Q7.3) The pizza shop is located in the middle of the region with a huge population of students. Firstly, it must align its strategies towards the production and delivery of cost-effective, health, and fresh pizzas. Furthermore, H&H pizza must adopt a focus strategy to strengthen the business model. Focus is a competitive approach that helps the companies to focus their resources on growing the barely targeted sector (Kavulya, Muturi, Rotich & Ogollah, 2018). Also, H&H pizza can adopt the focus strategy in terms of low prices and providing the finest value. While the finest values focus approach is accepted by focusing on the experience, volume, and design of the product that could go with the need and desires of the customers. The company can also focus on product quality by revising its branding tactic and bring incessant alteration in the design and packaging to please the consumer’s emotional outlook and increase the value for money. Also, the horizontal merger can be used by the managers as it reduces the threat of competition in the market. The particular will help H$H pizza to acquire other businesses in order to capture a large market share in the most effective manner. The strategy will provide an opportunity to focus more on the quality of the product.
b) Harda limited must the combination of strategies to improve the business model. One of the most effective strategies is to limit the price of the new product. The limiting price strategy helps to increase the market share in the most efficient manner. Furthermore, strategic commitment can also be used to attain the desired results more effectively. These decisions will have a long term impact on the company. All these strategies will help the firm to successfully enter an established market.
Q8.3) Date: 12/6/2020
Subject: strategies to hold market share
I would like to express my happiness with the company’s growing market share. I am writing this to inform you that some of the matters may affect the long term profitability of the company. I would like to share some assumptions that can affect the profitability and long term sales of the company. The intensifying competition and changing market conditions can influence the effectiveness and availability of our products and services. As the company is new in the market so it should consider the technological shifts, competitor's strategy as these changes may affect the overall market share of the company. Also, in today's technology supported business. Disruptive innovations are happening at a faster pace so it is highly essential to identify the changes in order to become effective and efficient.
To avoid being displaced, the business must invest in technology and market research. In the current stage, the business must try to conduct market research in order to understand whether the customer prefers the products over competitors (Boschma, 2017). The next major supposition is the faith that customers will be eager to purchase your goods or services, make enough sales to make income for the long run. I believe that the company either chooses a pricing approach to make high sales volumes by selling at a low cost or capitalize on profit margins at an elevated price. It is necessary to understand that the product is new in the market and many established players may affect the overall market share. In this stage, the appropriate promotion and advertising strategy may be required to target a large market share.
I have listed some suggestions which can also help to improve the current practices. Please let me know if you have any questions.
Q9.3) Branch development, augmented consumer base, shared information, and resources, collective technology, an extensive scope of procedure disclose that the private firms stand to achieve the most from entering into strategic alliances with probable competitors. While many brick and mortar stores have folded due to lack of client base, the few that have shaped strategic alliances have sustained to flourish. One instance would be Barnes & Noble, associating with Starbucks. Businesses choose to shape strategic international business association for numerous reasons. One of the most imperative bases is to gain access to a new company's acquaintance or wealth. Companies can also choose to link forces to enlarge new food or to penetrate a market that neither could enter alone. The companies that shaped these strategic alliances did not distribute much in common before their corporation. The one ordinary point might be the client base, albeit an indirect association in most cases.
Firms make strategic coalition for a range of causes from creating economies of scale to increase into the new marketplace to pooling risk. These businesses agree to strategic alliances to get new knowledge and the greatest quality at the cheapest price. Some businesses may discover that the monetary risk that is concerned to pursue a novel creation or production process is too enormous for a sole business to undertake. In such cases, two or additional business come collectively and concur to spread the threat among all of them. Many not-for-profit associations are inadequate in capital and skills. So, they discover that a strategic coalition is an outstanding method to better serve their customers. They can shape a company with others who also need assistance and offer what is desirable for all. Small business understands the shared payback they can get from the strategic coalition in the area including advertising, allocation, manufacture, research and development, and outsourcing'. By shape a coalition with other businesses, small companies are capable to achieve greater projects more quickly and efficiently.
Q10.2) Horizontal integration might be conflicting with the objective of maximizing productivity when the two businesses have dissimilar goals (Helfat & Rembado, 2016). Horizontal integration is very tough to execute and can lead to an augment in cost and exploitation of the market control when it clashes with the federal trade commission. As a corporation grows superior with horizontal integration, it might turn too inflexible, and its actions and practice may turn into unfriendly to modify. This could prove precarious to it. Horizontal integration can even result in unconstructive synergies which diminish the overall worth of the trade, if the better firm becomes too heavy and inflexible to administer, or if the amalgamated firms face troubles caused by different management styles and business traditions (Luck, 2019). Each business will have to decide the alternative more appropriate to it, base on its exclusive position in the marketplace and its client value propositions. A deep investigation of its strengths and possessions will assist it to make an accurate choice.
b) The industry value chain comprises all of the value-creating actions within the entire industry, start with the vital raw material and concluding with the release of the product. The interior value chain of a business comprises all the value-creating actions within that precise firm (Casarin, Lazzarini & Vassolo, 2019). Vertical integration makes sure that a business works together with the contractor of its raw resources or distributors. Vertical integration eradicates a few mediators to enlarge the range of your contribution to supply chain actions. It merges your hold on the supply chain activities in your business area. Both vertical integration and industry value chains relate to internal and external supply chain behavior in the industry. The maximization of value from supply chain activities is the ordinary denominators that underline the aims of vertical integration and industry value chain.
Q10.3) There are numerous value creation actions must a company outsource to free suppliers. These actions comprise sourcing of industrialized parts, superior manufacture resources as well as upgrading and enlargement of improved lines of creation. The riskiest type of action to outsource is one that influences the association among a business and its employees. Outsourcing the human resources job, for instance, can influence employee-hiring worth; outsourcing payroll and profit processing can result in information contravene that produces stealing issues and resulting in lawful issues; or outsourcing software design can produce refuse in organizational modernism (Sen, Kotlarsky & Budhwar, 2020). Also, product excellence threat and monetary risks are linked with the sourcing of industrialized parts. This risk is augmented when the third-party business tries to cut corners or utilize cheaper resources. Such practice can be harmful to the corporation and may considerably decrease trade, besides your brand equity.
Irregularly, duty, shipping expenses, and other concealed fees may get out of power several 3PLs have manifold hidden expenses, such as cataloging, pick and pack, boxing, and more. Any understanding with trader has elements of threat concerned with it; though, risks linked with sourcing globally are habitually higher. The inference of a superiority failure from a global source is much harsher than a quality breakdown from a domestic foundation. With the lead times concerned with transport merchandise from global sources, serious trouble can happen and it can take numerous months to correct the problem. Transport points, expenses, and risks are typically superior to domestic sourcing as an effect of the long way. Supplies might be intermittent by political unsteadiness, requiring recognition of substitute sources. Preferably, to reduce their risk experience to the above factors, the corporation should examine a balanced sourcing approach in which combinations of international and domestic sources are used.
Boschma, R. (2017). Relatedness as driver of regional diversification: A research agenda. Regional Studies, 51(3), 351-364.
Casarin, A., Lazzarini, S. G., & Vassolo, R. S. (2019). The forgotten competitive arena: Strategy in natural resource industries. Academy of Management Perspectives, (ja).
Helfat, C. E., & Campo-Rembado, M. A. (2016). Integrative capabilities, vertical integration, and innovation over successive technology lifecycles. Organization Science, 27(2), 249-264.
Kavulya, P. W., Muturi, W., Rotich, G., & Ogollah, K. (2018). Effect of customer focus strategy on the performance of saccos in Kenya. International Journal of Business Strategies, 3(1), 1-16. Sen, S., Kotlarsky, J., & Budhwar, P. (2020). Extending Organizational Boundaries Through Outsourcing: Toward a Dynamic Risk-Management Capability Framework. Academy of Management Perspectives, 34(1), 97-113.
Luck, P. (2019). Global supply chains, firm scope and vertical integration: evidence from China. Journal of Economic Geography, 19(1), 173-198.
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