Current Strategy and Competitive Position of UFO - Case Study Example

UFO RЕРОRT САSЕ АNАLYSIS University Student Id Course Date Current strategy and competitive position UFO was founded in the year 2005 by the valuable group where it was considered as the largest digital camera distribution firm globally by the year 2012. The company managed to operate in a region that had digital technology and internet penetration that was lower as compared to other areas. The success of the company in such regions can be attributed to the high quality and future-oriented strategies that the company management was utilizing. Through formulation and implementation of competitive strategies the company managed to become very competitive in the market where despite the unfavorable conditions in the country it was opera, it managed to lead in the world. UFO began by developing its ideas to strategies that resulted in the revolution on the movie screening in India. The strategies adopted by the company were highly considering the changes that were taking place. In particular, the plans were highly considering the technological advancements in the formulation of its policies. The management of the company realized the need for keeping pace with the changes in the process of achieving competitive advantages where it ensured that it remained relevant in the industry through offering products that could meet the needs of the customers. The company strategies were customer oriented where they were geared towards ensuring satisfaction hence ensuring customer loyalty through offering unique and relevant services in the market. UFO adopted the strategies that it could make use in the process of increasing its revenue where the strategy adoption was mainly considering both the external and internal business environment. The management of the company was working towards ensuring that the strategies adopted were in line with the objectives of the company. In the process of achieving its revenue objectives, the company adopted two major strategies aimed at increasing its market share in the market (Grant et al. 2014). The first strategy of UFO involved maintaining the market share through fostering growth of the cinemas in India. Second, the management of UFO decided to explore the alternative sources of revenue for the company through the use of the same business model that ensured differentiation of the services and products. The company strategies provided that the potential alternative avenues that were available in the rural regions for cinema screens were utilized. Business model UFO adopted a business model that ensured differentiation of its operations and products. The company tried to differentiate its services and products aiming at making the products unique hence able to achieve competitive advantages. UFO was using technology to achieve effectiveness and efficiency in the distribution of the movies through online platforms that proved to be faster. Without UFO the customers could not be able to access the movies faster as the traditional means were slow and inefficient. UFO brought many revolutions in the industry through adoption of technology to make services and products of different. The business model that was adopted by UFO was of benefit to exhibitors, distributors, audiences and advertisers. The model was a solution to many problems that were existing in the industry such as film piracy. UFO adopted a business model that could reduce film piracy, and eliminate some drawbacks in the industry both technical and physical. The business model ensured that online distribution was possible making the customers able to access the movies despite the physical distance involved. UFO business model was unique in the industry as it introduced many changes in the film industry. The business model adopted played a significant role in the success of UFO as it managed to differentiate its service delivery making it compete well with the company as it was offering services in a way that was not witnessed in another company. UFO embraced the changes in technology hence tailoring its service delivery in a way that could guarantee success in the market. The company expanded its operations increasing its market share through spreading to movie theaters in different regions. Industry analysis The movie industry in India is governed by many regulations where many requirements have to be met before starting a business in the industry. Establishing cinemas in India required more than 90 permissions scaring away the investors. Many investors viewed the cinema business as a challenge as they feared getting stuck in the process of establishing the business due to the many requirements. The challenges of venturing in the industry proved to be advantages to UFO as that was a significant opportunity for growth due to reduced competition. The industry was highly regulated resulting in few competitors in the market. The regulated industry contributed to the success of UFO as it was able to increase its market share easily due to the limited competition (Johnson, Christenn & Kagermann, 2008). The film industry in India has been undergoing numerous changes where technology has become an important tool for achieving competitive advantages. The customers in the industry are looking for the companies that can meet their expectations for high-quality movies and efficiency in their service delivery. The film industry was facing the challenge of costs as the customers were also looking for affordable products. UFO ensured that it achieved cost advantages in the market through utilizing technology in its operations making it able to offer competitive prices as it managed to achieve costs efficiency in its operations. Strategic issue Considering the industry analysis, UFO faced some strategic issues that can include technological change and increased the bargaining power of the buyers. However, the industry was not saturated as many investors were fearing the many requirements that were needed for establishing a business in the film industry. The rivalry of the firms in the market was low due to the reduced number of the firms operating in the industry (Porter, 1996). UFO should have made use of the industry characteristics to achieve competitive advantage. For instance, the many regulations in the industry helped UFO to ensure that it increased its market share as it revolutionized the film industry without high competition. The company made use of technology to develop new ways of delivering services to the customers in the market in a way that is more efficient and effective. UFO had technology that could be used in differentiating its products aiming at eliminating the bargaining power of the customers through providing unique products. Through the use of technology, UFO could differentiate its services and products to remove any possibility of substitution hence increasing the switching costs of the customers (Varsha, 2016). It is clear that UFO should implement the differentiation strategy to achieve some competitive advantages in the film industry. However, it must consider the technological changes taking place in the market to remain relevant in the industry and offer products that are in line with the expectations of the film industry considering the changes. Evaluation Some of the alternative strategies that are available for UFO can include expanding its operations to the international markets. Considering the fact that the company has managed to adopt technological advancements taking place in the market, the use of technology can be the source of its success in the market. Therefore, UFO can further make use of online platforms to access the international market aiming at increasing the sales volume. Expanding the operations of the company outside India can create many chances for the growth in the revenues (Teece, 2007). The company can be in a position to access many customers in the international markets than in the local market. However, there is the need to assess the competition level and the regulations in the targeted international markets. Also, the many regulations in the film industry might have contributed to the success of the company as the level of competition in the industry is low. The lack of intense competition might have been an important aspect that has helped UFO to lead in the industry (Kaplan & Norton, 2000). However, the many regulations could have affected the efficiency of the company operations due to the various policies that need to be implemented in the industry. Recommendations UFO should ensure that it makes use of technology to manage its costs of operating in the industry. The decrease in costs of operating can assist in offering prices that affordable to the customers. Considering the fact that demand does increase with decreasing prices, the company can increase the sales through rising demand. Cost advantages strategy could be achieved through increasing investment in technology that can help in managing the company costs (Varsha, 2016). By increasing investments in the technology, the company can be better placed to keep pace with changes and remain relevant in the industry hence offering products that can meet customer expectations. Differentiation strategy should be the best strategy that UFO needs to implement by coming up with unique products that do consider the market changes. This strategy is crucial in ensuring that the company remains competitive and retains its market position through ensuring that new product features consider the customer preferences (Porter, 1996). However, UFO management needs to invest in research and development to assist in keeping pace with changes in the film industry. In conclusion, cost advantage and differentiation strategies are important to UFO in the process of achieving competitiveness in the industry. References Grant, RM, Butler, B, Orr, S & Murray, PA 2014, Contemporary strategic management: an Australasian perspective, 2nd Australian edn, John Wiley & Sons, Milton, Qld. Johnson, MW, Christensen, CM & Kagermann, H 2008, 'Reinventing your business model,' Harvard Business Review, vol. 86, no. 12, pp. 50-9. Kaplan, RS & Norton, DP 2000, 'Having trouble with your strategy? Then map it', Harvard Business Review, vol. 78, no. 5, pp. 167-76 Porter, ME 1996, 'What is strategy?', Harvard Business Review, vol. 74, no. 6, pp. 61-78. Teece, DJ 2007, 'Explicating dynamic capabilities: the nature and micro-foundations of (sustainable) enterprise performance,' Strategic Management Journal, vol. 28, no. 13, pp. 1319-50. Varsha, J, Subhadip, R, 2016, UFO Moviez Flying in the Digital Cinemaspace in India, Ivey Publishing pp’s 1-12. Read More