Strategic Management and Strategic Competitiveness - Essay Example

Internet and telecommunications infrastructure are the major contributors of globalization as people from different can easily connect and interact. This global interconnection increases job opportunities, ideas and competitiveness in equal measure. In its expansion process, Disney targeted those countries whereby people were greatly aware of the company and the services it offered. Another strategic consideration was the stability of the economy and the disposable income, which the citizens of that country used on leisure.

Trade policies, political and microeconomics stability also played a huge role in determining whether Disney opened a branch in that country. Globalization has led to the increase of the companies’ market and this has forced it to open many branches to cater for the high demand of its services. The company has opened up branches in UK, Spain, Italy, France, Japan and US. This new branches have led to the increase of the total revenue generated. In 2004, the company made a gross income of $2.

5 billion (Krasniewicz & Disney, 2010). The emergence of new technology has led to the introduction of video editing software and 3D, which has led to the efficient production of the films. Global recession negatively affected the company. The Disney parks and resorts would suffer during winter as the rate of people going there reduced significantly. This led to the falling of its revenue resulting in a financial crisis. The company has been forced to increase its entrance ticket fee to counter with the reduced number of visitors.

Industrial organization and resource based model impact on above-average returns The corporation needs to come up with measure that would help it get returns, which are above average. This would help ensure that it is not operating at a loss and that it can be able to sustain its operations. The resource-based model deals with how the corporation could use its internal resources to its advantage and avoid extra costs (Montgomery, 1995). The resources include the capital invested, the corporation’s workers, brand name and the patents.

Once the corporation has identified its resources, the next step to take is to compare it with its competitors. This would help in identifying the area that the corporation is lagging behind and needs to improve on. The study would also help enable the company identify its unique resources as this gave them a competitive edge over their competitors. This competitive edge would make them reduce certain costs and thus maintain above average returns. The industrial organization approach is the examining of the relation of the boundary of the firm and the market it is operating on.

It is hard to examine the market by mere observation and the corporation creates a situation that is similar to a perfect competition market. This makes the firm operate on limited information and assumes that there are many barriers hindering entry into the market. This would make the firm gather information about the market as new entrant and in the process of doing this it identifies the measures it can take to enter the market. The research helps the firm identify its strengths and weaknesses and in the process, it can avoid overhead costs and losses.

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