Technological advancements and changes in the economic environment have had significant influence on the retail industry. These factors have directly impacted on the vitality and viability of most high streets shops while the emergence of e-commerce resulted in closures of some stores and unemployment. However, many retailers adapted to the changes in the business environment leading to even more superior business outcomes than before. For instance, technology has helped retailers to enhance effectiveness of decision making, efficiency of operations, vitality, viability and sustainability of retail strategies. Ashworth (2012) framework of six stages of organisational development helps to understand how a retailer adapted its operations to gain sustainable edge in the contemporary market environment. Based on the case of various retailers, this essay explores the application of Ashworth framework in explaining organization development in the retail industry.
Table of Contents
1. Task A: Application of Ashworth (2012) framework of six stages of organisational development in retail industry
2. Task B: Opportunities and innovation challenges for an International luxury watch brand
3. Value innovation and blue ocean strategy
Objectives and Topics
This document examines the evolution of retail strategies through the application of the Ashworth (2012) six-stage development framework and explores the innovation challenges faced by the international luxury watch industry in a digitally transforming market.
- Application of the Ashworth (2012) framework in modern retail environments.
- Technological, demographic, and socioeconomic drivers of market change.
- Strategic analysis of the international luxury watch sector.
- Theoretical examination of Value Innovation and Blue Ocean Strategy.
- Evaluation of organizational adaptation and business sustainability.
Excerpt from the book
Value innovation and blue ocean strategy
Value innovation is the cornerstone of Kim and Mauborgne (1997)’s blue ocean strategy. The term innovation refers to the generation, acceptance and implementation of processes, new ideas and offerings. In a business management context, innovation encompasses new approaches to face the competition within an industry. The conception of value innovation has been proposed by (Kim and Mauborgne, 1997) and other scholars (Baden-Fuller and Pitt, 1996; Pitt and Clarke, 1999). It involves the creation of customer value and competitive advantage (Baden-Fuller and Pitt, 1996). From this perspective, value innovation occurs on three master platforms– product platform, service platform and delivery platform. The product platform is the element that refers to the physical product or service, the service element involves support such as customer service, maintenance, warranties and training for distributors and retailers, the delivery element includes the distribution channel and logistics (Sheenan and Vaidyanathan, 2009).
Strategic changes should therefore be implemented through value creation activities such as creating new and improved elements of a product or service or minimizing costs through elimination or reduction of unnecessary aspects of the product life cycle (Kim and Mauborgne, 1997). The goal of value creation is therefore to create new demand and change the market in a way that renders competition irrelevant.
Summary of Chapters
Task A: Application of Ashworth (2012) framework of six stages of organisational development in retail industry: This section details the six stages of organizational development, illustrating how retailers adapt their technological and operational strategies to achieve sustainability.
Task B: Opportunities and innovation challenges for an International luxury watch brand: This chapter analyzes the current state of the global Swiss watch market and identifies how digital transformation and shifting consumer demographics necessitate new innovative approaches.
Value innovation and blue ocean strategy: This part provides a theoretical review of the Blue Ocean Strategy, discussing its principles of value creation and its potential impact on competitive positioning.
Keywords
Ashworth Framework, Retail Industry, Organizational Development, E-commerce, Luxury Watches, Swiss Watch Industry, Digital Transformation, Technological Drivers, Demographic Drivers, Socioeconomic Drivers, Value Innovation, Blue Ocean Strategy, Competitive Advantage, Market Expansion, Sustainability.
Frequently Asked Questions
What is the primary focus of this work?
The work focuses on organizational development in the retail sector using the Ashworth (2012) framework and examines the strategic challenges of the luxury watch industry.
What are the central thematic fields covered?
The central themes include digital retail evolution, technological and socioeconomic drivers of market transformation, and the strategic logic of value innovation.
What is the primary research goal?
The goal is to understand how retailers adapt to changing business environments and how luxury brands can overcome innovation challenges to remain competitive.
Which scientific methods are employed?
The paper utilizes a case-study approach and theoretical analysis of established business management frameworks and recent market data.
What topics are covered in the main section?
The main sections cover the six stages of organizational development, the impact of AI on the watch market, and the critique of Blue Ocean Strategy.
Which keywords best characterize the work?
Key terms include organizational development, retail, luxury watches, value innovation, and digital transformation.
How does the Ashworth (2012) framework assist retailers?
It provides a roadmap across six stages, from initial web presence to sustainable business continuity, helping retailers gain a sustainable edge.
What specific innovation challenges do Swiss watchmakers face?
They face challenges related to shrinking market exports, the dominance of smart watches, and the need to balance traditional heritage with modern consumer demands.
What is the core critique of the Blue Ocean Strategy mentioned in the text?
Critics argue that it lacks evidence for universal application and that it may focus too heavily on market development at the expense of effective short-term competitive strategies.
How does EMO aid in the watch industry?
Emotional Analytics (EMO) uses AI to classify social content data, helping marketers understand consumer emotional engagement to drive data-led growth.
- Quote paper
- Difrine Madara (Author), 2020, Strategic marketing in the international luxury watch market, Munich, GRIN Verlag, https://www.grin.com/document/961653
