To increase the company’s profitability, my group will leverage some of our competencies into mobile markets by developing a mobile version of our interface design. Leveraging is related to innovation processes of “searching for, evaluating, and exploiting new market opportunities for new or existing technologies” (Keinz & Marhold, 2021, p. 197). Since the number of people using mobile devices grows, creating a mobile version of the interface design will enhance the firm resources and capabilities and expand the business in a new field. Besides, we can use our software source code to develop the customer data collection aspect of customer relations management (CRM) to enter the analytics industry.
The chosen strategy is the best strategy for our business because it allows the company to maximize returns by investing in different fields. Since the company develops premium software products, moving into a mobile industry will be new but similar to the existing industry. Our company’s core competencies are acquiring new customers and generating customer knowledge through the collection of customer data. If we leverage these competencies, the company will enter the analytics industry successfully and increase its profits.
Moreover, this scenario is the best because it is associated with minimal risks and financial losses. Sharing resources and transferring knowledge requires time and money, and there is no assurance that such investments will be justified in the future. If the company shares some of its assets, it will need to substitute these assets with the new ones, investing additional money in both business fields. However, if it develops a new product, the investments will be minimal because the existing team can work on this product development, and the losses will be minimal. The company will increase its competitiveness and provide a new product to the customer, achieving extra profits and expanding its industry.
Reference
Keinz, P., & Marhold, K. (2021). Technological competence leveraging projects via intermediaries: Viable means to outbond open innovation and mediated capability building? International Journal of Project Management, 39, 196-208. Web.