GLO-BUS Strategic Plan GLO-BUS Strategic Plan Our company employed a low-cost organization strategy. We are striving to accomplish minimal overall cost than opponents and appeal to a wide variety of customers, usually by underpricing opponents. Attempting to be the sector's overall low-cost provider has been a highly effective competitive approach in this market as there are many price-sensitive customers (Cunningham & Harney, 2012). We achieved a low-cost leadership and became the sector's lowest-cost organization, capitalizing on the lack of opponents with relatively low costs. Our strategic focus is meaningfully reduced costs than rivals -- in terms of affordability. In seeking a cost advantage over opponents, we incorporated features and services that customers consider essential. For highest possible efficiency, our company achieved the cost advantage in ways difficult for opponents to match or copy. If opponents find it relatively easy or affordable to mimic our low-cost methods, then our cost leadership advantage will be too short-lived to generate a useful edge in the market.

Using this strategy, we had two options for translating a low-cost advantage over competitors into attractive revenue performance. In the first option, we used the lower-cost advantage to underprice competitors and attract price-sensitive buyers in great enough numbers to improve total earnings. The profitably trick by under pricing competitors was to keep the size of the cost cut smaller than the size of the company's cost benefits. Secondly, we could also maintain current price, current market share, and use the lower-cost advantage to earn a higher income margin on each device marketed. These could raise the company's total earnings and return on investment (West, Ford & Ibrahim, 2010).

2.

The company focused on three defensive strategies to improve its market standing and financial performance. Because of continuous competition, we needed to engage in defensive techniques to fend off the various competitors. The primary objective of defensive technique was to make a possible attack unattractive and prevent potential competitors from fighting our company (Cunningham & Harney, 2012). We tried to shape an expectation about the industry's productivity and convince potential competitors that the ROI will be so low that it does not guarantee investing in that market. This defensive technique worked better because implemented it before the opposition made an investment in the market.

Continuous Improvement

A continuous improvement approach called for a persistent pursuit of enhancements item quality, costs, manufacturing processes, product development, and distribution. The choice of improvement areas depends on the value proposition of our organization. As a low-cost provider, we consistently tried to figure out methods of reducing costs through scale economies, cutting expenses and presenting new production methods. We are a differentiated; hence, we sought methods to maintain our competitive advantage through quality improvements, innovation, and new features.

Signaling

Our third strategy was signaling. We used this approach declaring our intention to take an action. We made announcements through press releases, interviews with the media, trade publications, speeches, and newspapers. These announcements served different goals. They signaled dedication to the market and therefore tried to preempt or prevent opponents. As a defending firm, we effectively kept potential newcomers out of the market by using the risk of retaliation. Such a higher perceived possibility of retaliation and its degree of intensity translated into a lower prospect of an attack by the opposition. We improved our popularity for rigorous retaliation by the manner in which we responded to previous attacks that signaled our commitment to defend our market share.

Defend Position Before Entrant Becomes Established

When we entered into this industry, our objective was to be established first, consolidate our position, and then start expanding. New entrants are especially dangerous if they get into the industry by breaking the guidelines of the game with drastically new items, or enhancements in costs, delivery, distribution, service, and positioning. Newcomers coming into this marketplace with drastically new items usually come from unrelated marketplaces. As an established business, we need to protect our position while the recently joined competitors are small and insecure rather than patiently waiting until they become strong and a serious risk.

3.

Think local, act local

Design is all the more important in the global digital market. This is because customers in this market expect a wide range of offerings and short innovation cycles. Long gone are the days when companied could impose a premium fee on products sold in foreign markets. As such, we tweaked our current product lines for local market sensibilities. To succeed, we not only needed to understand the local and regional tastes, but also to design our products according to each local market. We hired local designers in each market...

In our company, we embodied the perspective that the world is a single market. In thinking global and acting global, we customized our marketing strategies to different world regions according to national, regional, and cultural differences to serve specific target markets (Lewis, 2007). For us to standardize our marketing mix, our strategy grouped countries by economic, cultural, political, technological, and social similarities. We believe that we must be more global if we hope to compete. We had to shift from a business that our foreign operations as secondary, to an organization, which sees the entire world as a single borderless market.
Think global, act local

In this approach, we adopted a global viewpoint to formulate our vision, objectives, and strategy. However, we made adaptations in each market based on the culture and market specifications. Setting a global vision helped us our primary business objective, which is profit maximization via extensive market expansion across continents and countries. Our strategy had to be flexible because markets differ in terms of religion, political, culture, and standards of life (Hitt, Ireland & Hoskisson, 2007). If a company tries to adopt a rigid strategy in different regions, it could lead to customer misunderstandings and contradictions. This would translate to ultimate failure of the business in that market.

4.

Shifting resources became necessary because we sought to increase the effectiveness of some areas. Successful strategy execution is always characterized by frequent changes in any area; though difficult, they are a vital component of the strategy implementation process. In our case, we realized the production software could best perform independently, so we shifted all human resources to the design department.

5.

Our business contributes approximately $500,000 yearly to a variety of educational, environmental, and humanitarian courses (Werther & Chandler, 2011). In terms of kind funding, we donate vital and important goods and services to the needy population and non-profit organizations. Both types of philanthropic giving tend to indicate our corporation's primary competencies and business priorities towards the community.

I would explain to the shareholders that since our business is an integral component of the society, it is obligated to contribute to the community needs. Shareholders must understand the CSR is a good thing. It may be complicated to make a consistent argument for how our philanthropic practices contribute to a business strategy. In general, these actions improve our popularity in the community and offer a degree of insulation from unexpected threats (Werther & Chandler, 2011).

6.

We employed Consensus decision-making design. This design means that every member of the team had to buy into the decision. The leader transferred control to the team. Compared with the decentralized, collective, and autocratic participative styles, the leader was no longer accountable for the decision and its repercussions. The apparent advantages are team spirit, dedication and a great volume of ideas and information, which usually leads to a higher possibility of success. This quantity of input and information is also its major drawback because it could take considerable effort and time to get everyone on board and organized. Failing to do so can mean a switch to the decentralized, collective, and autocratic participative styles.

Recommendation

As a cost leader, the company should not ignore the need for differentiation. Drawing from Porter (1980), for Champion Cameras to succeed with its low-cost strategy, it must acquire a high relative market share. As suggested by Hitt, Ireland and Hoskisson (2007), the company can accomplish this through a differentiation strategy - higher quality. This involves competing more on the ground of differentiation rather than low cost. The company could also adopt various aggressive marketing strategies besides the lowering of prices. They should seek to ensure that its product is known to a wider market and that clients are aware of its advantages over other cameras in the market. Occasional discounts on the same might help unlike the total lowering of prices.

References

Cunningham, J., & Harney, B. (2012). Strategy & strategists. Oxford: Oxford University Press.

Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2007). Strategic management: Competitiveness and globalization: concepts. Mason, OH [etc.: Southwestern.

Lewis, P.S. (2007). Management: Challenges for tomorrow's leaders. Mason, OH: Thomson/South-Western.

West, D.C., Ford, J.B., & Ibrahim, E. (2010). Strategic marketing: Creating competitive advantage. Oxford: Oxford University Press.

Werther, W.B., & Chandler, D. (2011). Strategic corporate social responsibility: Stakeholders in a global environment. Los Angeles: SAGE.