Strategic Management Essay Example
Based on the fact that Microsoft’s Windows operating system has established itself as one of the strongest producers of the product, there is need for market penetration strategy. The company should consider moving from its functional model to a product design model, which enables alignments of its operating systems to align with current demands in the market. There are several reasons that make this approach more appropriate for the company. First, the objective of the company in terms of strategic development is to reach even further improvement in service standards and computer related products if it needs to rival Microsoft. The product design model therefore allows focusing efforts and consolidating specific expertise around the product and not the function, which brings in a more focused set of skills and experiences. Secondly, the company should be able to address the constantly changing business environment in a more flexible and responsible way, as the product design model concentrates decision-making authority in a “product cell” and thus enables faster response (Gumerov et al. 2015). With that in mind, a product design structure and strategic management if applied to their the operating system design can provide the organization with an opportunity to gather cross-functional and diverse teams under each focus segment, and provide customized and effective solution to the customers.
Strategic management further means that the company should seek to benefit from the economies of scales and strong relationships with stakeholders and partners, which will in turn, place it in a strong bargaining position with its upstream partners and allows leveraging the costs. Brand reputation, at the same time should be created so as to serve as a competitive edge in an increasingly competitive market. In relation to this approach, competitive advantage has to be created to leverage threats. The management team in the company will have to attain the competitiveness by investment in research and technical development which if well executed will reduce the costs of services to compete with niche operators.
The fact that the company has just launched its first operating system indicates that the current strategic position of the company demonstrates a strong focus on sustainability and growth. Therefore strategic options to grow through market penetration and market growth can be valuable to the organization, but places further pressure on its already asset-heavy operations. In an increasingly complex and competitive market environment, it is critical to leverage these types of capital intensive solutions with more flexible and faster strategic options, such as product diversification.
Gumerov, A.V., Kharisova, R.R., Pavlova, A.V., Litvin, I.Y., Nabiullina, K.R., Schepkina, N.K. and Sabirov, I.T., 2015. Improving Strategic Management of the Business Entities. Review of European Studies, 7(1), p.23.
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