Discuss about the new and innovative product that can help in improving the business of Shine Beauty.
Innovation and business development is an important aspect that needs to be considered in an organisation. Organisations need to mitigate the important issues in business by considering innovative approaches that are essential for the development of a market. According to Avital et al. (2014), innovation assists in developing the market and providing a competitive advantage in the business. It helps in enhancing the production and increases the level of satisfaction of the companies. The report focuses on the innovation model that can be adopted by Shine Beauty so that it can provide proper choice of cosmetics for the customers. The developed product in focus is the Fx Smart Mirror that can help customers to choose their preferred cosmetic of their choice.
It is important for every organisation to maintain sustainability in the business. Without sustainability, organisations cannot gain the trust of the community. Therefore, the innovation needs to be made keeping in mind the sustainability (Batra & Keller, 2016). The idea generated can be provided to Shine Beauty, can help in maintaining such sustainability. The idea of Fx Smart Mirror can help the company attract customers. Customers can try on the customers by using the smart mirror without actually applying it on the face. The uniqueness of the product is that it can be used like smart phone and the customers can see the choice of cosmetics that appear after sliding instantly as to whether it suits their requirement. It can help in analysing the face and suggest suitable cosmetics required for the face. Therefore, Shine Beauty had aimed at customer satisfaction and utilised a product that can be used in a manner that is identical to the use of smart phones.
The new idea adopted by Shine Beauty can help in the continuous development of the company (King & Baatartogtokh, 2015). The basis of the innovative strategy is the need of the customers and the manner in which the constraints can be solved. One of the constraints of the product is the fact that it is large. Unlike pocket phones, the smart mirror cannot be portable. Therefore, customers need to visit the physical stores so that they can apply the use of makeup. At the same time, the cost of the product is expensive. The innovation can help customers to identify from a wide range of products that are available in the market. The smart mirror can help in the development of market value and ensure that the innovated product can provide the customers with the ultimate satisfaction that exists in the market. It can be said that the smart mirror can help a business to develop and at the same time ensure that the products are continuously innovated. The smart mirror can be used in beauty salon
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Key Partners · Investors · Advertisers |
Key Activities · Purchase of raw materials · Consumer service through the identification of the needs of the customers |
Value Propositions · Competitive pricing · Various choice of cosmetics · Broad range of promotions to attain customer attention |
Consumer Relationships · Identification and the segmentation of the customers · Consumer satisfaction · Personalisation |
|
Key Resources · Brand · Ensuring product availability in the market |
Channels · Websites |
Consumer Segments · Massive market for fashionable people · Beauty salons · Households |
|
|
Cost Structures · Purchase of artificial intelligence · Advertising and marketing · Salaries |
Revenue Streams · Contribution from the customers · Promotion of the product |
Table 1: Business model canvas
(Source: Osterwalder & Pigneur, 2013)
Problem
The problems that Shine Beauty may face can be comprised of the customers. One of the biggest challenges that the company may face is to convince the customers about the usefulness of the product. According to Kleinknecht (2016), most of the customers may be old school and due to this, they may prefer to have physical evidence regarding the purchase of the products. The managers of Shine Beauty need to be aware of the responses they may receive particularly from the older generation. Hence, the target market can be narrowed down to the fashionable youth capable of using smart phones and have a leisure time while using the product. The reason behind the occurrence of this particular issue is that the improper marketing and promotion of the products (Lusch & Nambisan, 2015). The reputation of Shine Beauty had taken a downward turn in the market and it is important to identify the reason behind the fall so that the product may be promoted in a proper manner.
Another problem that can be mitigated by the application of the smart mirror is the fact that the customers can apply the make-up and remove it in a virtual manner. Unlike the application of cosmetics in a manual manner, the application of the smart mirror can provide customers with the choice of identifying the best make-up that can be suitable for the skin (Osterwalder et al., 2014). Hence, testing the make-up before applying it can act as a means of innovation that can be applied. Shine Beauty can develop the regular mirrors and ensure that the application of the smart mirror can help the company to gain more customer base.
Hence, the adoption of disruptive innovative method can help in increasing the reputation of the company and ensure that Shine Beauty regain their lost status in the market. Dawes and Nenycz-Thiel (2014) stated that the input of artificial intelligence in the smart mirror could help it control the functioning. The customers can use the mirror in a dual manner that comprise of the basic use of the mirror and the smart use. The artificial intelligence can suggest the best outfit that can suit the customers. Therefore, it can be said that excess talented resources is necessary for Shine Beauty so that it can implement the disruptive innovation tactics. Therefore, the plan needs to be executed properly for the promotion of the product (Newman, Wachter & White, 2018).
Shine Beauty need to resolve these issues as soon as possible so that it can try to maintain its reputation in the business. For this, it can be said that Shine Beauty, can use a proper promotional strategy so that smooth functioning of the production can take place. At the same time, the risk factors that may be encountered by the organisations also need to be taken into account (Thomsen, 2018). The risk factors in this case involve the development of the business so that it can align itself with the changes in the market. Yan et al. (2018) stated that effective management could help companies to mitigate any type of threats that exists in the market. Therefore, Shine Beauty needs to adopt proper managerial skills so that it can try to be competitive with the competitors (Serrat, 2017).
Benefits
One of the benefits that can be obtained from the manufacturing of the product is that the development of the artificial intelligence can take place. This can help in enhancing any new business ideas that can be used in the future. At the same time, the capabilities of Shine Beauty can be analysed and the manner in which it can develop itself in the market can be identified. According to Porter and Heppelmann (2014), the demands of the people can be met by strengthening the current capability and ensuring that the consistency in the workforce is maintained. Apart from the benefits of understanding the capabilities of the companies, Shine Beauty can also measure the loyalty of the customers (Tanaka et al., 2017). The smart mirror can help in the effective development of the organisation and can improve the organisation in the eyes of the customers. Apart from a few constraints, the development of the product can help Shine Beauty address the needs of the fashion sense of the customers (Pappas et al., 2016).
In the case of the development of the smart mirror, it is essential that the constraints regarding the development be identified. As mentioned earlier, the constraints are basic and can be mitigated with proper managing techniques (Kogan et al., 2017). Another benefit that can be received from the development of the smart mirror is that people will be encouraged to visit the physical stores. Joyce and Paquin (2016) are of the opinion that with the development of online purchasing, the visit to the physical stores have ceased. Hence, the smart mirrors can compel the people to visit the stores so that they can admire the products and purchase it from the stores.
Strategic responses
The strategic response that Shine Beauty needs to formulate is the identification of the features that cannot be implemented in the product. For example, the size of the smart mirror is large therefore; it cannot be fit in the pockets of the customers (Tukker et al., 2017). This can be a challenging factor for Shine Beauty as the company need to shorten the size so that extra cost of adding software can be reduced. Therefore, the financial condition of the company can be maintained and Shine Beauty can use it to develop other innovative products. More technologies can be input so that the product can be developed further. This can also help in addressing the needs of the customers and ensure that the success of the company and the product are enhanced (Porter & Heppelmann, 2015). The development of the target market can help Shine Beauty to focus on the exact needs of the customers and develop the products accordingly. A SWOT analysis can be provided to analyse the responses further
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Strength · Smart and innovative product · Assists in choosing the varieties of cosmetics |
Weakness · Larger size · Financial instability |
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Opportunity · Provide scope of conducting effective make-up · Can become a household application in the future |
Threat · Threat from the competitors · Lack of ability to convince the old school customers |
Table 2: SWOT Analysis
(Source: Thananuraksakul, 2018)
Option analysis of the project
The operational analysis can be done based on the financial analysis of the innovation process that is adopted. The project options need to consider the development of the innovative process and its application in the first two years of its production in the industry.
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Project option 1: Do Nothing |
Project option 2: Utilise |
Project option 3: Do Nothing |
|
|
Analysis Period (years) |
Year 1 |
Year 2 |
Year 3 |
|
Capital Costs ($m) |
$0 |
$0 |
$0 |
|
Output Costs ($m) |
$100 |
$100 |
$50 |
|
Present Value of Benefits ($m) |
$50 |
$80 |
$67 |
|
Present Value of Costs ($m) |
$45 |
$90 |
$70 |
|
Benefit Cost Ratio |
3:2 |
4:5 |
2:1 |
|
Net Present Value ($m) |
$78 |
$100 |
$45 |
|
Intangible costs / benefits (e.g. small, med., large) |
$10 |
$10 |
$10 |
|
Distributional impacts (e.g. small, med., large) |
$40 |
$60 |
$50 |
|
… |
|||
|
Preferred option |
Do nothing |
Utilise |
Do nothing |
Table 2: Calculation
(Source: Created by author)
Recommended solution and feasibility
After the analysis of the innovative product, it can be said that the feasibility need to be considered based on the value proposition of the products. Steps need to be undertaken so that the continuous innovation of the product can take place. Shine Beauty need to ensure that the product remains unique with a few changes such as reducing the size of the mirror by trying to incorporating the innovation in the hand mirrors that are used. One of the recommendations that need to be considered is the fact that the product need to be smaller. This can help Shine Beauty to sell the cosmetics to the customers.
The deliverability of the product needs to be done with the help of social media. A direct delivery of the product can be done to the customers after the purchase the product via any online source or from the physical stores that sell electronic equipments. The deliverability can be associated with the promotion of the products and the manner in which the customers can be able to be informed about the product. The target customers can be sorted and with the application of social media searching, the customers can be provided with an opportunity to identify the product.
Conclusion
Therefore, it can be concluded that Shine Beauty hopes to gain back the popularity of the company by applying the use of smart mirror in the company. The innovative process can help in satisfying the customers and ensure that they get the proper exposure while implementing technical changes in the company. The changes in the company and the adoption of the smart mirror can help Shine Beauty to solve any problem related to the adoption of innovative practises in the company.
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