Competitive and Successful Strategic Management - Research Paper Example

Strategic Planning is an instrument of management that aids a corporation in concentrating its energy on warranting that members of the corporation are steering towards the same objectives, to evaluate and regulate the corporation's course in according to the prevailing economic climate. In a nutshell, strategic planning is a methodical effort to yield essential resolutions and actions that shape and control what a corporation is, what it is involved in, and why it is involved in it while focusing on the future. The generic strategies model (cost leadership, differentiation, and focus) is used by firms and organizations to gain a competitive advantage in a competitive environment.

The Abercrombie & Fitch store is a casual clothing retailer that focuses on young people, primarily college students. The company supervises about 250 stores countrywide, ordinarily in shopping malls, and likewise advertises its clothing on the Internet and in collections. The company's style has come to be recognized with the more risqué characteristics of upper conventional youth culture, way of life, outlooks, and music (Bryson, 2008).

The company adopted a differentiation strategy to maximize net income and also increase sales. This in return makes the company a competitive advantage. In one case scenario, in the year 2010, $2.97 billion worth of sales was reported by Abercrombie $3.037 billion by Fitch, and $298.2 million by Hollister. Aéropostale reported $2.4 billion in sales while $5.37 billion worth of sales were generated by Old Navy during the same time frame. It competes with other outfitters, Aerospatiale as well as a few smaller companies. (n.d) .The Company employs two most significant tactics: significant expansion and diversification of its products and services

The Home Depot is a household appliance retail corporation located in the USA. Home Depot assimilates a self-motivated corporate-level strategy corresponding to its skillfulness in sustaining fast growth. After its inauguration in 1978, The Home Depot has experienced an average of 30% in annual rate of growth. Their remarkable growth rate is partially a result of their corporate-level strategy. Home Depot has principally used a Concentration or Horizontal strategy to attain unparalleled growth.

The firm’s emphasis is on growing its products into various geographic localities and also in its value chain, while at the same time growing the variety of products and services obtainable in the current markets. For example, as the organization infiltrated markets through the U. S. Sunbelt, they carried out trials by expanding their store’s garden hubs and introducing an "Expo Design Center" storefront. The expo hubs are a geographic market niche that hopes to get the attention of upmarket homeowners by employing computer-aided design technology (CAD) and presenting exquisite and fashionable kitchen appliances. The company has adopted differentiation and expansion strategies (Alfred, 2009).

H.E Butt Grocery Company is a major food retail outlet in the USA that has diversified its service and products to also offer ticket sales, alcoholic beverages, and pharmaceutical products (prescribed drugs). The tactics involved in this retail also diversification and differentiation and expansion to other states/countries (Johnson 2010).

The strategic planning process involves planning since goals are set here which assist in determining an approach to be adopted and shaping the future performance of an organization. The three companies have their corporate-level management designing both long-term and short-term strategies that stabilize their companies and remain in operation. Hence with the strategies in place, major operations in the companies flow smoothly and major decisions can be made.