Business Strategy Long-Term Planning to Position

Question: Describe about the Business Strategy of Long-Term Planning to Position. Answer: Introduction The business strategy of a company is termed as a long-term planning to position itself uniquely in the competitive landscape of the industry through a sustainable competitive advantage. This report carries out the strategic analysis and evaluation of Rocket Internet by analyzing the resources and capabilities, threshold and dynamic capabilities, and VRIO analysis of the firm(Johnson, Scholes,and Whittington, 2009). 1. Companys Resources and Competences Resources and competences emphasize the strategic capabilities of Rocket Internet. Rocket Internet is one of the leading firms in the world for the largest rocket internet platform that creates, develops, and scales the business framework for the e-commerce companies or online businesses. It deploys physical (Physical lay-outs, start-ups investors, Kinnevik, JP Morgan, patents, designs, and database), financial (funds, balance sheet, cash flow, income statement, and suppliers funds statement), and human resources (MBA level graduates executives, executive entrepreneurs, managers, employees, suppliers, customers, and shareholders), and technological (computer system, internet system, and information technology)to attain a unique competitive advantage in the competitive industry(Hitt,Ireland, and Hoskisson, 2014). Rocket Internet uses technology, infrastructure, and process to develop a large rocket network of e-commerce companies or online businesses. The availability of skilled and talented workforce, multicultural management teams, specialized training schedules and learning programs, use of local management and global standards, and high performance working culture make the human resources valuable and enhance the performance standards of the company. By using the latest technologies, infrastructure network, and skills of the workforce, it creates a strong platform of e-commerce businesses through accessing the large e-commerce companies(Rocket Internet, 2014). (Source: Rocket Internet Company Report, 2014) On the other hand, the competences refer to the organizational skills and capabilities that are used to deploy the business resources through the technology, infrastructure, activities and processes of the company. The competences provide a sustainable competitive advantage to the firm in the competitive landscape of the industry. The competencies of Rocket Internet refers to target new business models, imitate them, high customer responsiveness, speed, efficiency, capacity to adapt, and innovation that provide the firm strategic advantage. It creates value through the transferring business skills, infrastructural support, internal incentive system, and independent business network(Alkhafaziand Nelson, 2013). The specialized training schedules, learning programs, high performance working culture, and e-learning studies assist to enhance the skills and abilities of the workforce.The ability of Rocket Internet to provide the high-end business solution to e-commerce companies and online businesses is more likely to provide a sustainable competitive advantage to the firm in the competitive industry. 2. Companys Distinct, Threshold and Dynamic Capabilities Rocket internet is one of the leading start-up incubator and venture capitalist firms which provide the largest rocket internet platform for the e-commerce companies and online businesses around the world. The company has dynamic, distinct, and threshold capabilities to attain the sustainable competitive advantage in the competitive global industry. The company is focused on sharing the largest possible share of e-commerce companies and online customer spending in the global markets. The dynamic capabilities of Rocket Internet includerocket network of e-commerce companies, highly specialized workforce, cross-cultural teams, technological infrastructure network, global access to online businesses, centralized business model, and high-end technological solution. It provides the high-end technological solution to the e-commerce companies and online businesses. The transferrable business skills, infrastructural support, global network connectivity, standardized master launch process, and proven business model enhance the strategic capability of the company to deliver the high-tech solutions to the e-commerce companies (Amazon, e-Bay, UBER, Grubhub, and Airbnb). It identifies the needs of the online customer spending, develops the business models, and scales-up the company. The firm has good financial (good capital investments and credit offering) and human resources (specialized and executive workforce, skilled and talented managers, assets, and properties)and techno logical infrastructure network(Johnson,Scholes, and Whittington, 2009). On the other hand, the distinct capabilities of Rocket internet assist the firm in attaining the sustainable competitive advantage in the competitive landscape of industry. It is the founder of rocket internet; first founded by Samwer Brothers(Johnson, Whittington, Scholes, Angwin, and Regner, 2014). It has powerful brand presence and unique patent and designs to deliver the high-end technological solution to the e-commerce companies or online customer spending. It has unparalleled experience in scaling the internet businesses at international level. It has highly structured practices, deep technical and operational expertise, and centralized IP with regional execution.It has a centralized business model which covers the strategies, activities, and decisions shaped by the management of headquarter. It is known for high efficiency, effectiveness, and speed for launching the new business models(Robertson and Caldart, 2009). It has a standardized recruitment procedure of HR management t eam to select the skilled, talented and experienced candidates. It also has an intense entrepreneurship culture including the long working hours, busier schedules, high job pressure, and little job security. It also comprises global infrastructure development system, centralized distribution network, and global venture development team for developing the business ventures on the international scale. The threshold capabilities emphasize the ability of Rocket Internet to achieve parity with the competitors and to compete in the given market by achieving the high customer responsiveness. The threshold competences of Rocket Internet include specialize in IT software and programming, unique patent and design, web design skills for product development. It uses the latest technological tools, web programming, software, and IT tools to access the global online businesses across the globe(Kumar, 2010). It has the ability of cloning on others ideas and specialization to execute them in the suitable markets. The firm has more than 250 specialists to deal with different sections of operations. It has assisted to develop, create, and scale the business model for 100 start-ups e-commerce companies and is currently active in 50 e-commerce portfolio companies. It has been operating a large rocket internet network of 25 global international rocket offices. Rocket Internet has a strong financial backup, such as JP Morgan, Kinnevik.It also has 750 employees in Rocket Internet office and 15,000 employees in Rocket internet companies. Task 3 VRIO Analysis VRIO analysis is an important strategic framework that can be used to analyze the strategic positioning of Rocket Internet by identifying the resource capabilities and competences of the firm(Jurevicius, 2013). VRIO refers to valuable, rare, imitate and organized resources or elements that can be used to attain a sustainable competitive advantage in the relevant industry. Different types of physical, human, financial, technological, and organizational resources are deployed by Rocket Internet to attain the strategic advantage in the competitive landscape of the industry. Speed, efficiency, scalability, stability, and security are the key principles for building technology at Rocket Internet. Excellent leadership, high performance working culture, good brand portfolio, teamwork, coordinated and well managed activities, strong financial base and innovative ideas are some organizational disciplines of Rocket Internet that make the firm to attain a competitive advantage in the global ind ustry(Frynas and Mellahi, 2015). (Source: VRIO Framework explained: SMI, 2013) The skilled, technical and experienced human resources have also potential to create a sustainable competitive advantage for the firm. Rocket Internet has a team of functional experts, regional leaders, and entrepreneurs that enhance its ability to global access by targeting the large e-commerce companies(Hill and Jones, 2012).The multitasking workforce, high performance working culture, cross-cultural management teams, continuous training and learning facilities, setting performance standards and performance appreciation and reward system make the human resources valuable to provide the firm a sustainable competitive advantage.The distinct capabilities, dynamic capabilities, and threshold capabilities assists the firm to attaina sustainable competitive advantage. The standardized launching system, innovative business model, internal incentive system, high-end technological solution, and rocket internet network of the e-commerce companies provide the firm the competitive advantage in the competitive industry(Grant, Hackney, and Edgar, 2010). Technical expertise, operational excellence, skilled workforce, technological inventions, wide use of informational technology, and high structured business practices provide the firm a sustainable competitive advantage in the dynamic industry. The predictable and repeatable technological resources, strategic partnerships and agreements, and consistent return across portfolio vintages provide the firm the strategic advantage in the competitive industry. High customer responsiveness and retention, high speed, capacity to adapt, innovation, efficiency, and effectiveness assist the firm to attain a sustainable competitive advantage. The organized and imitate resources provide the firm temporary competitive advantage. The worldwide connectivity, unique patent and latest designs, web programming and apps, IT tools, marketing channels, CRM tools, and data warehousing provide the firm strategic advantage to deliver the complete business solution to the online business firms(Thomsonand Martin, 2010). Conclusion From the above strategic analysis and evaluation, it can be concluded that Rocket Internet is one of the fastest growing venture capital firmsin the world that provides a business platform for the online businesses or e-commerce companies. From the VRIO analysis, it has been concluded that the company has strong ability to attain a sustainable competitive advantage in the relevant competitive industry by utilizing the resources, competencies, skills, and talents of the workforce.Along with this, the threshold, distinct, and dynamic capabilities provide its strategic advantage in the competitive industry. References Alkhafazi, A., and Nelson, A. R. 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