Mymanu CLICK-Truly Wireless Earbuds with Voice Translation - Case Study Example

Name Tutor Course Date Disruptive Innovation Business Approach: Mymanu CLICK-Truly Wireless Earbuds with Voice Translation Executive Summary Disruptive innovation approach changes the existing market and creates a new version of it, which its resultant product entirely dictates. Mymanu is a disruptive business that is currently enjoying the rewards for its wireless earphones that have voice translation. The product has changed the consumer electronics market, and the awareness among the target market about the product and company continues to increase. As a result, the company schedules to expand its operations to various market regions. However, many assumptions that come with this type of approach, and it is imperative that the practitioners understand the risks and threats associated with them. Mymanu's disruptive innovation approach has little social and environmental impacts. However, it has high sustainability potential. Disruptive Innovation Business Approach: Mymanu CLICK-Truly Wireless Earbuds with Voice Translation Introduction Electronic industry has been through various evolution phase. There is a vast range of factors that influence the market globally. However, the electronic industry if Asia is particularly driven by innovation, price deflation, and growing household market. The industry in this region features the emergence of new markets and new products and services. Among the many factors, disruptive innovation approach has influenced the evolution of the industry significantly. The strategy allows creation and emergence of new markets and value networks of new innovative products, which eventually change or disrupt the existing products and their market (Boons et al., 2). Mymanu is a relatively small entrepreneurial company that has employed the disruptive innovation approach to completely alter the industry of electronics and create a new innovative product, CLICK-Truly earphone. The earphone is wireless and features a voice translation technology. Currently, Mymanu is still in the development phases and is yet to gain stability in the electronics industry considering the rate at which innovative technology is embraced and utilized into highly useful products. Marketing Analysis Discontinuities in the market are technological breakthroughs that provide the existing and potential entrepreneurs with the opportunities to evolve the industry and present a new phase. The brainstorm that always circles entrepreneurs is how to convert the gap in the market into a rational business process that completely maximizes the opportunity outcome. Specifically, the market analysis in electronics industry considers how to make use of innovation technology to provide a product that effectively fills the identified discontinuity. Globally, the earphones and headphones market is projected to continue increasing in volume and revenue as depicted in the figures below. In Asia, the consumer electronics market is changing because of the ever-growing convergence of information, communication, and entertainment. This market is characterized by increasing household income, local manufacturing, and the emergence of new innovative products. According to the Global Consumer Electronics Market Outlook 2020, Asia-Pacific is considered third according to the volume of the global market share (RNCOS, n.p.). North America and Europe come is positions one and two respectively. However, statistical analysis projects the global market to reach $3 trillion by 2020. Therefore, the consumer electronics market of Asia is large enough to accommodate the new emergences of innovative technological products. Besides RNCOS (n.p.) argues that Asia is expected to experience a significant market growth in the consumer electronics industry in the few coming years. Considering the existing constituents of the market in Asia, the most products similar to this of Mymanu mainly include earphones with wireless technology only, which their demand increases rapidly as projected by the following figure. With the new wireless device with voice translation, Mymanu is less likely to face threats of new entrants in the short run. However, technology is still continuing to advance in the field of business, and other potential businesses under this disruptive approach are expected to emerge in the long run. However, the company will not experience any threat of substitute, considering that is actually the company with the voice translation technology integrated and incorporated into the earphone device. Also, the business is currently dominant in the consumer electronics market, and enjoys monopoly benefits in the local markets. Therefore, the market currently has the low bargaining power of customers towards the company. However, concerning the bargaining power of suppliers, Mymanu many face supplier switching cost for their raw materials due to the high demand of their product. Additionally, the company currently enjoys a low level of an industrial rivalry considering that it is among the first enterprises to employ the disruptive innovation technology to manifest the electronic market of earphones. The emergence of a new business in the market that deals in innovative products are always prompted to market entry barrier. Due to the small size of Mymanu Company, the economic scale is one of the barriers to entry in monopoly market setting. The enterprise may not be able to dominate the consumer electronics market in its earphones product line due to inability to manage large inventories that can secure a large market. Consumer loyalty is another barrier that the company is likely to face. Due to the new characteristics of the products, they are manufacturing in comparison to what exist in the market; Mymanu will face consumer loyalty issues before the target market is fully aware of their product qualities. Even though the enterprise involves a team of expertise, they are still likely to face reputation issues of their product and company as another barrier to entry into the market. They have just started and are yet to develop the product and brand image among the target market. Marketing Plan Most businesses use the traditional methods of marketing to increase the awareness of the potential consumers about their products. However, consumers have become used to the old techniques and convincing them towards understanding the usefulness of new products has proved to be very involving. However, as the phases of business evolve, innovation technology is not only used to produce new products, but also to market them as well. The innovative marketing plan entails listening closely to the consumers, identifying their needs, and delivering exactly what they want. According to Hansen (18), the disruptive company has one goal; design a products or service to match the specifications of the market. Disruptive innovation business is more likely to affect the market and time affects the performance most likely as shown in the figure below. Disruptive marketing plan entails a series of steps that an enterprise should consider to disrupt the market. The company needs to conduct a market research to identify the discontinuities and opportunities in the market. This could be a service that should be but not provided by the existing products in the market. The information gathered from the research can be used to design the characteristics of the intended product. The next step is creating awareness among the target consumers about the new product and how it is useful. This involves developing an online presence of the company and its new innovative product. Mymanu has employed disruptive marketing plan and the disruptive innovation technology to determine that the market needs an earphone that is wireless and can translate voices. Also, they have identified that the product should be operational by a touch or swipe across the knob surface. Therefore, the enterprise has disrupted earphones consumer electronics market using CLICK-Truly wireless earphones with voice translation, which has successfully gained a large share of the market. Operational Plan Mymanu has used the disruptive technology business model in its operation plan. The key partners in this business include parties that possess the potential needs of innovated wireless control speakers with voice translation and small in size for portability and accommodation by the ears. These partners include universities, entertainment industries, and user communities. The key operation activities of producing a disruptive technological product such as CLICK-Truly wireless earphone with voice translation include research and development, manufacturing, marketing, and service deliveries. Manufacturing of the product entails designing and developing the device and application that are required for the intended purposes. Besides, a sustaining strategy results in stability of the product in the market sue to the additional qualities. Therefore, Mymanu’s operational plan began with research and development of the design of the CLICK-Truly earphones according to the intended innovative outcomes. Manufacturing of the product then proceeds by a team of engineers, designers, and developers, as well as facilitators in various fields such as marketing and consumer services. Sustainability and Impacts The current business sustainability agenda mainly entails eco-innovations, eco-efficiency, and corporate social responsibility (CSR) practices (Shaltegger & Wagner, 5; Garetti & Taisch, n.p.). However, the manufacturing industries are considered to have insufficient measures to deliver the ultimate changes that are required to achieve the long-term social and environmental sustainability. Disruptive innovation business approach involves a business model that purports to deliver sustainability and controlled impacts on social and ecological perspectives of the society. Disruptive, among other types if innovations, is considered the future of the sustainable economy. Disruptive innovation approaches to cloud-based computing and information technology (IT), energy, food, agriculture, and new forms of finance are some of the sustainable application of technology in business with little or no environmental impacts (King & Baatartogtokh, 85). The innovated businesses dedicate part of their investments portfolios to making investments that reduce their environmental and social repercussions. However, Claude-Gaudillant & Quelin (3) disruptive innovators required to make choices concerning the types of competencies to access, how to access them, and when to commence the access process, among other factors. Disruptive innovation approach takes into account the potential effects of their operations and products sustainability as well as impacts as part of their model of winning over the traditional methods of business operations (Boons et al., 2). Most multinational firms that use the traditional approaches have been associated with effects on climate and other components of the environment. Waste products from the manufacturing processes affect the status of the environment and the wellbeing of people in it. Therefore, disruptive innovation approach makes use of the researched facts about the potential social and environmental threats of their activities and designs the product that least affects people. CLICK-Truly wireless earphone with voice translation is a product of disruptive assembly technology that gathers the various components of the product as raw materials, and design, develop and assemble them into the intended product. The operation process entirely involves engineering, designing and developing devices, which has a little waste disposal to the environment. Also, manufacturing of CLICK-Truly earphones focuses on the ability to sustain the entertainment services, which entails positive effects to the target consumers socially. Therefore, Mymanu's disruptive approach primarily involves the production of products that possess the sustainability qualities and little impacts on the environment concerning waste disposal among other corporate social responsibilities. Besides, the main objective of the company is to produce and supply technologically innovated earphones that provide users with improved experience of sound and music quality. Overall Schedule With the successful launch of Mymanu CLICK-Truly wireless earphones with voice translation, the company seeks to develop MymanuTM headphones with even enhanced flexibility and convenience. According to their official website, the company has scheduled to increase the awareness about their products even into the potential markets in Europe and other regions. Critical Risks and Assumptions To manage the disruptive innovation business approach effectively, it is imperative to consider the critical risks that have the potential of affecting the validity of the strategic operations. It is also essential that the executive management and board of directors of a disruptive firm consider and intervene to the risks that can arise from both the operations processes and the disruptive changes in the target market. Such considerations and interventions can be towards responding to the actions of the competitors, changing customers’ needs, and actions of the process regulators, among others forces. Disruptive innovation can advance the quality of services, create new markets, cut production and operation costs, or replace products or services in the existing market. However, it can also result in totally reversed results as compared to the intended outcomes. The approach holds the risks of effects of the competitors’ actions (Hagel et al., 17). Disruptive innovation approach can result in increased prices of the raw materials and other requirements, which may cause the target users to opt for the substitute products are the company increases the price of their products in response to resources price changes. However, this risk is considered long-term and strategic intervention can normalize the effects. The necessary strategic approach towards this problem is establishing multiple sources of the raw materials to reduce the bargaining power of suppliers. Another risk that is likely to affect the operations of Mymanu disruptive business is the effect of new competitors that enter the market. Considering the consumer electronics industry that experience rapid changes presently, there are risks associated with the existing and new entrepreneurs borrowing ideas form the company and advancing the innovation even further, resulting in reduced market share and profitability of the company. To maintain or expand the market share of the Mymanu products, it is significant that the enterprise maintains regular updates about the market changes and the potential impacts they may have on the market share and profitability. Most businesses assume that expansion of the business will continue to increase as the days count. This assumption is always associated with some others such as the awareness of the users about the, company and its products will continue to increase and, therefore, the brand and company recognition will increase and consequent increased customer loyalty to the company (Henisz & Zelner, n.p.; Sandstorm et al., 472). Disruptive innovation business approach recommends that the otherwise of the above assumptions should also be anticipated and intervened strategically. Therefore, Mymanu should employ the disruptive business model to consider and address all the assumptions and risks involved in their operations to avoid negative impacts in the future. Conclusion In conclusion, disruptive innovation approach changes the existing market and creates a new version of it, which the disruptive product entirely dictates. The approach may face various instances of barriers against the desired outcome; however, the company can manipulate the various factors that are responsible for achieving the purported intent, such as options for the sources of raw materials to manage chances of pressure from the customers as well as the suppliers. Mymanu is an enterprise that has employed the disruptive innovation approach to successfully create and expand a new market for its technologically innovated product, the CLICK-Truly wireless earphones with voice translation. However, there are chances of entry of new competitors into the market despite the assumptions that the market share and profitability will continue to increase. Therefore, it is essential that the company adopt strategies that can anticipate the future threats and address the potential risks that are associated with the assumptions made presently. Works Cited Boons, Frank, Montalvo, Carlos, Quist, Jaco, & Wagner, Marcus. “Sustainable innovation, business models, and economic performance: an overview”. Journal of Cleaner Production, Vol. 45, 1-8. (2013): Print. Claude-Gaudiliat, Valerie & Quelin, Bentrand V. “Innovation, new market and governance choices of entry: The internet brokerage market case”. Industry and Innovation Journal. (n.d.): Print. Garreti, Marco & Taisch, Marco. “Sustainable manufacturing: trends and research challenges”. Journal of Production Planning & Control, Vol. 23, No. 2-3. (2012): Print. Hagel, John, Brown, John S., Wooll, Maggie, & Maar, Andrew. “Patterns of disruption: Anticipating disruptive strategies in a world of unicorns, black swarns, and exponentials”. Deloitte University Press. (n.d.): Print. 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Retrieved from http://www.rncos.com/Market-Analysis-Reports/Global-Consumer-Electronics-Market-Outlook-2020-IM757.htm Sandstrom, Christian, Berglund, Henrik & Magnusson, Mats. “Symetric assumptions in the theory of disruptive innovation: theoretical and managerial implications”. Journal of Creativity and Innovation Management, Vol. 34, No. 4, 472-483. (2014): Print. Schaltegger, Stefan & Wagner, Marcus. “Sustainable entrepreneurship and sustainability innovation: categories and interactions”. (n.d.): Print. Read More