Many strategies that are available for companies
There are many strategies that are available for companies to adapt that are adopted by companies for growth. During growth faces, organizations try to adopt competitive strategies, which are positive for organization growth. Competitive strategies include, cost differentiation, product differentiation, vertical integration, geographical expansion and retrenchment (Weitzel, W. & Johnson, E. 1989 and Wernerfelt, B. 1984). 2. 0. Collection of Secondary and Primary Data
In this research internet sources, books available for the topic have been used the computer lab has played an important role in accessing scholarly written sources available on the internet. Therefore the process of gathering articles and other forms of literature was done by frequently visiting the university computer laboratory and the library. 2. 1 Strategic analysis A company will be performing out performing its rivals in the market and their strategic position is well stabilized if proper strategies are adapted. The debts levels of the company are always kept low if they want to be successful in the market.
The key reasons for successes of companies are that they focus on their weaknesses and strengths, threats and opportunities they also try to minimize them. However threats related to economy and competition always remains major factor to most companies. A company should continue to offer products and services to consumers at competitive prices and also capturing new customers to gain market share. Horizontal, vertical integrations, between department managers, corporations, supplies are important to make the company profitable (Tan, H. & See, H. 2004).
Companies should have strong brand products which reduces the barriers of entry and helps them to enter foreign markets in all continents, to achieve organization’s international strategic objectives however it has been very difficult to operate at first because product should be launched in all languages in order to gain them market share. However the level of competition will be high because the international market has many competitors. There should be diversifying in range of its products to meet the users’ needs across the world using the following key success factors.
2. 1. 1 Possible Strategies There are many possible strategies for companies to use while diversifying in the market. The strategies used include;- 1. Diversify products to meet the needs of peoples in all the countries they operate. 2. Expand products in all countries 3. Reduce the cost by outsourcing business activities to parts of the world where labor is cheaper in order to remain competitive in the market. 4. Enter into joint venture or acquire rights in companies with similar products in various parts of the world to increase market share and reduce competition.
5. The companies should investment in technologies so that they can produce a differentiated product. 6. The company should expand its product/services to various parts of the world 7. The company should adopt differentiation strategy where there is cost leadership and product differentiation; this will increase revenue for the company and increase the market share (Numfor N. and Ajang P. E. 2007). 2. 1. 2 The five Ps of strategy Strategy as a plan is a consciously intended course of action, a guideline to deal with situations.
For example, strategy as a plan in management is a unified, comprehensive and an integrated plan designed to ensure that the basic objectives of the company are achieved. In order to use a strategy to achieve a company’s objectives, a ploy is required to achieve the said objectives. For instance a multinational company wants to expand its market in another country in order to prevent the threat of competitors’ entry that market. So the real strategy as plan is the threat of entry and the strategy as a ploy is the expansion of the market.
Viewing strategy as a plan or as a ploy illustrates that a strategy can be either general or specific. These perspectives of explaining what strategy is means that strategies are intended, of which they are not only intended but also emergent. Therefore, there are another ways in which strategies can be defined. Strategy as a pattern is as a stream of action, that is a consistent behavior in which things are done in an organization and this consistency in behavior can be intended or not( Ackoff, R. L. 1979). This perspective indicates that strategy can also be emergent.
Furthermore, strategy can be seen as a position, which is a means of locating a company with its environment. This means that referring to this perspective, strategies are used as a mediating force between the company (internal context) and the environment (external context). Strategy as position aims at matching the internal to the external, but strategy as perspective concerns the internal context of an organization. That is how members in the organization share their perspectives to other organizational member through their intentions or actions (Johnson G, Scholes K and Whittington R, 2006).