Business Strategy of New York Times Paper; Dell Company and Under armour - Essay Example

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The object of analysis for the purpose of this assignment is business strategy. It involves the action set by the company in trying to realize its competitive advantage. It involves a plan of action with set goals and objectives whereby the company has to strive in order to achieve them. …
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Business Strategy of New York Times Paper; Dell Company and Under armour
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Running head: Business strategy Introduction Business strategy involves the action set by the company intrying to realize its competitive advantage. It involves a plan of action with set goals and objectives whereby the company has to strive in order to achieve them. The following are three cases of three companies and how they have employed their business strategy. Case 1: New York Times Paper The New York Times was founded in 1851 by former banker George Jones and journalist Henry Raymond. During the civil war, demand for the newspaper was so high hence this made to produce even the Sunday issues since originally, it produced from Mondays to Saturdays only. Advancing its digital technology: Since 1990s, the company has taken steps to advance its digital strategy. In the past three years, it has spent more than $500 million on acquisition and investment in the new media plus the internet operations. In Sep. 2008, the company had 20 million unique visitors and this was an increase of about 27%. The online advertising revenues also rose by $ 10 million to $79 million. Its popularity then rose not as a result of the reputation of the New York Times paper committed to hard hitting, ground breaking journalism since this was something which could not be replicated by its competitors. The Harbinger group aims at transforming the company in five years from one that does about 10% of its business in digital to one that does most of its business in digital. It has advanced in its digital strategy through business acquisition which include point roll (this is a provider of media marketing services to the online advertisers). This helps the company in marketing its products hence many around the world can assess these services. This is one of the strategies which will make New York company compete effectively with its key competitors in the market (Carl 2000). Long standing relationship: The Company has also a long standing relationship with advertisers so the company has eager to take advantage of the wide audience which is reached by the company’s new media (Carl 2000). Vivian schiller in 2002, came with a new business strategy; she led the day to day operations of the New York Times most significant the website overseen product technology, strategic planning, marketing, classifieds and business development. The New York Times key competitors are in the publishing industry but also compete in the information collection and delivery and the internet content providers sectors. Its key competitors include News Corporation, Gannett Co. Inc and Washington Post Company (Carl 2000). Case 2: Dell Company Dell built its reputation as a leading technology provider from listening to its customers and then developing solutions in order to meet the customer’s needs. It is focused to providing a long term value creation and this is achieved only through delivery of customized solutions that make technology more accessible, efficient and also easier for every person to use. The company is also focused on improving core business, shifting its portfolio in to a higher margin and recurring its revenues. Direct relationship with its customers will also make the company increase in its performance. It also focused on generating its cash flows returns while at the same time improving operating income and cash flow growth. The following are the components of its strategy (Carl 2000). Improve core business: it seeks to profitably grow the desktop and mobility business and also increasing the online buying experience for its customers. It also focuses on increasing its competitiveness through cost savings initiatives which are focused on improving designs, logistics, supply chain and its operating expenses to adjust to the changing dynamics of the industry. Shift portfolio to a higher margin and recurring revenue offerings: It’s focused on expanding customer solutions and this is by delivering best value solutionse.g. Servers, storage, services and software. Balance liquidity, profitability and growth: It seeks to maintain a strong balance sheet with a sufficient liquidity to provide flexibility in order to respond quickly to the changes in the dynamic industry. Case 3: Under armour Financial and strategic analysis: This Company is engaged in developing, marketing and distribution of apparel, footwear and accessories for women, men and also the youth. It sales its products through stores, catalogue and online requests worldwide. The company uses the SWOT profile in its operation; this incorporates the company’s strengths, weaknesses, opportunities and threats. This has helped the company in understanding its partners, customers as well as its competitors better. Its key competitors include Nike Shoe Company. In 2005, Nike launched a full frontal attack on Under Armors stronghold hence this made this company to come up with its SWOT analysis as a result of the stiff competition from its competitors. Its no wonder the company is nicknamed the next Nike since going public in 2005. It has captured the hearts of consumers and investors and its new strategy has enabled its shares more than quadrupled. Its net income doubled in 2006, to $39 million, on sales of $430 million (Carl 2000). Reference Carl, W. 2000. The balanced score card: Translating strategy in to action. Harvard business school press. Read More
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