1. Consumption economics – how does this alter the process of resource allocation in developing strategy?
We studied how three factors indelibly altered the IT infrastructure landscape in the “Consumption Economics” module, and the lasting impact on the way that customers approach purchasing and using IT. During that lecture, several rhetorical questions were posed about how this new model of consumption would alter the process of product development. The questions are no longer rhetorical. Looking at the model of consumption economics, and using other models from throughout the course (Five/Nine Forces, etc.), discuss how an IT infrastructure firm can gain and hold competitive advantage in this environment, and whether it is different from how to establish and maintain competitive advantage in a traditional, product based model.
Answer:
The three things, namely, cloud computing, consumerization of IT and the downturn of global economy have questioned the basic business model under which the tech-based companies have been operating and making profits until now. The disruption that the cloud is bringing in, can either help deliver the full potential of technology or on the other side it could accelerate the commoditization of technology - all depending on how the companies reinvent their business framework.
Earlier, the IT infrastructure companies used to make profit through a product based model which included setting up of infrastructure, implementation and integration of their product into customers’ existing system. And till this stage, it would already have cost the customers 70% of their total budget for the implementation of the new technology. And by the time customers get fairly acquainted with the newly insta...
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...al time analytics instead of historic data or future assumptions. Same is true for Porter’s five forces BCG matrix and competitive radar, which would now reflect real time information and accurately keep track of the competitors with their latest offerings in real time.
5. Jobs to be done and strategy formulation
A recurrent theme throughout the semester is that the “job to be done” is the central element of strategic analysis and formulation. Discuss whether or not you agree with this premise, particularly regarding market segmentation. Draw from other modules (such as the Bowling Alley/Tornado/Main Street) from the class this semester to support your case, and use examples from industry to illustrate your points.
Answer:
Job to be done is definitely the central element of strategic analysis and formulation which effects the innovation process of companies.
Wheelen, Thomas L. and J. David Hunger. Strategic Management and Business Policy, 13th Ed. Upper Saddle River, NJ: Pearson Education, Inc., 2012. Print.
Wheelen, Thomas L. and J. David Hunger. Strategic Management and Business Policy, 13th Ed. Upper Saddle River, NJ: Pearson Education, Inc., 2012. Print.
& J. D. Hunger (12th ed.), Strategic management and business policy (pp. 29-1 – 29-23).
Discuss an assessment or evaluation strategy which may be used to help determine the marketing potential of an organization.
According to Parnell, Porter’s generic strategy typology consist of a “basic economic assumptions about cost versus differentiation, and the whole notion of focus and market orientation but this strategy has some limitation” (2014). This strategy typology helps to simplify a complex industry by identifying and emphasizing the key strategic factors. These factors are low-cost with focus, low-cost without focus, differentiation without focus and differentiation with focus.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
• Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005.
To further shore up his "IT as commodity" theory, Carr cites the fact that major technology vendors, such as Microsoft and IBM, are positioning themselves as "IT utilities," companies that control the provision of business applications over "the grid." Couple this IT-as-utility trend with the rapidly decreasing cost of processing power, data storage and transmission, and even the most "cutting-edge IT capabilities quickly become available to all."
The second strategy is Market development strategy which focuses on selling the existing product in a completely new market. The organization targets the new geographical area, region which share the same demographic profiles than in the home country. The organization does not have to make a huge change in the product nor they have to change their marketing strategies. There are few of the following ways through which this could be done:
Individuals make economic decision based on a variety of reasons. The rational is based on each individual’s need or desire for a commodity. People go through several decision-making processes before making the final decision and are often not conscious of the process. Obviously, decision- making covers a wide area, involving virtually the whole of human action. Often people are not conscious of the process.
...ompletes an analytical assessment of a firm. A firm establishes its competitive building by investing scarce resources again and again in its value-added activities. By doing this the organizations will be able to give rise superior products and services that the buyer's desire and continue to grow the business and adhere to its strategic plan once implemented.
Fourthly, the market development strategy is a target with different segments in order to enter the markets around the world. The international expansion has as
Without a successful business strategy put in place the company would fail and be unable to compete with competitors. There would be on way of knowing what resources are required. No planning for the future of the business. If there are no targets set out to achieve there would be no way of measuring how successful the company has been.
It is important for organisations to achieve their goals, as this can assist them to reach a competitive advantage, which is a highly attractive position for a firm to be in.
Strategic implementation is a critical factor when making decisions regarding issues that affect the vision, mission, or objectives of an organization. Strategies are often implemented in accordance to the culture of the organization, the nature of control systems, the stakeholders, and the nature of the organizational design. In order to achieve success in the implementation of strategies, the structure of these factors must work in coordination with one another. For instance, the strategic vision of CPK lies in the creation of a globally recognized brand name and therefore, all of the goals and objectives of CPK must be directed in realizing that the company achieves this objective (California Pizza Kitchen 2011). Furthermore, the vision statement is inclusive in itself in that it communicates the message in a directional, flexible, and focused manner.