DQR Week 2 Strategic Management & Policy

Discussion Question Response

What strategy will you use and why? What are the strengths of your approach? What immediate things will you need to focus on to actualize this strategy? What will you need to focus on in the longer term?

Shane Agnone - What strategy will you use and why? The strategy I have chosen to use is the Cost Leader with Product Lifecycle Focus. I have chosen this strategy because it is very structured and seems to be aimed at keeping costs down while making a profit. I also like that there is no real product loss, meaning that the old products are re-labeled and then sold to a different market while the new products take their place. This allows for future growth while still making a profit off an old design. On the surface, this kind of reminds me of Microsoft Office. Every couple of years a new software is produced and marketed while the "old” program is continued to be sold at a lesser price. 

What are the strengths of your approach? The strengths are that costs are kept at a minimum, specifically with R&D, production, and material costs. This in turn allows for the product to compete on price. This strategy also continues to use the "old" product as low tech and will continue to see a profit after rebranding. This allows for a long-term plan of two products being sold while keeping costs down. 

What immediate things will you need to focus on to actualize this strategy?

The ability to make our product known to the consumers as well as the ability to produce enough product at the beginning of the product's life cycle. This, in theory, will make for good sales as our product will be competitively priced compared to our competitors.

What will you need to focus on in the longer term? Bigger picture thinking will be the evolution of the new product that will be slated for three years from now. As well as the relabeling and marketing of the old product as low tech. This in theory will allow profit from the new product as well as residual income from the old product.

Response –

Larry Drake - The strategy I have chosen to use is the Cost Leader. The whole goal for any business is keeping the cost of production down so what the company charges to sale the product the more profit will be seen for each sale. The Cost Leader will help guide me down the road for better decisions so I don't go bankrupt we all know that could happen really fast in any business if not trying to lawyers find a better way of producing your product. My goal would be to always make sure my company is moving with future meaning better product with new designs or the product being built better, but once that happens it constant to cut in the profit. If done right I will see a drop in profit, but in the long haul I will make more profit than I would just sitting on the same old product and never make more profit. Plus, if my company doesn't advance the shining on products other companies will and I will be out of business before I really get started. Got to say owning a company is Hell ha ha. But yes, for real it is.

Response -