Why Innovators Need to Develop Their Own Strategy to Reach the Market

Innovators are at the forefront of creating groundbreaking solutions, but their journey from ideation to market success is fraught with challenges. Developing a tailored strategy is critical to navigating this complex process. By understanding the principles of strategic planning and emergent strategies, innovators can position themselves effectively in competitive markets.

Strategic Planning vs. Emergent Strategy

As highlighted by Mintzberg (1987), strategy can manifest through deliberate planning or emerge organically through patterns of decisions. Strategic planning involves setting clear objectives, analyzing resources, and envisioning the desired outcomes. This approach is particularly useful for innovators who need to secure funding or align stakeholders behind a unified vision. The structured process of prescriptive strategy involves steps such as:

1. Environmental Analysis: Understanding market needs, competition, and external factors.
2. Resource Analysis: Assessing available technologies, funding, and human capital.
3. Vision and Objectives: Defining the core purpose and measurable goals.
4. Strategic Options: Exploring multiple pathways to achieve objectives.
5. Implementation: Selecting and executing the most viable strategy.
6. Monitoring and Control: Continuously tracking progress and adjusting as needed.

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Conversely, emergent strategies arise from adaptive decision-making in response to unforeseen challenges and opportunities. For innovators, this means embracing flexibility and learning from early market feedback. The realization of strategy often combines both deliberate and emergent elements, as depicted in the interaction between intended, deliberate, and emergent strategies.

The Role of Internationalization for Innovators

For innovators aiming to expand globally, developing a strategy tailored to international markets is crucial. Companies internationalize to:

• Expand customer bases and diversify revenue streams.
• Tap into high-growth, less competitive markets.
• Gain insights into new products, services, and business approaches.
• Follow key customers who have entered global markets.
• Access flexible production structures and lower-cost factors of production.
• Confront international competitors effectively.

These motives underscore the importance of crafting strategies that account for the unique demands and opportunities of global markets. For instance, an innovator entering emerging economies might prioritize cost efficiency and local partnerships, while targeting developed markets could focus on advanced product features and branding.

Mintzberg’s Five Ps of Strategy: A Guiding Framework

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Henry Mintzberg’s concept of the Five Ps—Plan, Ploy, Pattern, Position, and Perspective—offers a comprehensive lens for innovators to develop their strategies:

1. Plan: A clear roadmap for product development, market entry, and scaling.
2. Ploy: Strategic maneuvers to outsmart competitors, such as securing intellectual property rights.
3. Pattern: Identifying consistent actions that have led to success and leveraging them.
4. Position: Establishing a unique value proposition within the market.
5. Perspective: Aligning organizational culture and vision with market demands.

By applying these dimensions, innovators can ensure their strategies are robust and adaptable.

Key Takeaways for Innovators

1. Balance Planning and Adaptability: Use strategic planning to set clear objectives while remaining open to emergent strategies that leverage real-time insights.
2. Focus on Market Fit: Conduct thorough research to align the innovation with market needs and customer preferences.
3. Leverage Internationalization: Develop strategies to access global markets, balancing local adaptation with scalability.
4. Adopt Mintzberg’s Framework: Use the Five Ps to create a holistic and actionable strategy.
5. Continuous Monitoring: Implement systems for tracking progress and iterating based on performance data.

Conclusion

For innovators, developing a bespoke strategy is not just an option but a necessity. By understanding the interplay of deliberate and emergent strategies, leveraging motives for internationalization, and applying frameworks like Mintzberg’s Five Ps, innovators can navigate the complexities of market entry and achieve sustainable success.

References

• Mintzberg, H. (1987). “The Strategy Concept I: Five Ps for Strategy.” California Management Review, 30(1), 11-24.
• Lynch, R. (2019). Strategic Management.
• Cavusgil, S. T., et al. (2017). International Business: The New Realities. Pearson.