Innovation Business Education in Emerging Markets

Question: Discuss about theInnovation for Business Education in Emerging Markets. Answer: Introduction Variations make things beautiful and interesting. The idea not only applies in every aspects of life and that includes business as well. Once a businessperson makes innovation and brings positive changes, in the business, the business will soar high. Companies bring innovation for various reasons. Some does not want the business to be monotonous, while some want to rectify past failures and mistakes (Amit, Zott, 2012). However, the path of innovation is not easy. The company has to face certain issues and barriers. The company has to overcome the issues and brings in the changes in the organization. It is important that the organizations plan the innovation intelligently (Schaltegger, Ldeke-Freund, Hansen, 2012). If the innovation is brought after some problems faced by the company, the organization should take extra care and before any innovation in the organization (Onetti, Zucchella, Jones, McDougall-Covin, 2012). The following report will mainly evaluate the functions of Toyota in the art of New Zealand. It will look into the changes brought into by Toyota, the innovation model followed by Toyota. The barriers that came in the path of the innovation and the process of overcoming the issues will also be studied. The write-up will help the readers in knowing the importance of innovation and the issues that will come in the path of innovation. Issues that will Influence Performance Toyota has been facing issues regarding the recall from the New Zealand market ("About Toyota", 2016). In the year 2015, 420 vehicles were recalled from the market, which included Voltz and Pronard models that were manufactured in the year 2001 and 2004 ("Precautionary recalls announced for Toyota vehicles", 2016). The model had to be recalled mainly because of the faulty airbags. The models were dated to be recalled in the year 2013. However, Toyota stopped the certain models when they found there are still chances of recall due to the same reason. The vehicles had to recall mainly because of the faulty spiral cable, seat rail, steering column bracket for the new vehicles that have been introduced in the market by Toyota. The new models that were affected are the RAV4, Prado, Gulux, Belta, Ist, Ractis, Vitz and Yaris. Toyota Ractis is one of the imported models that are being affected due to the faulty parts ("Toyota New Zealand issues recall for 420 vehicles - Business - NZ Herald News", 2016). The part that is affected in the imported models is the drain outlet. Toyota has taken measures to give the customers proper services so that do not have to face any issue in the future. Toyota has understood if they had evaluated the problems beforehand and has taken measures that do not have to recall any of the vehicles. However, to handle the customers, Toyota has sent the notification letter to the customers and advised them to contact the dealer. The repair will be free for the customers and will be done within duration of one to three hours. Innovation to Tackle the Issues As Toyota has been facing issues, it is time for the company to implement innovations in their models as well as their business. The electric car is one of the famous ventures of Toyota that it could implement in New Zealand. The models of Toyota has been facing issues and had to be recalled due to the faulty parts from the market of New Zealand. Toyota has already made a bad impression on the minds of the people due to the faulty parts in the models for which they had to recall the cars. The electric cars will be environmental friendly and will help the company to maintain their environmental sustainability. To implement the innovation, Tuckers innovation model will help the organization to implement the products in a better manner. Figure 1: Tuckers innovation model (Source: Tucker, 2001) The tuckers innovation model talks about the fact that innovation is a continuous process. The model talks about eight building blocks of innovation. The blocks are: Innovation strategy and definition Leading and championing innovation Resource allocation Developing innovation skills Management rewards and metrics Cultivating the culture Involving the whole enterprise Collaborating with the customers and stakeholders The electric cars will be the innovation strategy for the change that Toyota will be making in the market. However, if Toyota wants to launch a new model, the company should know the techniques and should be a champion in that innovation. To implementation the new types of car, the resources should be allocated well. Toyota needed to hire people who know the mechanism well as these kinds of people will help the organization to innovate the new products. The employees need to be rewarded once the new product will launched in the market (Halme, Lindeman, Linna, 2012). The management should reward the employees who will be the main force behind the work and they should. Innovation the product and launching it in the market will not help the organization, they should keep a constant follow up on the performance of the products in the market (Bock, Opsahl, George, Gann, 2012). The entire organization should be involved in the launch of the electric car. The employees who are not directl y involved in the project should take part in the innovation so that they are regularly updated with the happenings in the company (Boons, Ldeke-Freund, 2013). Educating the entire population of the organization will help the organization for facing the future challenges. To launch a new product, the issues that will rise are in the financial part (Amit, Zott, 2012). The company will need interested stakeholders who will help the organization in the launching of the car. The new car will help in attracting the customers who have drifted away due to the faulty car parts in the Toyota models. The electric car will be help in the sustainability of the environment, as it will not use petrol. It is expected that the people who are living in the country will accept it even after the issues if faulty parts. Implementation of the Innovation The implementation of the new innovation of the electric car model in the New Zealand market was not that easy as the customers were not familiar with this type of vehicle so there was some type of risks. The company Toyota has entered the marketed with the premium quality luxurious electric vehicles and standard range of vehicles. The main advantage that the company Toyota possessed is a house of best expertise in the Research and Development laboratories. The labs have developed powerful batteries for the cars and latest re charging technology, which is a very important thing that will help the company to gather a large market share for the product (Alon, Jones, McIntyre, 2013). The main motive of Toyota is to make this car more popular as there as there will be lower pressure on the conventional resources like the fossil fuel. The pollution emitted by the cars will also be minimized in the process. The company Toyota to make the use of the electric cars common among people has de cided on building a network of charging stations around the world. The recharge will help to deliver charge of 200 miles for half an hour (Toda, Salazar, SaitoÃÅ'„, 2013). The main reason for this is that the there are charging stations that take several hours to charge. The customer who has purchased the product was wooed by this innovation, as there was no need for them to visit the gas station. The cost of recharging the car was just a few dollars. The electric cars also needed a single gear for driving at all type of speeds, which was undoubtedly powerful, and surprising (Clausen, Ten Hompel, Meier, 2014). There is a need of gasoline and there is no emitting of polluted gases. It is expected that the whole process of manufacturing until the time of the disposal the electric cars they tend to produce 40% lesser carbon ozone and carbon dioxide than that of the conventional cars. Since the company has come with an innovative model, there is a greater possibility that it wo uld be receiving subsidies by the government due to their innovative idea and promotion (Toda, Salazar, SaitoÃÅ'„, 2013). The company has studied from the market research that New Zealand market has a huge demand for the electric cars. There is a no need for the customers to make huge maintenance cost (Tellis, 2013). There is a no need for the customers to lubricate the engine from time to time so that the engine functions properly. Identification of the Barriers in Path of Innovation: The innovation by Toyota was not that easy as there are a number of barriers that the company has to confront in order to achieve success in the New Zealand market. The company undoubtedly possessed excellent innovation methods yet it was difficult for it to make a position in the market of electric cars (Caldwell, 2012). Some of the renowned branded car companies like General Motors, BMW, Mercedez Benz, Ford and Tesla Motors dominate the electric car market. The expertise that Toyota Company had was not same as that of rival companies. This has made it difficult to market the products to the customers (Michelini, 2012). Apart from the designing the model of the electric cars, there is a need for the development of the electric fuelling stations in almost in all the famous locations and the remote places where the customers drive with their cars. When the customers they drive for a long trip and there is no charge in the car a lack of fuel station will keep the passenger stranded (Ferrara LaMeau, 2012). The electric cars are not much in demand by the younger population as they are more fascinated by the fuel based powered engines. It is expected by them that the use of the electric cars have lesser performance than that of the fuel-enriched cars (Ferrara LaMeau, 2012). The electric cars would not give the speed that is provided by the fuel-based engines. The electric cars are only based on the electricity as a source of power. There is a need for the customers to make their decision of purchases prior to making the investment. The electricity is not freely available but there is some cost that is incurred by the purchasers on electricity. The innovation of the electric cars is undoubtedly great but the mileage that the car provides is not that great. The electric cars have a limited range and speed. The maximum speed ranges from 50 to 100 miles and there is a need to recharge them again and again. Driving for the purpose of long distances is no suitable for this type of cars (McCrorey, 2012). There is a need for overcoming this setback. The recharge time is also longer in the electric vehicle. The electric cars take 4 to 6 hours to recharge fully unlike the fuel cars that recharges within a couple of minutes from the time of recharge. Thus, with innovation of the electric car model, the company Toyota faces a number of innovations disadvantage. Overcoming the Barriers The company Toyota has a number of barriers that they have to overcome. The company needs to hire excellent expertise men so that they are able get the maximum advantage from the innovation. Hiring of the expertise can be done when they are given a much higher salary than that of the other competitor organization like the company General Motors, Ford and BMW. The company Toyota should not only invest in the manufacturing of the cars but also invest in the building up of the fuel station in a number of locations. The customers will then be eager to buy this car but the only fear that they posses is that is they run out of charge where they get to charge their electric cars. The company Toyota should treat developing the Electric stations and electric cars complementary so that they are able to attract more number of customers for their product. The main aim of the company Toyota is to attract the demand of the younger population of New Zealand as they have immense craze for different models of the cars but the only thing that the company should do is to increase the power of the electric cars as this the factor that the young customers they look out for. The battery of the cars must be powerful like that of the fuel-efficient cars (May, 2012). The electric cars manufactured by Toyota is based only on electricity which is a disadvantage for the company as they would be getting customers who prefer only electric cars. The electric cars should also have the option of fuel. This will help in attracting all range of customers. The availability of electricity is not always certain so keeping the availability of both the energy-based option will be able to give more number of customers. This would satisfy the all type of customer demand. The company Toyota should collaborate with the government so that they are able to provide efficient cars (McCrorey, 2012). The cars manufactured will have the government sanction and this will help in increasing the demand of the customers. The authenticity by the government is a guarantee, which the customers consider in buying the product (Macaulay, 2012). There is a need for the company Toyota to set up after sales services for the cars sold. The service centers should be available in all the main cities of New Zealand. There should be provision of free services for the whole one year after the purchase of the electric services. All sorts of damage need to be covered under the after sales service of the customers. Conclusion Innovation is an integral part of the business. There is a need for all company to understand that with innovation to gain success. Incorporating innovation in business is very important, as there is a need for the company is change as per the demand of the customers and the changing environment. The company Toyota before the implementation of innovation in the product must consider the review of the customers. The company Toyota had a very rough journey in New Zealand as there are feedbacks from the customers regarding the faulty steering, seat rail, spiral cable in many of the cars. This has resulted in the loss of a large market share in New Zealand. The company Toyota also wanted to revive itself in the New Zealand car market so they have come up with the strategy of incorporating the Tucker innovation model in the manufacturing of the electric car. The innovation model will be able to help in the efficient allocation of the resources for the company Toyota. This would help in co llaborating the stakeholders and the customers. 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