1. Defining the purpose, the company was formed
2. Defining the company’s mission and objectives in the long run.
3. Defining the competitive strategy to use
4. Implementing the strategy
5. Evaluate how the company is performing after the implementation
Indicate the markets that the company will pursue.
The company will pursue markets that are not too crowded with various companies offering the same products and services they offer. The company is keen on making sure that their products will not receive very high competition hence it opts to evaluate the market and identify where there is the need for the products and services but not many companies have ventured into the markets. The company has also invested in understanding the culture of people in various markets and evaluating their culture to the products they offer.
Specify the unique value the company will offer in the selected markets
The company will offer employment opportunities in the selected markets by starting up branches in the markets for easy and fast delivery of products and services. The company through the sale of its products and services will be able to fund various charity projects in the community by encouraging consumers to buy the products. For example, if a commodity is charged at $5, 0.03$ will be donated to charity organizations. This will enable various consumers in the market identify with the product because it is giving back to the society. (Brouthers,2015)
Discuss the resources and capabilities that are required
The company requires both tangible and intangible resources. The tangible resources include raw materials, finances and machinery. The company prefers raw materials which are found locally. This is to reduce the cost of transportation of the raw materials to the industry for processing and manufacturing. High quality machinery which does not break down easily and performs its task effectively is also required by the company. This will ensure that once the raw materials have arrived the end product can easily be made within a short time span. The company will need financial support from investors since the finances it currently has cannot sustain the projects that want to be initiated. The intangible resources that the company requires include Human capital. Human capital entails skills and expertise, motivation and leadership abilities. Both tangible and intangible resources will play a key role to ensure that the long run goals and objectives of the company are met. The company requires a marketing capability which aims at combining various aspects of the business like its brand and reputation.
Analyze how the company will capture value and sustain competitive advantage over time
The company will capture the value and sustain its competitive advantage in various ways. The first way is through Focus. Focus is a strategy that enables companies to dominate a niche in the market. This involves paying attention to a specific part of a market. Focusing on a niche where there is low competition will increase the chances of the company being the leader in the niche. This is evident in some of the biggest companies such as Walmart which began by narrowing its focus on rural towns where retailers could not get to. By focusing on a narrow market, the company will attract more consumers and can expand the market later. The company will also capture and sustain competitive advantage by developing customer intimacy. This entails researching and getting to know and understand about the company’s customers. This will help in predicting what the customers want and when they want it. After predicting this, products which suit their preference will be manufactured. (IšoraItė, 2014)
The company can consider cost advantage as a business strategy to ensure that the business will be a success. This will involve producing products and offering services at a lower cost as compared to the competitors. This strategy has enabled major companies such as McDonalds maintain their success. It will also consider differentiation advantage to attract more customers. This will entail developing products with features that differentiates it from its competitors. This will make customers view the products as unique hence have a preference of the product over the others. Major companies such as Apple and Nike have maintained their successful position in business through this.
The company will focus on two main aspects of corporate strategy. The first is allocation of resources. Allocation of resources is critical to enable the company to maximize its value. The allocation of resources will focus on capital and people. Capital entails allocating finances to business being conducted by the company all around the country to be able to conduct their activities efficiently. People entails allocating enough human labor to the all the businesses the company is conducting to ensure effective running.
The company is also paying key interest in vertical integration. Vertical integration entails controlling two or more stages of the supply chain. Vertical integration will entail controlling the manufacturing, distribution and retailing of the products. This will enable the company to offer products at a low price because it will cut out middlemen. This will in turn lead to an increase in the customer base.
The company is also forming strategic alliances with various organizations. A strategic alliance is an agreement between two or more organizations/parties that will enable them to help one another to achieve their set goals and objectives. The company has teamed up with various companies in different parts of the country to market its products. This will enable them to increase their customer base in the country before venturing into other countries. (Jiang, 2016)
The company has a very great competitive advantage. By teaming up with various other companies in different parts of the country to promote their products. This will ensure that the company’s products are easily identified by the customer than the products from the competitors. The company has a competitive advantage by adopting customer intimacy hence understanding the taste and preferences of their customers. This knowledge will help them develop products that are satisfactory to the customers.
The following is an organization chart for the organization.
REFERENCES
Brouthers, K. D., Nakos, G., & Dimitratos, P. (2015). SME entrepreneurial orientation, international performance, and the moderating role of strategic alliances. Entrepreneurship Theory and Practice, 39(5), 1161-1187.
IšoraItė, M. (2014). Importance of strategic alliances in company’s activity.
Jiang, X., Bao, Y., Xie, Y., & Gao, S. (2016). Partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: A contingency perspective. Journal of business research, 69(2), 804-814.