Innovation And Sustainability For Business Growth – A Case Study Of Australia Beauty Clinic

Benefits of Innovation and Sustainability of Organisations

Discuss about the Designing Business Models and Objects.

In the modern world, innovation is necessary so that business organisations can remain competitive in the market. The important issues that exist in an organisation need to be mitigated so that it can provide an innovative approach for the development of the business market. The report focuses on the development of a smart mirror that can be used to choose between cosmetics. Customers can use the smart mirror to ensure that proper and suitable cosmetics are purchased so that they can satisfy their needs and demands. The uniqueness of the smart mirror is that it can help in the development of the sustainability factors and adhere to the new technologies that exist in the market. The organisation in focus is the Australia Beauty Clinic.

Without innovation and sustainability, organisations cannot hope to witness growth in the competitive market. Hence, it is necessary that every organisation develop certain products that can assist in its growth and provide the required support necessary for financial expansion of the business. In this regard, it can be said that the idea developed by Australia Beauty Clinic can help in maintaining the uniqueness in its business. The adoption of the smart mirror can assist Australia Beauty Clinic to attract customers that have a high sense of fashion. The benefit of this smart mirror is that it can help customers to choose between various cosmetics without having to apply any of the materials to judge its qualities. Hence, it can be said that Australia Beauty Clinic aims at the satisfaction of the customers so that they can get the best treatment of their skins.

With the application of the new idea, Australia Beauty Clinic can indulge in continuous development. However, it needs to identify the constraints that may exist in the business and the manner in which it can be mitigated. Therefore, one of the constraints that can be identified is the fact that the application of technical software is more in the development of the product. The smart mirror uses artificial intelligence programme so that it can process the requirements of the customers and suggest cosmetics that may suit the needs of the people. At the same time, the smart mirror can suggest products to the customers by analysing the make-up already worn so that similar products with different features can be suggested. This can help the customers to remain loyal to the product they use along with the company that manufactures the products. Another advantage that the smart mirror can provide is the fact that it can innovate the products continuously. For example, the smart mirror can provide customers with an option to compare between similar products of two companies based on its prices and features. Therefore, the smart mirror used in Australia Beauty Clinic can help the customers choose from the products manufactured by the company or the products adopted from other business markets.

The Unique Development of a Smart Mirror

Key Partners Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper 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

The biggest problem that may be faced by Australia Beauty Clinic is the fact that it needs to convince the customers about the product in the market. It has been seen that most of the times; customers remain sceptic about a new product and tend not to use it (Dawes & Nenycz-Thiel, 2014). This can be related particularly to the use of technology which customers find it quite tricky. Therefore, it can be said that convincing customers about purchasing the innovative product can act as a challenge for Australia Beauty Clinic. It is the duty of the managers of Australia Beauty Clinic to convince the people about the product. Therefore, it is necessary that the company maintain a target customer base so that it can gain profit and promote the use of smart mirror for fashionable purpose. The reputation of Australia Beauty Clinic has taken a huge dip in the market and the introduction of the smart mirror can help it to restore its reputation.

At the same time, certain problems can be mitigated with the application of the smart mirror. The fact that the customers can apply the make-up without having to apply it on the skin can help it to remain competitive in the business. Every customer can test the components and whether it suites the skin tone and the complexion. Based on this analysis, the application of the make-ups can be done and the customers can even choose from a wide range of selected methods. This is can be considered as one advantage that the smart mirrors can provide however, it may also be a problem, as most customers prefer to judge such items by its physical evidence. 

Therefore, it can be said that Australia Beauty Clinic, can adopt the disruptive innovation technique so that it can transform the working and functioning of the company in a proper manner. The adoption of artificial intelligence in the product can be costly for the company. This is mainly because such application requires excessive and high-tech software status so that it can maintain its dominance. The cost of the technologies can be excessive particularly for small-scale business such as that of Australia Beauty Clinic. Therefore, this can be considered as another factor that may create problem with the use of the innovative process. Hence, it is necessary that Australia Beauty Clinic develop the necessary tactics required for the adoption of the business model.

Constraints and Challenges

Hence, after the analysis of the issues it can be said that Australia Beauty Clinic need to identify suitable methods that can help it to mitigate the issues that exist in the company and with the implementation of the product. Therefore, it is necessary that the company develop proper promotional strategies so that it can ensure that the customers remain aware of the smart mirror. The risk factors involved need to be considered so that the company can align its product in the market with that of the objectives. Australia Beauty Clinic need to ensure that the managerial skills of the company need to be maintained so that it can use the technical expertise required for the development of the product.

After the analysis of the potential problems, certain benefits can be identified that may help in the development of the product and its popularity among the people. For example, it can be said that the introduction of artificial intelligence can help in the rapid progress of the technical factors of Australia Beauty Clinic. The enhancing of the product can be done with the help of the artificial intelligence thereby allowing it to identify the needs of the customers. As stated earlier, the artificial intelligence can help in identifying the preferred brand of the customers by identifying the brand they use. Therefore, the loyalty of the customers can be kept intact and consistent based on the use and applicability of the product. At the same time, proper development of Australia Beauty Clinic can take place with the application of the smart mirror. This is mainly because the company have lost its position in the market to competitors such as Shine Beauty and the application of the smart mirror can help it to regain its lost stature in the business market.

Therefore, it can be said that it is essential for Australia Beauty Clinic to analyse the possible constraints that may befall the organisation while implementing the smart mirror. The application of the smart mirror can be used like a smart phone and therefore, it needs to be kept in mind technically competent companies such as Apple does not incorporate the idea into its own mobile. This can be a huge loss of customers for the salon, as people can purchase the phones and use the make-up by sitting at their residential places.

Based on the analysis of the benefits and problems it can be said that Australia Beauty Clinic need to undertake a strategic response that help in the development of the organisation as well as the smart mirror. A SWOT analysis can be made so that the capabilities and prospect of the application of the smart mirror can be understood.

Strength Smart product Assists in choosing the varieties of cosmetics	Weakness Larger size Financial instability
Opportunity Provide scope of conducting effective make-up Can become a household application in the future	Threat Can be replicated Lack of proper promotional platform

Strategic Response to Constraints

Table 1: SWOT Analysis

(Source: Created by author)

One such strategic response that can be adopted by the company to mitigate the threat of the product is the size of the mirror. In the modern world, it can be difficult for most companies to incorporate products that are of large size mainly due to the financial spending required for manufacturing. Therefore, it can be said that the financial condition of Australia Beauty Clinic need to be the strategic focus of the company. At the same time, the threat based on the replication of the product from competitors and technical industries can be a strategic development that Australia Beauty Clinic needs to undertake.

	Project option 1: Do Nothing	Project option 2: Do Nothing
Analysis Period (years)	Year 1	Year 2
Capital Costs ($m)	$0	$0
Output Costs ($m)	$100	$100
Present Value of Benefits ($m)	$50	$80
Present Value of Costs ($m)	$45	$90
Benefit Cost Ratio	3:2	4:5
Net Present Value ($m)	$78	$100
Intangible costs / benefits (e.g. small, med., large)	$10	$10
Distributional impacts (e.g. small, med., large)	$40	$60
Preferred option

Therefore, certain recommendations need to be made so that the smart mirror can be developed in a proper manner. Australia Beauty Clinic needs to understand the feasibility of the product so that the value proposition can be understood. The steps required for the continuous innovation of the products can be enhanced and most importantly, it is necessary that the size of the mirrors be used. This can help in cutting down the cost of excessive technical tools. The reduced price can be used for further development of the smart mirror by using suitable promotional means to attract the customers. At the same time, it is also necessary to ensure that a proper distribution channel is maintained so that it can reach the customers.

Social media can be used for the promotion of the product, however, in order to deliver the product from one place to another it is necessary that Australia Beauty Clinic use direct business to customer framework. This can help the company to continue with the interaction with the customers so that it can incorporate any changes that exist in the business market. The delivery can be in the form of business-to-business framework wherein, the purchase of the smart mirror can be made from stores that manufacture innovative products. Therefore, this can help Australia Beauty Clinic to continue with its success in the business.

Conclusion

Conclusion can be made based on the analysis of the proposition of the business and the manner in which Australia Beauty Clinic can apply the smart mirror. The innovative product can help in addressing the need of the customers and move a step closer to attain digitalisation in the fashion industry. The suggested changes can help Australia Beauty Clinic to maintain its dominance in the business.

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