Business Strategy Analysis - Essay Example

Strategy STRATEGY Q a) There are two main variables in the airline industry, which are regulation of the industry in main operation locations and sensitivity of the client base to prices. b) One scenario is the network fortress in which major carriers regain strong competitive edges in the global market and the long term, which will be characterized by increasing protectionist regulation of the American and European industry and decreasing clientele price sensitivity (Grieve, 2012: p16). Another scenario is that Middle Eastern and Asian competitors may dominate European carriers. This will be characterized by open regulation of the European and American industry and decreasing customer price sensitivity. A third scenario is that champion industries may decline as they struggle to survive in intense global, as well as local, competition. This scenario’s characteristics will be open regulation of European and American airline industry and increasing customer price sensitivity. The final scenario is one of new horizons, in which European and American carriers will still be struggling from the financial crisis, cutting business travel and seeing an increase in low cost airlines (Grieve, 2012: p16). This will be characterized by protectionist regulation of the airline industry in Europe and America and increasing customer price sensitivity. c) The first scenario will require restructuring and improving efficiency to control disadvantages of cost (Grieve, 2012: p17). The second scenario will require airlines to increase the levels of quality and service through innovation on the ground and in the air to stay competitive against low cost carriers from Asia. Another strategy would be a hybrid of the two, in which investment is made in cost saving and core preferences of the customer, while also improving various support processes. Finally, European airlines should lobby European and national bodies to reassess disadvantages and advantages of liberalization of the airline industry in Europe. Q #2 a) One resource that Square Inc possesses is knowledge and information, for example customer information systems like their CRM database, as well as knowledge and understanding of customers and retailers (Grieve, 2012: p22). Another resource they possess is capital in form of equipment and funds, which are relevant since their absence would create constraints for the company. With regards to Capabilities, Square Inc has a pricing management capability, which gives them the ability to extract from their customers an optimal profit and revenue using price discrimination tactics through a yield management system capability. Another capability they possess is customer relations management that enhances their ability to identify comfortable customers and to leverage, maintain, and initiate relationships with them to attain superior profit levels. Square Inc does this by collecting customer data and interpreting the capability of individual customers. b) In order to grow as a market leader in mobile payments, Square Inc has to access several complementary assets. One of them is brand building and communications management capability. The ability to create value perceptions for the customer and manage them will lead to a higher level of equity for their brand, especially if they use effective integrated marketing communications, personalized communications, advertising message delivery, and positioning (Grieve, 2012: p25). Another complementary asset that Square Inc should pursue is customer insights and market sensing. This involves improving their ability to learn about clients, channel members, competitors, and the wider market to come up with market intelligence they can work on, as well as targeting schema and market segmentation. c) The best strategy for Square Inc is through distribution of application. They should promote their Apps, while also promoting their compatibility and optimization capabilities with most phones (Grieve, 2012: p26). The App is to be downloaded directly to the customer’s phone after they use the service and they will be asked to launch the Apps. It is expected that most customers will accept to share their user details. This strategy direction does not have a transaction fee, although usage of the App may be low because some customers may not be well versed in using them. Q #3 a) Existing market New Market Existing Product Increase sales in their current market Sufficient experiences concerning marketing and design Rovio’s games are greeted by the customers, as well as retailers Game preferences differ for different customers in different regions and countries Existing growth capabilities in Asia and Eastern Europe New Product Increased pressure on the new design team Continued technology development has ensured Rovio’s has a good brand image Vertical integration between the retailers and the manufacturers Lack of enough experience Risk analysis prior to entry b) Using the 4 Ps of marketing mix, promotion may not be as important as the rest, although it will be essential in the new market (Grieve, 2012: p40). Therefore, they should build a good relationship with in marketing communication with customers in the new market. Advertising and sales promotions also need to be widely applied since they are popular and common approaches across the world. New methods should also be tried to attract new special buying groups. With the increasing efficiency of Apps and the internet, particularly among the youth, they should take the chances provided by online shopping channels, free edition Apps, online publicity and advertising (Grieve, 2012: p40). In addition, as an entertainment brand, their international communication and marketing needs to be attentive to entertainment and culture features. For example, in China, Rovio should emphasize Chinese culture and entertainment elements for their customers to feel respected and have fun simultaneously. c) Whereas the shareholder perspective values profitability over responsibility, stakeholder approach values responsibility more (Grieve, 2012: p60). The shareholder approach sees the organization as a means to maximize on profits, compared to stakeholders who are more interested in the socio-economic system. The purpose of the organization in the shareholder approach is to serve the owners, while, in the stakeholder approach, it is meant to serve all the involved parties. The shareholder approach also believes that society is served best via self-interest pursuit, while the stakeholder approach insists on the pursuit of joint interests. Finally, the major difficulty of strategy in the shareholder approach getting the agents to pursue the interests of the principles, while the stakeholder approach faces difficulty in balancing the various stakeholders’ interests (Grieve, 2012: p61). Q #4 a) The Fish and Chips food market will mainly cater to youngsters since this is where it is possible to build up Jim’s Fish Hut’s brand. Because this group has a fixed or low income, and that they will seek a price/value relationship, which will not be too much on their budgets. The secondary target segment will be those between 25 and 37 who tend to eat within the restaurant. This group has a more stable income and their budgets are more flexible, which means that they can seek more than a price/value relationship. The restaurant will have a dual lunch featuring chips that will seek to provide for those who want a quick bite, rather than a lunch. b) There is medium competition in the fish and chips sector in Sea-haven with competitors including Smithy’s Fish and Chips that serves a broader food range and Branley’s Fish and Chips, which provides an even wider range of products. The threat of substitutes also exists with a takeaway/delivery Chinese restaurant, as well as two Pizza shops in Pizza World and Pizza Dolce. These are targeting the same segments that Jim’s Fish Hut is targeting. Supplier power is still strong as Jim’s Fish Hut is totally dependent on them to deliver the products required. Buyer power is high as there is a choice as to the restaurant to eat at, as well as substitute products in the neighborhood. Finally, the threat of potential entrants is high with KFC and Pizza Hut getting planning permission near the motorway. c) Jim adds value to his business by providing traditional service and decent value for money. This has allowed him to create an established base of customers who may also influence their friends to eat at the restaurant. This appeals to the older generation that has lived at Sea-haven for a while and Jim hopes that it will catch up with, the younger families moving to the area. To do this better, Jim could use IT to streamline his processes and increase the restaurant’s productivity. This will give him useful information that he could use in the categorization of options, such as management of staff and popularity of some dishes (Grieve, 2012: p82). It also helps to track growth and prove the restaurant’s value in case he decides to sell it. d) Jim can differentiate through efficiency in the ordering process, hiring quality employees, motivating them, and remunerating them fairly (Grieve, 2012: p90). He can also differentiate the restaurant through improved customer service and nutrition. By advertising the restaurant as selling foods with less fat, and increased nutritional value in their salads, Jim can differentiate the restaurant from his competitors. References Grieve, S. J. 2012. Business strategy. Oxford, B. Blackwell. Read More