals and the missions and is aligned with the organizational system and culture. The development of business environment that promote innovation is often difficult, costly, disruptive and time-consuming since extensive changes in the culture and systems of an organization is required. Firms are often deterred from embracing innovation due to the high risks of failure associated with major changes in an organization set up (Erick and Jeanette 85-86). The benefits of transformational technology can be realized in the long-term, but firms often focus on short-term gains and cost reduction. The development and implementation of innovative strategy entail systemic identification of area of interests, problems, and should be based on the core business objective as well as techniques such as market analysis and environmental scan.

Question 4

Brand positioning assists a firm to own a market niche for a particular product using several strategies such as promotion, pricing, competition, distribution, and packaging. It aims at creating a unique impression in the minds of customer to enable customers to associate something specific and desirable with the brand that makes it distinct from others in the market. Creating a brand positioning statement is vital in guiding the market and operating decisions of an organization. It assists in making key decisions affecting the perception of customers concerning a certain brand. Focus and clarity can be brought into the promotional tactics, marketing strategies and advertising campaigns using a well-crafted and intelligent positioning statement. The statement can play a crucial role in facilitating the making of effective decisions, assist in brand differentiation as well as attract target customers and win the market shares from competitors. Effective positioning in the marketplace can be achieved using the following strategic steps: determining how a brand is currently positioned; identifying direct competitors; understanding the brand position of the competitors; comparing the brand position of a company to its competitors; the development of a value-based and distinctive positioning idea; crafting brand positioning statement; and testing the efficiency of brand positioning statement (Erick and Jeanette 84-87).

Work Cited

Erick Schunfeld and Jeanette Bovzo, “The Next Disruptors,” Business 2.0, October 2006, pp. 80–96.