Strategic Management - The Ideology of Product Management and Company Establishment - Essay Example

? The aspect to establish competitive management is placed in the desire to articulate new measures to be appliedin the advertising venture. Products presets variable challenges and behavioural traits within the market, and their impact on consumers depend on the nature of the establishment. The strategy applied in presenting the product to the market affects the results gained within the established platform and the need to apply marketing ventures to retain a consumer trend. With the theories of marketing strategies implemented within the environment, there may be measures presented to determine the progress of the company. Basing the argument of first mover and late mover’s theories, this paper issues the careful presentation on the move to be implemented by the company to achieve progress, according to the designated task. Introduction The prevalence of the ideology of product management and company establishment is influenced by the decision of management to implement a marketing strategy. The strategy implemented should be developed after careful study of the economy and market structure to discern positive ventures. The task has been assigned as a member of the company that seeks to expand ideologies and strategies within the market, to base decisions on effective study of the market economy. The option issued has been in the entrance to the market as a new product or advancing on the available strategies in the product behaviour within the market. The two theories in first movers and late movers are the determining factors of the market behaviour as each hold varied arguments on the need to implement a desirable strategy (Frawley & Fahy, 2006). However, with the lack of intense knowledge on company business and reaction of management to the alternatives presented, both theories should be expounded on and critical analysis discussed. Both the first mover and late mover theory hold adverse benefits and setbacks, and with the careful analysis of both presentations, better choice is accorded to the company to advance in its marketing strategies. Comparison of the two theories Timing has been considered a vital entity in the quest to establish policies and products within a market. Companies need to acknowledge the need to enter at an early stage within the market or late periods to maximize on the aspect of profit articulation. Market entry has been proved as a measure that determines the rate of prevalence of the policies implemented by a selected company. The behavioural pattern of market entry has been presented to advance in the two formulated theories that are constructed from the action taken by a firm to establish structures within a region. Bresser (1998) suggest that the first movers and late movers’ theories have been developed to indicate the behavioural pattern of companies within a market (Frawley & Fahy, 2006). First movers gain the upper hand within the market with the early timing of entrance within the market when the product has not been launched before in the region. The period offers minimal competition, and maximization of profit realized with positive reaction from consumers. Late movers, on the other hand, may gain advantage through implementing strategies that the first mover had applied to advance on the presentations and gain the lead within the market. These aspects have been the variations of the two theories and a careful analysis of both theories may witness the paramount effects. First movers Advantages Firstly, the measure offers leadership and progress through advanced technology in the market, preemption of the available products, dictatorship of prices with an uninformed buyers trend. After inventing a technological progress, the advantage presented is included in attaining patents and legal ownership of products and services to retain confidentiality of their operational activities. The theory also offers access to product and services before any other company. The location of establishment may offer opportunities in products and services, and the company develops the opportunity to seek these services at lower prices and in dominant proportions. Furthermore, the company holds the advantage of selecting the desired niche to exert policies upon to lead to increased profits. The first movers may dictate the pricing strategy in the market that may influence the late movers to invest in extra costs to compete with the consumer preference. This trend may help first movers present the preference of choice to consumers that prefer the known prices and commodities as compared to foreign policies. Finally, loyalty to the company may be attained through branding products to identify with the consumers with trusted service. Buyers prefer the products that they are familiar with its operations as compared to foreign companies established later. Disadvantages The leading constraint is presented in the failure to predict technological advances within a market. With the lack of the intelligence of the right choice in technology, first movers may make losses in investing in the wrong strategy that may not appeal to buyers. The aspect of “free riders” may be disadvantageous in the progress of late movers who may spend minimal expenses on research and advancement (Henricks, 2009). This presents a loss in the market share to the first movers with the late movers gaining in intelligence. Changes in technological developments may force the first movers to conduct renewed research and increased spending to adapt to market fluctuation. The market inertia may also be disadvantageous with minimal knowledge of the needed measures to maintain the market share. This strategy may lead to decline of the company as it may lack the necessary response to accord within the market to install the needed advances. Late movers Advantages The late movers avoid the need to incur extra costs in conducting research because the first movers would have covered the advancement of the ideology. These accords the opportunity to eliminate barriers faced in the first movers’ establishment. The late movers are presented with the opportunity to utilize the technological venture applied by first movers. They are capable of making adjustments in the needed regions because they would incur fewer costs. The companies can avoid mistakes in technology and apply the needed measures to offer competition to fast movers. The advantage they hold is offering the best competitive technology within the market from observation of the failures of fast movers (Jagpal, S., & Jagpal, S., 2008). The companies may also present better advertising strategies to attract a consumer group that favour their engagement. They may also advance n the products or establish developed substitutes to gain the needed market share. Disadvantages The leading disadvantage is late market entrance that is projected on the lowered profit margins. The competition is also placed on the failure to dominate the market after the first mover has attained a higher market share. They may then fail to progress. Profit generation and progress may also be impaired for the late movers if the first movers protect their products through legal attributes and patents. Loyalty of brand may eliminate the progress of ate movers as consumers prefer to acknowledge products they are familiar with in the market. Examples (success) First Movers Microsoft, the developers of the first computer operating system with consumers preferring their system Procter and Gamble with the invention of disposable diaper Coca-cola soft drink company Xerox introduction of photocopiers Late Movers Pillow Pet Replacement of Dreft as the leading detergent with Tide Bright Star replacement in the flashlight battery supply by the Eveready company Vodoo Tiki Tequila emulating the trend by Patron (Henricks, 2009) Examples (Failure) First Movers Bomar invention of calculators Sony’s VCR Docutel’s failed ATM machine Apple’s introduction of first hand held computers failed to dominate the market with success in Palm Late Movers Lowe’s failure to progress in Home Depot industry Natura cosmetics failure to establish national dominance Estee Launder Jollibee’s failure for global competition with McDonald’s Recommendations The recommended strategy to be applied in the market would be to adopt the first mover policy. This is because of the increased profit generation within the market as a first mover and acquisition of initial resources with opportunities. Customers can be retained with better services and ownership generated through patent rights. The policy of taking risks within the market would aid in presenting dominance as compared to presenting similar products. With the presentation of early research and satisfaction of consumer demands, the company may succeed with the avenue that offers minimal competition with increased profit generation. Late movers are presented with minimal opportunity to progress with the delay in exploiting available resources within the market (Jagpal, S., & Jagpal, S., 2008). Therefore, the company should introduce new products within the market to establish the prizes and market behaviour after satisfaction of consumers. Technology in Business Technology is vital in the articulation of information and development of strategies to deliver success. Technology has been placed in the research of the market trends and provision of information that is needed to gain market share. With the careful analysis of the consumer pattern, the strategy may help in communication through internet, and especially social networks. Technology offers the solution for convenient purchase through online purchase and easier pay in wire transfer. Good business practices involve presenting customer satisfaction without breaking the ethical behaviour in health and profit analysis. With poor planning and satisfaction of employees, the business may be incapable of effective performance. References Bresser, K. R. (1998). Strategische Managementtheorie. Berlin: Walter de Gruyter. Print. Frawley, T., & Fahy, J. (2006). Revisiting the First-Mover Advantage Theory: A Resource- Based Perspective. Irish Journal Of Management, 27(1), 273-295. Henricks, M. (2009). When second really is the best. Entrepreneur, 37(6): 71-77. Jagpal, S., & Jagpal, S. (2008). Fusion for profit: How marketing and finance can work together to create value. New York: Oxford University Press. Read More