MGM465-0801A-05 Business Strategy-Phase 1 Discussion Board - Essay Example

Business Strategy Introduction Able Corporation is a company that is specialized in the production of electric power tools. The major products are portable tools. The company is an old family owned business in United States. “Able Corporation is an old and venerable American manufacturer of a full range of portable electric power tools (PEPT)” (Brain mass, 2007). The products of Able Corporation are supplied to both industrial sectors and for consumer usage. Among the various products of the company only circular saws enjoy a good market share.

Rest of the products has only a very minute market share. Those products are also low in terms of quality and that is one of the reasons for its lower market share. The company uses very outdated technology for production. There is no room for improvement of the existing plant due to the shortage of funds. Since the company is still owned and controlled by the family members there is limited mobility of capital and other funds in the company. Shortage of funds has prompted the company to play in the market with the existing facilities and strategies.

The company has less strategy for improving the competitiveness of the products. The rivals of Able are competent enough that it even grabbed the market share of cordless products which was first introduced by Able Corporation. Now the company is in the process of being acquired by another company Walden International. “Walden International Incorporated (Walden) is interested in buying all of the assets and liabilities of Able Corporation (Able)” (Graves, 2007). Walden International is a highly specialized business firm and the upcoming acquisition is supposed to benefit Able Corporation to rejuvenate.

“Founded in 1987, Walden International is an established global venture capital firm” (Walden International, 2008). Walden International has formulated certain strategies for improving the market of Able Corporation. The strategies of Able Corporation for the coming years can be enumerated as follows. Strategies of Able Corporation in the future1. The first strategy is to improve the market share through the product in which they are specialized. That is it is Able Corporation who introduced the cordless products for the first time in the market.

Therefore, when the company invest more in improving the quality of the cordless products and establish better marketing strategies it will be able to recover the current position. Redesigning the existing cordless products will improve the acceptability of the products in the market. When the Company gets acquired by Walden International a brand change in the products of Able will be made. This will change the poor reputation that Able was facing. All the products especially the cordless products will be rebranded by Walden in order to make the product move in the market.

Higher production will be adopted in order to reduce the cost of production. 2. The second strategy of the company is to introduce an online sales portal or an online outlet. This will help the company to reach a wide market with limited cost. Opening a retail outlet across the country or distributing the products through many retailers will cost more for the company. Therefore, the strategy of the company to establish online store will help to reduce the cost of distribution. Online store also provides wider market compared to the normal retail outlets.

For example a retail store in Texas will have access to the customers in Texas only. But the customers of any location can purchase the products very easily through online store. ReferenceBrain mass. (2007). Problem: Scenario. Retrieved January 13, 2008, from http://www.brainmass.com/homework-help/business/other/149828Graves, Chris. (2007). Walden International Acquisition. Locohelp.com. Retrieved January 13, 2008, from http://www.locohelp.com/2007/12/walden-international-acquisition.html Walden International. (2008). Funding global innovation.

Retrieved January 13, 2008, from http://www.waldenintl.com/main/index.asp