Running head: INNOVATION AND SUSTAINABILITY 1

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Institution:
Innovation And Sustainability
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Question 1

Introduction

Leadership and strategy conceptualization are essential procedures for many companies

and the origin of their competitive chances. For a sustainable organization, a strategic authority

and evaluation of the internal dealings of a firm are pivotal. As the interior and the external

aspects of a company change, strategists are needed to spot and explain these changes to protect

the firm from adverse effects to secure a competitive advantage among rivals. The strategies

formulated are essential in directing and creating a vision for the corporation.

Apple leadership

Apple inc is an American multination firm that deals with the production and sale of

smartphones, laptops, smartwatches, computers, and other related gadgets. It operates in various

nations with devices like mac, iPad, apple watch, Apple T.V., iPhone, headphones, and AirPods.

Thanks to strategic leadership, the company has experienced significant growth in the past two

decades. The investment analyst identified innovation, brand strength, premium pricing, and

supply chain management as the critical aspects of the firm's competitive advantage. According

to a report written by a brand consultancy firm, apple was the leading global brand preceding

Google, IBM, and Coca-Cola in 2017. the interrelationship between products allows customers

to buy or shift from one product to another. They use the same software, applications, and

operating system, so it becomes a default choice for customers when they want to buy another

device.
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Apple also has a well-established recognition, and it is committed to innovation by

creating and selling new products. The production of items that complement each other has

increased customer loyalty (Linton, 2018). The company has a joint and robust supply chain with

a system of suppliers and control over the manufacturing process with a lot of knowledge and

resources. The company also ensures consistent prices across all markets by minimizing

discounts to wholesalers, and their high prices are perceived to be equivalent to the value of their

products. It uses these advantages over its competitors to retain a higher market share than its

rivals. These strategies are sustainable because they impact society and the environment

positively.

Question two

With the increase in diseases, people opt to go for foods that are without chemicals and

pesticides. According to data drawn, in 2019, organic food comprised of 5.8% 0f all food sales in

the U.S. ("Organic share of total food sales in the U.S., 2019," n.d.), and it contributed 85 billion

USD in 2020. According to the organic report, the entry of the coronavirus in 2020 forced people

to make food at home, and with the closure of restaurants and fast food joints, consumers were

left with no choice but to bake bread and cook food at home. This situation increased the demand

for organic groceries and other organic foods.

Organic trade association reported a double-digit annual increase in demand for organic

foods since the 1990s. Organic foods have a 75 percent household penetration in the market. The

current generation is well versed with health concerns demanding a healthy lifestyle and foods

also transparency on the food source. The organic industry has experienced a higher growth rate

than other food vendors as the demand for healthy foods and safe sources increases. However,

there is competition from other food vendors. The industry faces the following competitive

forces:

 The threat for substitute products: Other companies offer the same products,

although not organic, at lower prices and easy accessibility. Walmart also introduced

organic food on their sores at very competitive prices.

 Rivalry among competitive sellers: organic food has become a health-conscious

trend, and every food seller wants to capitalize on the idea. Consequently, more

retailers are introducing the organic foods segment in their grocery section.

 Potential new entrants: new entrants threaten to bring price competition which

might affect the pricing strategy.

 Buyers: buyers are willing to pay more if the quality of the product is known and

guaranteed.

 Determinants of supplier power: many farmers do not grow organic products,

making the products' supply inadequate to meet the demand. It is also costly and

challenging to move to organic products fully.

Question 3

Best buy is the largest electronic seller in the United States and had a revenue of almost

50 billion USD in 2013. The firm faces pricing competition from its close rivals such as Target,

Walmart, Costco, and Sam's club, but it has a reputation for excellent customer service.

Customers also enjoy their in-store visit because of the display of demonstration models in pc

monitors and other media players. Their tech support team also offers customer support by

offering installation services that customers value.

Best buy is neither a low-cost nor best-cost company, but it employs differentiation to

gain a competitive advantage against its competitors. As of 2012, the company used a low-cost

strategy to increase sales, but it has focused on its customers with time. It uses a customer-

oriented strategy by providing end-to-end services to customers, earning the firm customers'

loyalty. The firm has also embraced the use of omnichannel to increase customers buying

experience and satisfaction where they can order online, pick at a store or buy online in-store.

Best buy should therefore increase its presence online to meet a larger market and

increase sales. Even with a considerable market share, there is a threat from counterfeit

producers who produce high-quality products at relatively low prices. In addition, there is intense

competition from online and physical stores; hence best buy should not be ignorant of

competitors' strategies lest it lose its market share. It should also be aware of changes in

consumer spending patterns and behaviors to prepare for any retail apocalypse.
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Question 4

Every business operation in society uses societal environment and resources which oblige

them to contribute towards healthy and sustainable development by providing social,

environmental and economic benefits to the society. For this reason, dell has committed to

operating its business in an environmentally sustainable way. Some of the programs and

guidelines that assist the company in achieving its goals and vision of a sustainable environment

while still remaining relevant, innovative and profitable include:

 Environment design is at the heart of every step of product creation

 Manufacturing products in a way that reduces the environmental effects help them

reduce their impact

 They centre on technologies that can resolve the challenges of climate change

 The company maximizes the use of renewable energy and resources and utilize

their resources optimally to avoid wastage

 They advocate recycling electronic products and embrace waste management by

use of green packing

A company that offers profitable and environmentally sustainable products with climate

change in mind will likely attain 18 percent higher returns on investment (ROI). Consumers are

drawn to socially responsible producers and tend to trust them more (Servera-Francés &

Piqueras-Tomás, 2019). Therefore, Dell can remain profitable and provide environmental

sustainability through its policies.

References

Linton, I. (2018). What Is Apple’s Competitive Advantage in Its Industry? Retrieved from

Bizfluent website: https://bizfluent.com/info-8734236-apples-competitive-advantage-

industry.html

Organic share of total food sales in the U.S., 2019. (n.d.). Retrieved from Statista website:

https://www.statista.com/statistics/244393/share-of-organic-sales-in-the-united-states/

Servera-Francés, D., & Piqueras-Tomás, L. (2019). The Effects of Corporate Social

Responsibility on Consumer Loyalty through Consumer Perceived Value. Economic

Research-Ekonomska Istraživanja, 32(1), 66–84.

https://doi.org/10.1080/1331677x.2018.1547202