The aim of this work is to define the best growth strategies for the company SystemSoft, and state on their suitability. Through the help of the Ansoff matrix three major strategies are going to be kept for SystemSoft Corporation.
Question 1:
Each company are faced by external business environment that is constantly changes, in particular technological organisations. Those changes can be minor, e.g. regulations, new small firms entering the market; however some changes can have a huge impact and consequences for a business; e.g. new technologies, fusion between two considerable competitors, or consumers changing tastes. All those alterations can create both opportunities and threats to a company’s strategic development and so have to react.
SystemSoft, being in the PC industry is faced with technological changes and have to innovate continuously to keep his technological leading position.
Strategic analysis of Systemsoft:
Systemsoft core products are based on three major lines: BIOS, Pc card and Power management. They are leading the Pc card market with 64% of market share, but in high competition for the BIOS and power management markets with only 20% market share.
“Its strategy was focused it technological leadership, strategic alliances, key customer relationship, further expansion into the desktop market and finding more markets for PC card software and power management technology.” (Case study)
Since 1991, SystemSoft is experiencing a huge growth. But since the company has been public in 1994, its has been facing some problems regarding growth strategies.
Ansoff's matrix is one of the most well know frameworks for deciding upon strategies for growth. Marketers who have objectives for growth use it. Ansoff's matrix offers strategic choices to achieve the objectives. There are four main categories for selection. (A.Aker)
Ansoff's Product/Market Matrix
This well-known marketing tool was first published in the Harvard Business Review (1957) in an article called 'Strategies for Diversification'.
MARKET PENETRATION:
Here Systemsoft has to market his existing products to his existing customers, or attracting consumers of their competitors or could convince consumer who are not attract on their product to be.
Increase their market share
Going for market penetration involves SystemSoft to improve their competitive position. As stated in the case study SystemSoft is leading the Pc card market with 64% of market share, but is in high competition for the BIOS and power management markets with only 20% market share. The company can expand those two core products by innovating or if enough resources could buy Pheonix Technologies who is their only competitor, which has developed all the software that Systemsoft working on.
It has come to my attention that the functionality of my computer system is quite limited for the company’s day-to-day actions. It gives me great honor to propose, a new set of systems that will replace the dated systems that I currently use to complete my job. I am confident that these machines will allow me to think of new creative, ideas that will create new innovative marketing strategies for the company.
Over the past two years, WRSX have changed their strategy which has caused a strategic drift. Moreover, when spotting the new opportunities and receive better information, WRSX has changed their intended strategies which were already established in the strategic choices. The changes experienced by WRSX were made in order to increase the share price and to boost performance indexes. The agreement not to expand in new market was changed by collaborating with Asian SMEs, In addition, the company drifted from intended strategy of being multi-divisonal and implement the concept of matrix structure.
There were several reason for the rapid growth of SAP America during mid and late 90’s. Throughout the evolution, the parent company of SAP America, SAP AG, wishes to provide a better product based on the evolution of technology as well as based on the changing customer needs, and thus invested consistently on R&D activities. 20-25% of SAP AG’s gross revenue were re-invested in research and development. In fact, almost one quarter of the company’s employees were working on research & development activities. Adding to the point, they carried no debts over a period of time as well as they didn’t book revenues until product delivery to customers.
The company should acquire more companies in the Asian markets, like India, Pakistan and China and expand in these areas because these markets are still developing. The company has a good chance of growth because the labor of these countries is very cheap. The company can focus on all the strategies mentioned in the strategy alternative part because they can be adopted at the same time. Two of the strategies are related to the marketing campaign and positioning of the company, while the last one focuses on the expansion which should be the global agenda of the company.
Development strategies help the management to balance the resources according to the market opportunities in each business area. Top managers responsible for formulating the corporate strategy should look several years ahead to choose the right and consistent direction for the organization that will accomplish the organization’s long- term goals. There are two main types of strategies based on stability and diversification principles. While in stability strategy, management keeps the status quo if the company is doing well and does not take risks associated with more massive growth, diversification strategy, on the contrary it tries to affect growth through the development of new areas which may differ from current businesses.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
Ansoff’s model is one of the strategic techniques that an organisation can use to achieve a competitive advantage. Analyse this technique.
Olsen, E. (n.d.). Strategic planning: Diversification. Strategic planning kit for dummies, 2nd edition. Retrieved from http://www.dummies.com/how-to/content/strategic-planning-diversification.html
Williams, (1997) identified four steps to system planning. Earl (1989) proposed five alternate strategy frameworks which project managers should consider when deciding how the system will enhance the business function. Standard business strategy methods are used to identify such opportunities by using: value chains, application searching and information analysis (Earl 1989).
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
Marks and Spenser alternative for the substantive growth can take the following strategies, horizontal integration, related diversification, vertical integration and unrelated diversification.
A system perspective will be required to specify the level of strategy and the relationship of the strategy to the offer of strategic management activities. Therefore, the organisation level and orientation and corporate level should be carefully considered. This perspective concerns a single business type and its markets. Therefore, it is quite different from the corporate perspective especially when considering the different types of business once the divisional level strategies have been developed mirrored continuously down the organisational chain to the organisation within a particular division.
...d to learn from the chess game in terms of the ground rules and specific strategic management points of views. There are three common strategic principles and management expertises that the corporations need to be aware of and follow. First of all, it is highly advisable for them to conduct a macro environment evaluation through resorting to the PESTLE Analysis and the Porter’s Five Forces Model. Second, it is of significance to carry out self evaluation analysis with a view to better understanding the firms’ own advantages and capabilities through using SWOT Analysis. Last but not least, the corporation is advisable to conduct an all rounded competitor analysis in order to gain a detailed acknowledgement of the current circumstance possessed by the major competitors so as to assist them to generate a better corresponding strategies in the future business operation.
This strategy is very much about the business which is carried out as usual. In this strategy the marketer is focusing on both the product and the market opportunity.
One of the largest technology company in the world, Lenovo had a humble beginning as a small Chinese firm founded in 1984. The company showed modest growth throughout the rest of the 20th century. It wasn’t until the company’s acquisition of IBM’s personal computer business in 2005 (Martin, 2014) that the company began to gain prominence in the technology industry. Lenovo’s innovation and strategic decision making has allowed the company to evolve on a global platform and enabled it to become one of the leading technology companies in the market today.