List and describe the three major R & D approaches for implementing strategies
List and describe the three major R & D approaches for implementing strategies
Introduction
Research and Development (R & D) is an important tool in the business strategy implementation process aimed at not only growing but improving a business as well. It is basically a venture in technology and future capabilities, and entails researching a given market and customer needs in order to create not only new but improved products, processes and services to match customer needs. As highlighted by David (2000, p.99), there are three major R & D approaches for implementing strategies. In view of this therefore, this paper intends to discuss the three approaches for implementing strategies.
Being the First Business Organization to Market Technological Products
One of the three major R & D approaches for implementing strategies is to actually be the first organization to market new technological products. According to Porter & Cunningham (2004, p.6), this particular approach is and has been a significant factor in enabling many business organizations to establish their dominant positions within a number of advanced markets. As an approach for implementing business strategies, working at being the first organization to market technological products often blows away any serious competition. As a result; other business organizations simply find it difficult to keep up. David (2012, p.122) however highlights that as much as it is glamorous and exciting approach, it may also be a dangerous one. This is in view of the fact that many companies, for instance, the famous General Electric, have succeeded using this particular approach, with many other pioneering companies failing as well.
Being a Creative or Innovative Imitator of Flourishing Products
A second major approach for implementing strategies is to be a creative and innovative imitator of thriving products. According to David (2012,p.124), this approach is often helpful in terms of enabling business organizations minimize not only risks but costs involved in start-ups.This particular approach often entails letting a given pioneer business organization to develop the original version of a given product and demonstrating that a market for the product indeed exists. Once this is done, laggard business organizations come up (develop) such similar products. The strategy, however, requires excellent research and development personnel alongside an outstanding marketing department.
Being a Low-Cost Manufacturer or Producer of Related Products but Less Costly Products
A third major approach for implementing strategies is to be a low-cost manufacturer or producer by mass-producing of related products but less costly products that are recently produced within a given market. As new products become accepted by customers, prices often become increasingly significant in the customers’ buying decision. This strategy however requires significant investment in terms of plant and equipments but fewer costs in research and development compared to the other aforementioned approaches. As highlighted by David (2012,p.127), one of the most recently noted trends relating to this particular approach is relaxing the secrecy veil whereby business companies, even key competitors, are joining forces to create new products, hence securing low-cost production. Collaboration among business companies is thus on the increase owing to rising competitive pressures, rising regulatory-related issues, increasing research costs as well as accelerated product development schedules.
Conclusion
As highlighted, it is evidently clear that research and development (R & D) is a significant means through which any business organization can achieve future growth through the initiating the development of new products/services or processes aimed at not only improving but also expanding their operations. The paper has generally listed and provided a discussion of the three major R & D approaches for implementing strategies.
Work Cited
David, Fred. Strategic Management Concepts: A Competitive Advantage Approach, Prentice Hall PTR, Pp.116-127, 2012
David, Fred. Instructors Resource Manual, Prentice Hall PTR, Pp.99-101, 2000
Porter, Alan & Cunningham, Scott. Tech Mining: Exploiting New Technologies for Competitive Advantage, John Wiley & Sons, Pp.6, 2004
