Introduction
In recent years, the nature of business has transformed significantly. The surge of the globalization phenomena has created a massive interconnected “global village” that has also led to the integration of markets. Consequently, competition for the market share has increased exponentially. Businesses have to position themselves innovatively as well as strategically to win the consumers in the market (Hayes, 2014). Strategic issues such as production, packaging, sales, promotional mix, as well as marketing have to be targeted and strategic to enable a firm to establish a competitive edge in the market and maintain or expand its market share. Most companies in the world market have resorted to consumer-driven strategic approaches. These involve the obtaining of information about the clients, consumer behavior, culture, and other socioeconomic factors that influence their purchase conduct. Additionally, their preferences and tastes are also studied. Consequently, the business can design its production policies and strategic market approaches to meet these needs and preferences. This consciousness has led to the surge of the sustainability and eco-friendly policies among businesses.
I recent times, the global society has experienced a massive surge in awareness about climate change and the current effects and potential impact of global warming if nothing is done. It has led to increasing demand from the communities for action by the governments and the corporate sector. The business industry has responded by making moves to implement sustainable or green strategic approaches and sustainable business models to meet the needs and preferences of the majority of the customers. In this case, the simulation case and the studied company Apple Inc. have this strategic similarity (Cameron & Green, 2015). Both of them seek to fall in line with the societal demands of sustainability.
Contrast and Comparison of the Solutions and Alternatives
Comparison
The world business experiences change on a constant basis. As a result, the best leadership and strategic solution are to devise changes to the core internal and external environment of an enterprise with the foresight of the machinations and dynamics of the market. In this case, Spectrum Sunglass Company and Apple Inc. have been forced to make changes that are necessary to survive in the market. For example, Spectrum Sunglass Company is facing a possible revolt from BigMart; this is its biggest distributer that is insisting on adopting sustainable production policies and techniques. This stance has forced Spectrum Sunglass Company to consider adopting sustainable approaches to its core production or risk losing 30 percent of its source of revenue.
Similarly, Apple Inc. has led the major corporate sector companies into adopting green strategies such as recycling and other eco-friendly production, packaging, distribution and even marketing activities. To enable the company to reduce its carbon footprint, it has adopted a mass recycling policy. It targets getting the used gadgets such as phones and computers to be re-made for the market. This approach will ensure that less devises are disposed of into the environment. This also means a reduction in the pressure placed upon the raw materials used to manufacture these gadgets. The industrial production process also causes emissions into the atmosphere. Overall, Apple’s strategy for recycling its products meets its aim to reduce its emissions on the planet as well as adopting sustainable and acceptable business models that are consistent with the societal threshold expectation (Goetsch & Davis, 2014). Additionally, Apple also targets the increased approvals in the market. It will continue to dominate the market and, thus, enjoy massive sales to a significant market share that it dominates globally. This initiative does not show a downside to the business, its relationship with the market or relationship with its partners and other stakeholders. However, failure to implement these aspects will see the credit and support from the society and customers plummet. The loyalty to its products might be affected greatly if it does not meet the societal threshold of sustainability and join the clamor for combating global warming effects in the world.
As a result, both these companies are faced with the societal requirement or threshold for sustainability. This concept is massively popular among their current and potential customers. As a result, these firms choose to adopt these strategic approaches and ensure they reduce their carbon footprint.
Contrast
Spectrum Sunglass Company does not have the option of launching a large-scale recycling platform that would help its core need for raw materials in its production policy. This puts the company at a disadvantage. This is because the prices of the final products are influenced massively by the cost of production. Since the firms also want profitability margins, this pushes these pricing policies prohibitively high. On the other hand, recycling is a massive option for Apple Inc. It can incentivize its customers through purchase promotions to collect the used gadgets. These devices can then be re-manufactured into new products. However, the cost of such recycling is significantly low compared to making a new product from the raw materials. Additionally, it will reduce the strain on raw materials, reduce the firm’s carbon footprint and enhance its transition into a sustainable and eco-friendly franchise.
Spectrum Sunglass Company can adopt the decision to employ sustainability and eco-friendly approaches as the core of the changes to Apple Inc. at face value. However, the specifics vary from company to company because of the substantial and fundamental differences in the approaches, customer pool, raw materials as well as the external environment for such a market segment. For example, Apple operates in the communication technology sector. The turnover rate of technology is massively high. As a result, the firm needs to adapt to these transformations to keep its market share and stay ahead of the stiff competition offered by the major players as well as the emerging firms into the market. As a result, a solution can apply to the case study and the simulation companies (Richter et al., 2013). However, the particular implementation of such a plan depends on the core competencies of the company and its relationship with the external environment.
Comparison and Contrast of Strategies
Comparison
The common strategic approach between Spectrum Sunglass Company and Apple Inc. is the use of innovation and creativity to be successful in the market. These companies face a massive competition in the globalized market. This often results in market saturation. As a result, they have to develop new and innovative ways to differentiate their products among a myriad of options in the market. For example, Spectrum Sunglass Company has adopted sustainable aspects as well as eco-friendly policies in its production process to satisfy the needs of the customers to have a business that contributes to the conservation of the environment (McCarthy & Eastman, 2013). Although the transition to eco-friendly business models might be expensive, it makes economic sense in the long-term to make the pivot in policy and strategy in the market. It is an innovative approach to Spectrum Sunglass Company’s production. It helps it to differentiate its products in the market as “green” or “eco-friendly”. It is a massive differentiation to these companies that focus on the profit margin and quality of production. In the market dynamics, differentiation is crucial. It allows the customers to have clarity in making a choice. Since the societal mood and perceptions towards sustainability have improved because of the increased awareness, this transition allows Spectrum Sunglass Company to position itself strategically in the market to utilize this change in the society.
Similarly, Apple has implemented its recycling plan to ensure it is conscious of the environment in its business model and, thus, reduce its carbon footprint. The company’s core raw materials are the minerals it employs to make the computers or phones. Through recycling, Apple reduces its heavy use of these minerals. Therefore, this approach reduces the company’s exploitation of the natural environment. It is an innovative approach to ensure it is sustainable and eco-friendly and at the same time employ a creative strategy to reduce its costs of production and maximize its profits. At the same time, the company employs this approach to ensure it meets the new norms of sustainability in the corporate sector.
Contrast
The changes at Spectrum Sunglass Company occurred throughout the hierarchy of the firm. The strategy here was to establish the background and an enabling environment within the enterprise to allow for the implementation of these changes. Often, resistance to change is expected in organizations. This is especially because of the uncertainty of the changes and the structural and portfolio changes that might affect people’s positions within the business. Spectrum Sunglass Company targeted the top leadership first. This is a top-down transition into new approaches. The management is convinced of the need for change within the company to rally, maintain or expand the market share and eminently, to secure the services and infrastructure of BigMart in the distribution of its products (Frankland et al., 2013). The expectation here is that the leaders of the company will inspire a transformation in the mindset of the employees and steer these changes.
However, the changes at Apple do not affect the leadership; they are not enforced by the management failures or the needs of its partners. However, they are necessitated by the societal transformation and the external environment changes. The transformation in its production process is not dramatically upended like in the case of Spectrum Sunglass Company. Although its focus is on recycling, its core manufacturing process is still undergoing. Additionally, the gadgets with new technology and approaches cannot be designed from the used devices (Van der Voet, 2014). As a result, this method, although innovative, does not augur well with the constant changes experienced in the technology sector. As a result, it does not fit into the demands of the information technology industry of constant innovation and creativity in production.
Conclusion
Strategic approaches to sustainability have become a necessity in the current global market. As a result, innovation, creativity and environmental protection and green policies have become inseparable. This is demonstrated by the changes adopted by Spectrum Sunglass Company and Apple Inc. Although the individual application is different, sustainability has been described as a core business requirement if it is to succeed.
References
Cameron, E., & Green, M. (2015). Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Frankland, R., Mitchell, C. M., Ferguson, J. D., Sziklai, A. T., Verma, A. K., Popowski, J. E., & Sturgeon, D. H. (2013). U.S. Patent No. 8,484,111. Washington, DC: U.S. Patent and Trademark Office.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. person.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
McCarthy, C., & Eastman, D. (2013). Change management strategies for an effective EMR implementation. Himss.
Richter, R., Berger, U. E., Dullinger, S., Essl, F., Leitner, M., Smith, M., & Vogl, G. (2013). The spread of invasive ragweed: climate change, management and how to reduce allergy costs. Journal of Applied Ecology, 50(6), 1422-1430.
Van der Voet, J. (2014). The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. European Management Journal, 32(3), 373-382.
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