The paper "Strategic Business Management" Is a great example of a Management Assignment. Right from the beginning, Redflow had several strengths and distinctive capabilities, which helped ensure that it developed into a competitive and innovative business in the energy industry. One of the strengths was that the business’ founders were well experienced in the fields of engineering, technology, and management. This made it possible for them to create a feasible and realistic product solution. The two founders also sought background knowledge in business management by attending workshops and seminars, which helped in strengthening their management styles.
Moreover, the two founders had the same goals, vision, and motivations. Another distinctive capability for the company was that its unique products (Zinc-bromide batteries) were much superior in terms of energy storage capacity than the ordinary lead-acid batteries that were already in the market. The new batteries were easy to transport due to their small weight and size and saved on transportation and installation costs. The other strength is that the market did not offer any meaningful competition. In fact, Redflow was a pioneer in developing inc-bromide batteries.
This means that the company’ s products could readily sell in the market, subject to marketing strategies employed (De Kluyver, 2000). In the early days of business launch, Redflow managed its key strengths and unique capabilities by running the business on family resources. Later on, the business acquired a battery developing company that had gone broke a few years early. The acquisition was a strategic move in strengthening the company’ s unique strengths in that it offered opportunities for Redflow to gain valuable knowledge and assets at a low cost (Besanko, Dranove & Shanley, 2005).
In addition, the company was able to secure funding from the government. This added to the company’ s expanding strengths and made it possible for the company to expand the scope of production. It is the case that if Redflow did no take the strategic move of acquiring the firm, it could have taken it a considerably long period of time to create an impressive market presence due to lack of adequate skills, knowledge, and strategic resources. Question 2 One of the most important risks that Redflow faced when starting its innovative product was the possibility of the new product failing to attract the required attention in the market.
According to Ghemawat (2001), developing an innovative product involves risks of whether consumers will accept the new features that have been added to an existing product. Already, the market was saturated with competing products including lead-acid batteries, which meant that it could be difficult for Redflow to create a stable market niche for its new innovative product. Another risk was that developing the product was a costly venture because hefty resources were required in the areas of research and development as lots of experiments and tests had to be performed initially.
The company’ s founders had limited financial resources and therefore, it could be difficult for the business to grow into a meaningful size, capable of serving a sizable market share. For this reason, it could be difficult to accurately predict the exact specifications as well as potential sales volumes of the new product. Recent research studies (Ghemawat, 2001) have shown that new products can suffer from notoriously high failure rates. One of the reasons for this failure is a vague understanding of customer needs.
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