Business Units of the Thunder Global Company - Essay Example

Business strategy report By of Department Business strategy report Thunder global is a company that operates under different business units in the European geographical markets. The business units under the company are thunder software that deals with the creation and developing of new and existing software’s for mobile phones and computers. Thunder logistics is another business unit that operates under the company. The business unit concentrated with flight and shipping logistics. All these business units operate under the European geographical market. The European geographical market comprises of all countries that are under the European nation. They use trade rules and regulations that have been set for each country by the European Union. Branches of each of the business units are spread across these countries. However, they do not share business premises or any other resources. Each business unit operates on its own, but they operate under the same company name In this paper, we shall be reporting to thunder software. As stated, thunder software deals with developing, creating new, and existing software’s for mobile phones and computers. The business unit is spread across the European geographical market. This places the business unit in a very competitive industry and market. Most of the new and better software come from this market. The industry in this specific market has many developers that release open source software’s. This software’s do not require the user to purchase them so that they can be able to use them. This has raised competitiveness in the industry because the open source software’s can be used for the same function as a normal software’s. In order to compete with such a software the company needs to develop better and more user-friendly software’s. New and latest methods for developing software bring the most important chance to improve a company’s reputation (Mark & Eric & Linda 2013, p. 1). Putting this fact into context, competition is bound to be high in the software industry. There is a lot of revenue that is collected from the software business. Every company that prides itself in making it in the software business bites in from the cake of revenue. However, it is not easy for a company to make it in the software industry The European geographical market presents a challenge in terms of competition in the software market. More companies are capable of creating top notch software’s. Thunder software relies on its growth strategies so that they can be able to stay afloat amidst the competition. The company invests in the latest materials that are used in creating top-notch software. It also concentrates on research for new and trending software to ensure that the products that they create are of the highest standards and user friendly. In the European Union, technology grows at a very fast rate. Relying on customer reviews on how to improve products and the new ones that the customers need will go a long way in improving the competition of the product. The company always carries out a survey to let them know how the customers receive their products. Perhaps one of the most important strategy that allows the business unit to remain relevant in the face of competition is the way that they are on the hunt for new ideas that can develop to a popular software. The business unit has created a platform that allows registered users to post their ideas on new and development of existing software. Using this platform, the company sieves through all the ideas that are posted using the current and emerging trends in software, to find out which idea is viable. Then they will pay the users whose ideas have been picked and send them to developers for the ideas to be developed. This strategy has helped the company compete effectively with other companies. This platform allows the users to review the software before they are realized in the market so that they are able to correct any problem that will be raised by the people who review the software. This business strategy has catapulted the business unit at the top of the market. Staying on top of the competition is not an easy job and the company has spent millions on advertisement and research. To compete with the open source software’s the company has merged its operations with phone and computer companies to give them exclusive rights to use their software’s. Using regulations that have been set by the European Union regarding the European geographical market, the business unit has drafted contracts with phone and computer companies that do not allow the products produced by these companies to accept open source software’s. The competitiveness of the industry makes the company come up with new and long lasting strategies that allow them to be relevant in the market. In addition, this competitiveness has led for the business unit increases its revenue by creating new and better software than other companies. The business produces business software’s that are used for accounting and keeping track of all business activities. As a strategy for the business unit to avoid competition in all sectors of the industry, it has concentrated all its efforts in creating software that is commonly used by most mobile users and businesses. They do not concentrate so much on software that are diverse and have better options for what the company produces. The company engages in healthy competition for its products and takes challenge as a positive chance for them to better their products. The European geographical market is vast and has many demands on software because it consists of many countries with each country having a specific need in a software. To improve on the competition; the company has taken the time to review each countries need of a software. While they are design, a software they factor in all the feedback from the research to create a product that can be used across the countries in the European geographical market. As the market evolves, the company tries to keep up with all the trends that emerge and design their software using these trends so that they are able to sell more and beat the competition. Competition does not depend on the effectiveness of an employee or the business unit, but it depends in the industry and the economic and social trends of a nation (Weihrich 1999). Thunder software enjoys a good strategic position in its industry considering the European geographical market. The business unit is ranked very highly in the European geographical market. This has made the company improve on its revenue and expand its services to provide them on a global market. The type of infrastructure that the company has puts it among the most richest and efficient company in its industry. This fact has enabled the business unit secure funding from various sectors to improve its services. Its positioning in the industry attracts many companies and contracts to seek services for their software needs from the company. New technologies and trends in the world shape the way that the markets will follow. The first step in effectively positioning a business unit is determining the likes of the consumers, the second is accepting the economical constrains of the industry. Low priced technologies are the main essentials for successful position of a company in a market (akkaya 2013). For thunder software this is the strategy that they have used to position themselves at the top of the software market effectively. When it comes to positioning the company at the top, they concentrate more on analyzing the market to come up with the best way to create strategies that will put the company at the top. Using the porter five forces analysis of the market the company comes up with a framework for development of strategies. Using the porter five forces in developing your business strategies will involve you formulating questions that will assist you in answering the questions. These questions are about the threat of new entry, the buyer’s power of purchase, threat of replacement, the power of the supplier, and competition from rivals. This helps the business unit when deciding on opening a new branch in a different location In the past five years, the company has been improving its position, climbing higher and higher in the ranks. This has led the government to award software development contracts to the company. With approvals from so many sectors that use the company’s services, more and more mobile and computer, companies are contracting the software company for their services. Its positioning has allowed it to get the best software experts to develop software’s for them. The business unit is doing very well in its sector and enjoys the backing of big financial institutions that invest in the new emerging software trends. This is because there is no software that the company releases that fails to impress. With all success that the business unit enjoys, maintaining it becomes the hard part. The software industry is a tricky industry and a business that was doing so well will flop in a minute. This arise from realize of poor and substandard products that negatively affect the reputation of a company. Thunder software has put all these factors into consideration to come up with long-term strategies that allow the company to stay on top of the industry. These long-term strategies concentrate on the staff, funding and development of the company. The business strategies have been spaced in their implementation and the strategies may change as the trends in technology evolve. They implementation is done with phases concentrating on the three aspects of the strategies. Some of the strategies that the company concentrates on are strategies that will help the company grow in a positive way. The business unit looks forward and tries to project the growth of the company. With the information that they collect from this study they come with a set of strategies that will help them achieve the projected future. One of the most important strategy that they use is securing finances and young talent for future use. In this strategy, the company invests the extra cash that it has in other long-term projects, which will pay a good amount in the future. When this money is retrieved from the invested those investments it is redirected to opening and buying new technology. In addition, the business unit invests in training and recruiting individuals who show prospects in the software industry. This strategy ensures continuity of the business and providing new and better software. Also having fresh blood in the business unit will ensure that the business is competitive and stays relevant in its industry. A well-informed staff continuously helps the business grow. Every member of your staff should be taught on the operations of the business and should be able to work in more than one department of the business. Spending time to train and retaining your best clients will help you save money and have an easier time while operating the business. The next strategy is to change with the changing trends. It is important to keep on change your mode of operations so that you can achieve growth. The only way to grow without many challenges is taking a step at a time in one direction and not letting any change challenge you. Place in your budget a section that will allow you to set aside some money for expansion. Finally, economics and budgeting is an important strategy when it comes to growth. This involves keeping a keen eye on the expenditure and capitalization of the business. It will be very important to plan when investing on new technologies and new office buildings (Mooney 2014). For future competitiveness, the company needs to build on one business strategy that will see them be successful in the future. Growth is good but the best strategy in growth is deciding the best time to grow. Having good strategies will assist you in determining the progress of your business. A good business strategy should show how certain aspects of growth would be implemented. Achieving hurried growth is simple to attain when simple innovation and growth is the primary goal. However, majority of companies choose more simple but continuous growth, which is more possible and requires less growth risks. Reference List Akkaya, FM 2013. Global Marketing Strategies. Available at: www.ekonomi.gov.tr/upload/bf09ae98-d8d3-8566.../fatih_akkaya.pdf‎ [Accessed 27/3/2014] Mark, A & Eric, L & Linda, B 2013. ‘How effective software development and delivery drives competitive advantage’, IBM Global Business Services Executive Report, p.1 Mooney, L. 2014. Good Long-Term Strategy to Grow the Business. Available at: http://smallbusiness.chron.com/good-longterm-strategy-grow-business-21606.html [Accessed 27/3/2014] Weihrich, H. 1999. ‘Analyzing the Competitive Advantages and Disadvantages of Germany with the Tows Matrix—An Alternative to Porters Model’, European Business Review, p.3 Read More