Business Planning and Development - Essay Example

We served the customers with uniqueness and quality rather than offering them lower prices (Business Dictionary, 2011). The company offered quality and features that were acceptable and valued by the customers. The advantage that the company encountered due to differentiation strategy is the uniqueness among other available products. Nowadays people prefer uniqueness even if they have to pay a little extra for it. For this strategy, we trained the production team and sales department for creating innovative products and properly market the products. The difficulties that the company faced were that the rivals copied the style and design and offered it at a lower price. This affected our market position and resulted in lesser customers and market share. The other difficulties that our company faced were due to the sales and production teams (Murray, 1988). The differentiation strategy highly depends on these two departments. If these are strong and reliable the company will flourish. That is why the company hired a consultant and increased its production units. The company also got facilitated by the advertising strategy. This helped the company in having greater sales and profit.  The company overcame this difficulty by offering quality and services that were worth buying. The biggest challenge for our company was to provide unique services to the customer and to satisfy a maximum number of customers (Strategic Management, 2010). In achieving this target, we have competed with the rivals and reflected our decided strategy with our actions and products.

                   The prospects of the company are to enhance its targeted market and to provide the customers with a larger variety and styles. The customers are concerned with the styles and prices of the product. We want to work on it to further collaborate with the customers in providing them products of their choices (Porter, 1997). For achieving this goal, the company would have to increase its production and manufacturing units. The company will need the services of more distributors and consultants. For the sake of sales and production enhancements, the company has to bring in more assets and operating resources. As discussed earlier, to achieve these goals the company has applied for a loan to expand the finances and resources. The more the company has opportunities for increasing the production units and sales, the more the company can earn profit and efficiency. The target for setting up this system is to increase sales and profitability.  The biggest trade-off in this policy is the low cost versus high cost. The benefit that the company may get due to the expansion of production units is the profit and sales. When the company offers a product with extra features at a higher price, only a limited number of customers buy it. In contrast to this, the people buy products which are cheaper in rate and are imitated products. The company should have enough resources that if the company does not achieve more than it has estimated, the company can recover the loss. The companies offering lower prices can b difficult to tackle but if the customers are loyal the company can gain profit and credibility.

                       For the establishment of this business, I have sacrificed a lot. On a personal note, the commitments that I had to make include the sacrifices of one’s own needs. We have to fully commit and surrender our lives for the establishment of the business and to achieve our set goals. We had to sacrifice certain areas of our lives in establishing this business. The staff of the company has sacrificed a lot, from their free time to family time and from working more than 9 hours a day to not taking holidays. Setting a up business requires 100 percent input from the staff (Strategic Management, 2010).

                The sirvente software has facilitated me in learning the basics of business. The decisions and pressure that the people face or go through in their practical lives, sirvente has helped me in deciding at times of pressure. Being a business student, the stress and decision-making power that is required for the business. This software has helped me in working in a real-world situation. It has helped in understanding the basic management functions, quantitative and financial knowledge, and skills that are needed to manage a business (Simkin, 2002)