Concepts In Innovation Output Measurement - Myassignmenthelp.Com

Question: Discuss about the Concepts In Innovation Output Measurement. Answer: Customer segmentation of Spalk The target market of Spalk can be divided in different segments such as demographics, psychographics and behavioral characteristics. Thus, the customer segmentation of them will be discussed in these three parameters. Demographic customer segments The target customers of Spalk in terms of the age group are vast ranging from 16 years to 65 years. This is due to the reason that, Spalk is catering in the sports market and sports are having different types with different target age groups. Moreover, Spalk is having their commentary services for different sports around the world, which further enhancing their target age groups. However, it is also to be noted that the younger and teenage groups are more to be targeted due to the reason that the sports market is having the highest penetration among the younger age groups. Figure: 1 Sports market segmentation in Australia Source: (Roy Morgan, 2018) According to the above figure, it is seen that the market penetration among the younger groups of population is more and thus, the target market of Spalk in terms of age groups is more concentrated towards younger age compared to the older age. Moreover, in terms of gender, the target market of Spalk is equally segregated due to the reason that in the current time, women viewership in the sports is at par with the male counterparts. The above figure also shows that there is very less differences between the market penetration among male and female viewers. Psychographic customer segments Psychographic customer segment of Spalk can be divided in different aspects. One is interest. Customers with having interest in different types of sports or particularly in one sports and with having the interest in commentary in different languages are the target customers of Spalk. In terms of the lifestyle, customers with having time for sports but they are not having much time to attend in physical are the target customers for Spalk. They will be able to hear the commentary of their favorite sport in their preferred language at any point of time. Figure: 2 Percentage of online viewership Source: (Crane, 2018) The above data shows that, the rate of market penetration of online streaming is more with the younger age groups. Thus, the target market for the Spalk will be younger generation due to the fact they are only catering to the online market of sports. Behavioral customer segments In terms of the buying patterns, the target customers of Spalk are the customers who are more interested in the online services. These customers will be more interested in viewing the sports in more in online medium. The key benefit that they mainly sought from the service is the convenience. This is due to the reason that, these customers are having less time to attend the sports events and they do not have the convenience to watch the events live on the television. In addition, another benefit sought by the customers is the variety in the language of commentary. In the case of the television, this cannot be fulfilled; however, customers opting for Spalk are in the need of commentary in their preferred language. Stakeholder analysis Prior to the commencement of the stakeholder analysis, it is important to first identify the key internal and external stakeholders of Spalk. Internal stakeholders of them include freelancing commentators, management team and other employees of the organization, while the external stakeholders are the channel partners and the customers. Hence, in order to identify the impact and intensity of these stakeholders in the operation of the organization, stakeholder analysis will be incorporated. Figure: 3 Stakeholder analysis matrix The first element of the stakeholder analysis is the high power and low interest. In the case of the Spalk, these stakeholders are the channel partners. The second element is the stakeholders with having high power and high interest. This element will include the management team of Spalk. They are having majority of the interest in the business operation of the organization and they are having the power in the decision making process. The next element in the matrix is the stakeholders with having low power and low interest. In the present time, Spalk is not having any such stakeholders in place. The last element is the stakeholders are the ones who are having low power and high interest. In the case of the Spalk, these stakeholders are the customers, employees and the freelancing commentators. Needs of the stakeholders Needs of the stakeholders refer to the requirement of the stakeholders in enhancing their performance in the organization. In the case of Spalk, the need of the employees is the proper and effective working environment in the organization with having proper infrastructure and facilities in order to maintain their job effectiveness and performance. The need of the management team is to have skilled and right employees in right place with having the ability to deal with different organizational challenges. Moreover, their need also includes having diverse and varied number of commentators to offer commentary service in different languages to the audience. The need of the customers of Spalk is to have reliable and quality online service, which will work seamlessly in every location and at any point of time. Moreover, the customers are also in the need of having the options of hearing commentary in their chosen language. From their point of view, they are in the need of having the required infrastructure in order to avail the services of Spalk. Need of the freelancing commentators includes proper pay scale for their services and effective communication process with the management team. Moreover, they are also in the need of a laptop and internet connection in order to do the job with Spalk. The channel partners of Spalk are in the need of reliable partners who will be able to stream their content properly in the online medium and who will be able to reach the content to the maximum number of the target customers. Interests of the stakeholders Interests of the stakeholders refer to the impact of the business operations on them. The intensity to which the business operation of the organization is having positive or negative impact on the stakeholders is the interest of them. In the case of the Spalk, employees are having high level of interest due to the reason that, profit or loss in the business operation of the organization will have financial impact on the employees. Moreover, their salary and job security are also depending on the business operation of Spalk. On the other hand, customers are having moderate interest in Spalk. This is due to the reason that, ineffective customer service and service offerings will affect the user experience of them. Interest of the management team is also high due to the fact that, their financial benefits are also depending on the business operation of the organization. Channel partners are having less interest in the organization due to the reason they are having number of options and substitute services available in the market, which can be switched over at point of time. Moreover, the effectiveness of the channel partners is also not depending on the business performance of Spalk. Freelancing commentators are also having higher interest in the organization due to the reason that, their income and earnings are depended on the business performance of the organization. Power of the stakeholders Power of the stakeholders refers to the level of influence that the particular stakeholder is having with him in the daily business operation of the organization. In the case of Spalk, employees are having less power in the organization due to the reason that, they are not much having any opinion on the decision making process in the organization. On the other hand, upper level management is having higher degree of power in the organization. This is due to the reason that upper level management is having the major power in the decision making process. Customers and commentators are also not having any power in the organization. Competitive analysis Currently, Spalk is having number of competitors in the global market. Some of their direct competitors are Pundit sports, iHaertmedia and Argus media. These competitors are posing one of the key challenges for Spalk in the global market. Apart from these direct competitors, there are various other mediums already present in the market, which are not directly competing with them but posing challenges in the global market. These mediums are the live television streaming and attending the events in physical. The more people will get attracted towards these mediums, the less will be the customer traffic for Spalk. Market positioning Spalk can be considered as market leader in its segment. This is due to the reason that, they are one of the early entrants in the market and rapidly increasing their market presence in different regions around the world. According to the recent reports, in the recent time, Spalk is eying to tap the growing market in the United States (MCNICOL, 2018). In the market of the United States, Spalk will be late mover due to the presence of other competitors already in the market. Marketing strategies Spalk is having mass market marketing strategies rather than having niche marketing strategies. In accordance to that, they are having their presence in more markets around the world compared to their competitors. On the other hand, they involve online marketing extensively due to the reason that they are catering to the online customers only. Traditional marketing strategies include advertising the brand in the sports events, which helps the customers to relate the brand with the sports related content effectively. They in order to enhance their presence in maximum markets and to have maximum market reach are also initiating market development strategies. Resources of Spalk VRIO framework Valuable Human resources Financial resources Brand value Rarity Skill and attributes Organizational culture Imitation cost Assets Brand value and trademark Skills and attributes Organizational capability Organizational culture Human resources Financial resources Environmental analysis Strengths The availability of huge variety of language in commentary is one of the key strengths of Spalk. This is due to the reason that, offering services in different languages is helping them to cater to larger society and to different cultural groups around the world. Other strength of them is their distribution channel. Spalk is having their entire distribution channel online. Thus, the cost is relatively lower compared to traditional distribution channel and reaches effectively to the target customers Weaknesses Spalk is currently not having huge and extensive brand value in the global market. This is due to the reason that, they are actually startup and founded just a few years ago. Thus, they are not having to the access to the latest technologies and organizational processes. Moreover, the facility of online streaming is limited to the metro cities only. Thus, the market opportunity is also limited. Opportunities Rapid advancement in the technology will help Spalk to increase their market opportunity. Moreover, in the recent time, major population is having less time for live television streaming. Thus, they will more prefer online streaming of sports commentary. Threats Entry of new competitors in the market will reduce the profitability. In addition, rapidly developing the technology will further change the preference pattern of the customers, which will reduce the potentiality of Spalk. Evaluation of Innovation with VRIO and Timmons Model With the analysis of the different marketing strategies and SWOT analysis, it can be seen that innovation is required to be done in the respective company. The respective company can adopt disruptive or radical innovation technology, as this will create significant kind of impact on the economic and market activities. Furthermore, it has been seen that Spalk is a new start up business wherein proper analysis has been done with the SWOT analysis that helped them in understanding weaknesses, strengths, opportunities and threats. In order to gain the competitive advantage, they need to analyze their strengths in such a manner that this will help in reducing the cost of the different products as this will help them in cater to larger societies. The distribution channel has to be created in such a manner that will help them in targeting different kind of customers in the marketplace. The company needs to differentiate the different products and services in an effective manner wherein this will help them to spread their presence in the global market(Hodson, 2016). The opportunities of the company have to be analyzed effectively as this will help the company in gaining competitive advantage in the market. The VRIO analysis can be done, as this will help in evaluating the resources of the company, as this will help them in gaining competitive advantage in the entire competitive market. The VRIO stands for Value, Rareness, Imitability and Organization(Merig et al., 2016). With the help of VRIO analysis, the internal analysis is helpful to be conducted wherein this will help in assessing the growth of the firm in an effective manner. Figure 4: Timmons Model (Source: Bain Kleinknecht, 2016) From the Timmons Model, it can be analyzed that the opportunity factor needs to adopted in an effective manner as this will help in identification of different opportunities in an effective manner. With the help of Timmons Model, the VRIO analysis needs to use the resources of the company in a sustainable manner as this will help the company in gaining competitive advantage and parity. Furthermore, Spalk is a new organization wherein the resources are valuable and uncertainty has to be reduced in an effective manner to generate creativity in the market. The requirement of the rare resources has to be analyzed as this will help in creating effective team. In the VRIO analysis, it has been seen that there are gaps in the supply chain management and financial resources wherein the imitability is low and there are differences that has to be improved. Particulars Valuable Rare Imitable Organization Implications Financial Resources Yes Yes No Yes Realized sustainable competitive advantage Production and SCM Yes Yes Yes No Easy to gain sustainable competitive advantage Marketing and Innovation Yes Yes No Yes Moderate in nature to gain sustainable advantage The proper analysis of the customers and competitors is required to be done by the Spalk Company, as this will help them in gaining competitive advantage in the market. The VRIO analysis is required to be done by the company in such a manner that will help in analyzing and implementing the strengths to secure their position in the entire competitive market (Min et al., 2016). The financial resources of Spalk have to be based on financial health of the company. Furthermore, it can be seen that Spalk is a new company, the growth is no stable in nature and there are few issues relating to the access to the new technologies in the market (Sarin, Haon Belkhouja, 2018). The rapid development is required to be made by Spalk, as this will help them in using different technologies for online streaming of different programs related to advertisement of foods and services in an effective manner. However, there are different threats as there are different competitors in the market that can reduce their profitability in the market. The respective company needs to understand the need of the shareholders in an effective manner wherein the company needs to create mass strategies of marketing that will help them in spreading their presence in the entire world (Bain Kleinknecht, 2016). Finally, the positioning of the market has to be done in such a manner that will help in rapidly increasing their presence in the market and this will help them in becoming one of the growing markets in the entire world. There are large number of competitors in the market wherein the interest and needs of the stakeholders is required to be analyzed, as this will help in becoming popular with the help of the SWOT and VRIO analysis (West Bogers, 2014). The company needs to spread their presence in an effective manner throughout the competitive market. Business Proposal Key Partners Providers of materials and manufacturers of contracts Tournaments and leagues Providers of payments Sport celebrities Distributional network Key Activities Marketing Quality control Selling and marketing of sportswear and athletic footwear Equipment Design and development Production and sponsoring Value Proposition In order to bring innovation and inspiration to each and every athlete Concept of unique personalization To create different experiences and products for the athletes of today and they solve problems for the next generation Customer Relationships Customization is required to be done as this will help the respective company in attracting lucrative young shoppers Sustainable kind of innovation Online and offline experience and channels Loyalty programs Fashion and celebrities Customer Segments Sport fans Young generation Massive market Key Resources Designers for designing the different sportswear apparels Excellence of the supply chain 3D printing kind of technology Technology of Knitting Channels Spalk.com Internet Events Independent distributors Media Cost Structure Taxes Staffs Distribution Marketing and IT infrastructure Taxes Sponsorships Revenue Streams Sale of different products From the above business canvas model, it can be analyzed that proper cost structure and the revenue streams is required to be analyzed as this will help them in selling different products in an effective manner. The different process of the channels and the key activities and resources has to be analyzed effectively as this will help the company in gaining competitive advantage and compete with the other competitors in the market in an effective manner. The company Spalk needs to analyze the key activities as to generate huge productivity in the end. Reference Bain, D., Kleinknecht, A. (Eds.). (2016).New concepts in innovation output measurement. Springer. Crane, V. (2018).TV Battle Royale.Talking Trending Tech. Retrieved 9 March 2018, from https://talkingtrendingtech.com/2017/12/07/tv-battle-royale/ Hodson, R. (2016). Open innovation.Nature,533(7602), S53. MCNICOL, H. (2018).Spalk eyes US market for 'unique' sports commentary technology.Stuff. Retrieved 9 March 2018, from https://www.stuff.co.nz/business/94745640/spalk-eyes-us-market-for-unique-sports-commentary-technology Merig, J. M., Cancino, C. A., Coronado, F., Urbano, D. (2016). 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