InnoCentive Case Solution
The nature of the work is reward base, therefore any solver presents the best solution, then only he/she will be rewarded by the seeker firm, which reduces that labor cost of the company.
InnoCentive has developed its strong presence in the domestic market as well as it has acquired significant market share in the problem-solving industry. Moreover, it has a wide variety of solvers that belong to different countries and background and possess competent skills and knowledge, which allows the firm to have a strong presence in the market. Due to providing excellent quality, many large companies such as Procter and Gamble, Corona, Eli Lilly & company, and Asset India have been its customers.
Weaknesses of InnoCentive:Â Â Â Â Â Â
The major weakness of InnoCentive is that it has a low reputation in the market regarding liabilities, which is not good enough, due to which its future debt rating has increased. Moreover, the R&D industry in which the company is operating is highly diverse and involves high level of risks, which may present several problems and challenges to the company such as IP rights, confidentiality on legal issues and accuracy on the solved solutions.
In addition, the company has invested only single business and has a low brand portfolio, which restricted the company to operate in the single industry.
Q 3) What should InnoCentive do in future?
InnoCentive should implement ideation collaboration in order to bring efficiency in its work, and by doing so the solver would be able to work more accurately and according to the needs of seekers firms. The company would also be able to provide faster and qualitative solutions. InnoCentive would also invest in other businesses to increase its portfolio. For this, the company should approach venture capitals so that they could facilitate the firm in future investments. In addition, InnoCentive should also develop innovative products and services that could present faster and lower cost responses.
Moreover, InnoCentive should also consider making a Joint Venture in the future with another firm to diversify its portfolio in order to yield a profitable business. The joint venture would enable InnoCentive to decrease its future debt rating by improving its liabilities.
Q 4) Threats for InnoCentive:
It is likely that the company would face growing competition in future in R&D industry as many firms are now focusing to operate R&D operations within internally. Companies such as Apple and Samsung heavily invest in their R&D and they do not require any outsourcing firm to provide solutions for their prior problems.In addition, the increasing rate of interest may also present certain risks for the company in the near future……………
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