The corporate level strategy also ensures that the values and expectations of stakeholders are understood and taken into consideration when developing a strategy. In the case of Clearsky, stakeholders such as customers and investors expect that the company will take the appropriate risks as it pertains to positioning the company for success. Sixty percent of Clearsky is publicly held while the other forty percent is owned by the Singapore's government. With this understood all of these investors and customers expect the company to make decisions that will secure its future. The recommendation to use the services of another vendor is necessary because the company must remain competitive.
In addition to Corporate level strategies business level strategies must also be taken into consideration.
"Business level strategies are essentially positioning strategies whereby businesses tend to secure for themselves an identity and position in the market. The aim here is to increase the business value or the corporate and stakeholders by increasing the brand awareness and value perceived by the customers. If we understand products or a services offered by a business unit as a deck of cards, then we can safely decipher that businesses do not have many suits to play with."
This level of strategy also necessitates that the company places a great deal of emphasis on wither pricing or product differentiation. Concentrating on these two factors leads to an increase in customer value. This strategy level also requires a great deal of analysis that requires a great deal of skill and experience.
As it pertains specifically to the case study, at the business level Clearsky is seeking to be on par with competitors as it relates to the types of services that are offered to passengers. As such the company must meet the demands of current and future passengers by ensuring hat wifi service is available. In doing this the company will remain in a position that does not cause its market share to be diminished.
The final level is the operational level. This level is associated with "successfully implementing the strategic decisions made at Corporate and business unit level through optimal utilization of resources and competencies of the business unit. This level of strategy is extremely significant in shaping the success of other strategies as it translates strategic decisions into strategic actions by directly impacting the design of operational processes and networks, human and other resources etc."
For Clearsky this final level of strategy involved ensuring that all employees understood the role they would play in the implementation process. Without the work of dedicated employees none of the decisions made at the corporate or business level can be properly implemented.
Five Forces
This recommendation also took into consideration Porter's five forces. These five forces include the following:
The threat of substitute products or services- This force is of significant concern because Clearsky passengers clearly have other alternatives as it pertains to who they choose to purchase airplane tickets from. All other things being equal. A customer might decide to go with another carrier if the attribute that distinguishes the carrier is the ability to access the internet in-flight. As such Clearsky would be at a pronounced disadvantage if it ignored the threat posed by substitute products or services. In fact the entire business could collapse if this threat is not taken seriously. The proposed solution to the problem that Clearsky faces addresses the fact that consumers have alternatives available to them that would exceed the services available to them by Clearsky fails to allow in-flight access to the internet.
The threat of the entry of new competitors- this particular industry is not susceptible to new competitors entering quickly or without prior knowledge because the barriers to entry are rather high. More specifically, entry into this particular market requires a great deal of capital and takes a great deal of planning. As a result this particular threat was less of an issue as it relates to making of the aforementioned recommendation.
The intensity of competitive rivalry- In this industry competitive rivalry is quite strong. A major part of the decision making process for this case involved the strategy of Clearsky's arch rival. Because of the manner pf competition Clearsky has to take the risks associated with using a different vendor. This risk is acceptable because if Clearsky fails to present customers with access to in-flight internet Clearsky's chief rival will likely gain a substantial portion of the company's market share. In some ways the intensity of the rivalry in this case forces Clearsky to make a decision quickly. Too much hesitation will give
Action The importance of creativity and innovation in the workplace is well documented, but the debate over nature vs. nurture continues with some authorities maintaining that people are born with attributes such as creativity and innovation while others argue that such attributes can be inculcated over time (Furnham & Heaven 1999). To determine the facts in these matters, this case study examines the relevant literature to gain some fresh insights
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