This assessment will cover following questions:
- Evaluate the contemporary challenges evident in the global business environment and the impact on the SME sector.
- Critically assess the concepts of entrepreneurship, innovation and creativity and their role in the development and growth of Small Medium Enterprises.
- Generate the local challenges relating to the specific problem you identified for the digital infographic and how the innovative solutions could be implemented in the overseas cities.
Virtual reality is one of the computer technology which creates a stimulated environment. It provides an experience to the user by showing the things in a 3D mode. Furthermore, it comprises of stimulation of senses such as vision, hearing, touch and sometimes the smell as well (Berger, 2017). In other words, it is an artificial world which gives an experience to the user of the real world. In this report, Cake Entertainment has been chosen which is a UK based company engaged in production, distribution, financing and development of kids' and family entertainment brands. Following the previous Ocean Museum virtual reality educational experience proposal aimed at children and families, this report will detail the application of the proposed innovation in the UK and how the solution could be implemented at Disneyland in France. This report will discuss the main problems associated with pollution of the seas and oceans, as well as describe the proposed educational and entertaining solution for this with the help of innovative digital technology such as virtual reality. Additionally, this report will look at the current challenges for the family entertainment industry in the West Midlands and in Disneyland in France, as well as its key international considerations for the implementation of the virtual reality Ocean Museum abroad.
Current challenges for Family Entertainment Industry in the West Midlands
Expensive-Virtual reality is quite an expensive technology which makes it difficult for the people in England. Family Entertainment Industry is place which provide numerous services of indoor games and virtual reality being one of the new concepts being used in the mentioned segment (Camp, 2017). The products used in providing virtual reality experience are expensive because of the high costs at manufacturers' end. This in turn makes expensive for average buyers.
Huge investment-Virtual reality is a technology which requires set of special hardware to make it work properly. Furthermore, there should be significant amount of space where numerous users can be enjoy virtual reality experience. Also, the technology keeps changing very frequently thus, the companies in Family Entertainment Industry should have the knowledge about the same and make investment in order to upgrade the existing virtual reality technology. Along with this, many other accessories should be included which add more to the investment.
Lack of familiarity- Virtual reality is not a technology which many customers are aware of. Virtual reality includes with headsets which are one of the most important elements of VR. The customers should be aware of the guidelines about how to use the accessories in order to gain the desired experience which the virtual reality intends to provide. This is a significant challenge which restricts the families and children to have the experience which they can enjoy. Furthermore, it is a technical matter which can be used properly when the user know about all its features (Fee, 2016).
Lack of viable business models- Virtual reality technology is the considered to be the competitive edge technology but there is no specific model which can be used in order to fulfil the future needs. It is important for the companies in Family Entertainment Industry to have changes in the present virtual reality in order to make it useful and increase customer satisfaction for the users.
Health effects- Virtual reality is a new technology which comes with challenges for the health of individuals using it for an experience. These health effects can be blurred vision, nausea, headache and queasiness (Rhatigan, 2016). The main effect can be seen in mental health of people who are using it for their fun. If kids use the same then it can harm them as they are very tender to use and get habitual for the same. This can be disadvantageous for the companies for a very long time.
Social impact- This challenge is about creating negative influence of the individuals living in a country. Virtual reality may make the users desensitized as their actions can be violent. This can increase the social issues and enhance the number of criminal activities. Furthermore, the behaviour of people can be transformed negatively leading to high crisis in the society (Days, 2018).
Specific problem and opportunity identification
It has been observed that ocean is highly responsible for mainly all the life on the earth as it covers majority or 70% of planet surface but it drowns in the plastic presently. It has been found that now-a-days there it has been seen around 5.25 trillion of the micro-plastic and the macro pieces that are seen as floating within open ocean weighing up 26 g. 000 tonnes. Around 5000 of the marine related plastic pollution has been founded per mile of a beach in UK. Each day approximately around 8 million of the plastic pollution pieces in finding its way into the oceans. Over 150 of the plastic bottles litre every mile of the UK beaches and approx 10000 of the marine mammals and the turtles are been killed by the marine plastic pollution on an annual basis.
Virtual Reality can overcome any of the challenges but one of the main issue with this is that it is expensive. There are many factors and reasons which contribute to the increase of the prices. Furthermore, technology is required to be upgraded with the time and as soon as new technology is introduced. This is to attract the customers and retain them for a long time. When its comes to raising the awareness about marine life pollution through virtual reality, the main concern is that customers tend to avoid such experiences due to high prices. They are not be able to afford the related services. Hence, it can be said that higher prices lead to loss of customers and market share. Every company works to reduce the prices by carrying activities and implement strategies which can help the organisation to make a strong position in the market among the competitors (Gershon 2016). Along with this, there are number of accessories which should be added with VR in order to make it a complete package. In the context of the current project, it can be add more costs to VR leading to high prices because it will show a complete ocean. The stimulated images will require new technology to show the whole marine life and the pollution that is being done by the industries and factories. This calls for additional investment and additional expenses which require the companies to recover the same by increasing the profit margin. This automatically raise the prices which make the virtual reality expensive.
However, there can be number of opportunities which can contribute to higher income and sales. One of the prime opportunity being that manufacturers are there who can provide cheap raw materials to make the services of virtual reality worthy. Cake entertainment can use the solution for virtual reality which can make it cost-effective. As the Family Entertainment Industry is growing with the introduction of the concept of VR, it can increase the growth and revenue of the same. This can create opportunities for other companies in the same industry to collaborate with Cake Entertainment. Along with this, it can create chances for the chosen company to have enhanced market share and customer base. Also, the use of virtual reality will be done for raising the awareness of pollution level in ocean so this can attract the investors who can provide the funds to it which can be used in carrying the activities smoothly.
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Innovation process leading to the digital solution
Innovation process refers number of stages which are followed by the developer to make an innovation work (Goltz, 2016). The steps are same irrespective of the size and nature of business. Innovation is significant for the success of the venture which adds value to the services and goods. The steps of innovation process with respect to Cake Entertainment is as follows:
- Discovery- This phase is about the giving time and using the resources to find out the demand of a specific product or service. This involves identification of the main problem so as to select the appropriate service which can help in gaining competitive advantage. Furthermore, it requires strategic thinking where new ideas flow which can be transformed into reality. It is also includes finding of various alternatives which can be used for increasing the virtual reality experience. In the context of Cake Entertainment, the research conducted by the company for the virtual reality about marine pollution has made it realise that a cost-effective service should be developed.
- Development- This stage is related with the allocation and utilisation of the funds and resources available with the company. This calls for engineering and designing the whole model of virtual reality which can be used by Cake Entertainment (Koehler, 2017). It is all about choosing the best software which is appropriate for developing the expected service. With regard to Cake Entertainment, it is focused on preparing the virtual reality to show the marine life. This may have higher errors therefore, it will be using agile software for the same. This will help it in breaking the whole project into small sets for giving real time view of the marine life.
- Commercialization- This stage is related with bringing the product to the market. Cake Entertainment can have a separate team who will look after the marketing of the product to the target customers in order to attract them. This includes launching of products to providing after sale services. It is one of the most important activity which should be done with number of strategies followed by receiving the feedbacks from the customers in order to incorporate improvements. This can be promoted through social media platforms such as Facebook and Instagram which are popular around the world (Puenpa, 2019).
Proposed solution and potential project impact for the company in the UK
For overcoming the problem of ocean pollution, immersive virtual reality experience could be created where ocean museum could exhibit a heritage of the an underwriter world and its respective environment. Through this it could develop awareness among the people by revealing history in respect of how the ocean had got changed in the million of the years for purpose of an education, enjoyment and the study. Market segmentation need to be done on the basis of the target audience and the target market where target audience includes children who are aged above 10 yrs, adults and the families aged between 18 to the 45 years. Highest level of the presence among the children, high level of household income and the full time employment. Adoption of the VR headset is been led by the young adults but an older adults aged in between 35-39 are having the stronger usage rates. On the other side, impact of VR headset is not counted as advisable for the children under the age of 10 because it causes eye strain and the fatigue. The target market is been considered as the universities, schools, museums, events and the attractions. It also includes the families and the adults who are aging between 30-45 for the purpose of home entertainment.
The proposed project chosen for the project is associated with the several challenges which influences its outcome in positive as well as negative manner. On the basis of challenges provided in the above specified section, it has been determined that there are various challenges which would be faced by the company while introducing this new concept. Some of the main challenges faced by family entertainment industry are expensive, huge investment, lack of familiarity, health issue, lack of viable business model etc. In order to reduce all of these challenges some of the proposed but feasible solutions are provided to the business developer of this business so that they could eliminate its related issues in appropriate manner (Wooden, 2018). This solution also places positive impact over the stated company as well that will helps them in their effective establishment.
In order to deal with the issues related to huge investment, it is important for the manager of the company to focus on developing their knowledge on banks which can provide them required amount of loan so that they can execute their planned business plan in rightful manner. For overcoming issues related to lack of familiarity, it has been determined that the company is required to adopt effective marketing strategy so that they can easily promote their product and services among proposed customers in rightful manner. In addition to this, it has been analyzed that after developing effective knowledge on VR, the customers will get influenced towards the introduced product. This will also influence sales performance of the company in appropriate manner. Increasing familiarity with the technology advanced tool not only attracts customers but also provides higher range business opportunity to the industry leader with businesses.
Apart from this, it can be said that major challenge faced by the company is related to the expensiveness, thus in order to overcome this, the proposed solution provided for the same includes adoption of effective business model that is supportive for the company in reducing its cost. As a result, this simply reduces cost of the product that is being offered to the company in rightful manner (Sibal, 2015) . The overall impact of this for Cake entertainment is that it would be easier for the company in improvising their sales performance in effective manner as their products would now of low cost that would definitely attract huge range of customers towards. In addition to this, furthermore, it has been analyzed that low cost products directly enhances their demand at workplace which ultimately provides them support in enhancing their sustainability within the same market zone in effective manner. Along with this, furthermore, it can be said that this by providing low cost product, the company can also increase their profitability in the quicker manner that ultimately leads to attainment of competitive edge.
Current growth challenges faced by case company
As per the overall analysis, it has been determined that family entertainment is facing numerous of challenges that are placing higher impact over their business performance in negative manner. In context of Cake entertainment, it has been analyzed that business association working in the UK and offering Virtual reality services to its customers which allows them to experience of marine life. While offering the similar sort of services, it has been analyzed that the respective company mainly faces challenges related to reputation, Cyber attack, upcoming business model which includes higher technology, talent risk etc. With reference to the current case scenario, it has been determined that there are few challenges that this company faces while introducing virtual reality oriented services to its customers (Thierer and Camp, 2017). Elaboration of the main challenges which influences their growth is described as below:
Increases competition: Even though the respective concept is new within the UK but existing rivalry in family entertainment sector is providing them competition. This is directly placing higher level of impact of their performance. In addition to this, it can be said that effective influence of customers towards the existing companies directly places impact over the present status as well as performance of the company in negative manner.
Cyber attack: Also, cyber attack is the major crime that has been identified as the another challenge which places influences over Cake entertainment in negative manner. It can be said that the proposed concept is quite new with in the UK which directly increases chances cyber attack as existing rivalry might use hacker to explore concept of Cake entertainment which is going to be introduced by them in the near future (Shapiro, 2018Smith, 2019). This directly places impact over their growth because if the information related to the concept get viral then there are probable chances that other competitor might make use of it for attracting more number of customers towards them.
Upcoming business model: Later on it has been determined that technology is upgrading day by day. This simply creates higher level of challenge for the Cake Entertainment. It can be said that business leaders belonging to the other sector are entering into this industry with effective business model in order to expand their business. For influencing more number of the customers. The respective businesses make use of advance technology that simply enhances interest of customers which increases their chances of success. Increasing number of more advance model businesses directly develops biggest challenge of Cake Entertainment which also places influences over their growth structure as if customers another better option then they will definitely get influenced towards the another one. This will simply influence sales performance and profitability of Cake Entertainment.
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Key international considerations for implementation of the digital innovation in the overseas case company (or equivalent in EU)
Cake Entertainment is considering France as an overseas country in which it plans to expand the business and bring the innovative idea in the country. For this purpose, it can encourage other similar companies to collaborate with it. There are some considerations which should be fulfilled in order to avoid any disputes. The same are as follows:
Legal framework- There is set legal structure for bringing digital transformation which should be met without any contravention. This is about number of laws and rules which are applicable on international companies who are planning to bring virtual reality. Furthermore, there are additional rules which should be considered. European Directives are there which should be abide by as they are necessary for the company to launch the business by Cake Entertainment (Parry, , Burnett and Merchant, 2016).
International standards- There are number of bodies which provide international standards in order to bring standardization and uniformity. This helps investors to measure the profit and viability of the company so that more funds can be raised. Therefore, no breach or non-fulfillment should not occur as this can bring the company to close. Apart from this, Cake Entertainment should review its existing level of compliance in order to avoid any conflicts at a later dater.
Training to employees: It is important for the management of Cake Entertainment to provide training to employees so that they can easily indulge in to the work of digital innovation. It can be said that by providing regular based training to employees as per the requirement of virtual reality concept for expressing and showing up marine life to them it would be easier for whole manpower to manage the work to accomplish their expected goals and objectives (Santo, 2015). These training session will be provided to employees as per the requirement of work and according to the level of employees learning capability.
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On the basis of above mentioned report, it comprehended that innovation is highly important for every sector as it allows them in enhancing their growth rate by attracting more number of customers towards them in rightful manner. Along with this, it has been further determined that main challenge that has been identified by family entertainment industry is huge investment and expensive services that directly places impact over their overall functioning. In addition to this, it has later been identified it is highly important for businesses to identify their proposed solution towards the respective challenges so that they can get overcome from it effectively.
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