What implications does your research have for the strategy Essay Example

  • Category:
    Management
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1697

Optus’ Business Strategy

Focus of the paper: Optus business strategy as seen in the following Optus media releases on April 23, 2012: “Optus drives reappraisal with launch of new brand campaign” and “Horsham ‘yes’ Optus shop franchisees.”

In this essay, I take a keen and critical look at the implications of my research with regards to the strategy employed by Optus Pty Limited in running and spearheading the company to achieve its goals and objectives. It points out the strategies employed by Optus franchises, the implications of the strategies used and how they have contributed to the success of the store. The findings of this essay are based on two Optus media releases on April 23, 2012: “Optus drives reappraisal with launch of new brand campaign” and “Horsham ‘yes’ Optus shop franchisees.” With reference to these articles, this essay will analyse the business strategies used by Optus shop franchisees and Optus in general in order to maintain the company’s competitive edge in the market and differentiate the company from its competitors. Moreover, this essay will critically examine the implications that the strategies used by Optus may have on the company’s organisational culture, staff and its competitive edge in the market.

Business strategies used

According to Waddell et al (2007), a company’s business strategy often reflects the company’s vision and mission statements established during the planning process. The business strategy employed by Horsham ‘yes’ Optus, a franchise of Optus shop reflects on the company’s key mission, “The customer always comes first.” Hence, Horsham ‘yes’ Optus Shop, strategy is anchored around providing quality services to customers by giving them choice and diversity. Mick, one of the franchisees of the store is quick to note that the store has been able to provide some diversity and choice for the local community which it serves. He highlights this as one of the strong points of the store suggesting that most of its competitors have a limited variety for their client and therefore many of these clients may opt to patronize HORSHAM ‘yes’ Optus Shop. Mick and His fellow partner seem to have identified a weak point in the already established competitors which they have taken advantage of and made their presence felt in the one year the store has been in operation. As a result they have been able to acquire new customers which are quite impressive for a business which has been in operation for one year (Optus 2012).

Corporate Social Responsibility (CSR) is another strategy that the Horsham ‘yes’ Optus Shop uses to maintain its competitive edge in the market and differentiate the company from its competitors. CSR can be defined as a business strategy used by companies to express their ethics and portray their sense of responsibility and care towards the environment and community in which the company operates in (Sims 2003). Evidently, this strategy reflects on the company’s mission, which is to put the customers first. Over time, Horsham ‘yes’ Optus Shop has shown continuous involvement and engagement in events that bring the local community together. The store has actively participated in local events like Goroke Show, Horsham Show and Wimmera Machinery Field Days during the first year of operation. In addition, the store has also given back to the community by sponsoring Horsham Airshow, providing a promotional vehicle for the Murtoa Good Friday Appeal, local sporting clubs and events and supporting four flood relief events at Glenorchy. The store seems to place a lot of emphasis in embedding itself into the fabric of the local community and so far this strategy and rapid decision making has worked well for the store. The key aim of this strategy is to engage the local community and therefore create a feeling of ownership to the store thus enhancing a bond between the store and the community it serves (Optus 2012).

In addition, the company has also placed great emphasis providing effective customer service. Mick stresses this by stating that customers are given the first priority at all times and as a result they have been able to get a lot of positive feedback from their clients as far as customer service is concerned (Optus 2012; Waddell et al , 2007).

Moreover, Optus has focused its business strategy towards brand awareness. Basically, brand awareness is marketing concept that focuses on enhancing the knowledge of the consumer on a particular brand (Kapferer 2012). In this case, the company used advertising as its key tool for its brand campaign. The strategy in Optus new brand campaign is aimed at adding an emotion value to all its clients. The advertisement captures the very sensitive emotions of its potential clients thus making a lasting impact in their will to purchase the product.

Before the new branding campaign, the company’s method of advertising had been product based. Such an approach only creates a limited appeal to potential clients since there is no emotional connection. However, in a more competitive environment, product quality is not sufficient enough to keep bringing in the sales volumes and a more effective selling point needs to be created in order to gain a competitive edge over other competitor’s. This competitive edge must be created through linking up the product to the potential customer’s emotional fabric. A product that achieves this has gained an upper hand over its rivals. Emotional client appeal is very important at this level of marketing because it creates internal connections with customers and reduces the chances of a customer thinking twice over its quality and cost (Optus 2012b).

Mr. Williams, the company’s Head of Segment Marketing is quick to highlight the change in product features which will blend well with the proposed advertisement tool in order to create the expected product appeal. For example, yellow box, delivered by an animal with an element of innovation. This makes the key expression of care in the advertisement. However, Mr. Williams also is quick to point out that the company was actually moving from the traditional use of animals in its advertisement in order to create a new look and appeal to a greater audience. This will in effect create a feeling of a new look on its products and therefore generate a new interest from new potential clients (Optus 2012b).

Based on Porter’s five forces analysis, it is apparent that Optus has attained a distinctive competitive edge in the market due to the business strategies that it employs. For instance, in a bid to counter the threat of new entrant in the market, the company has implemented a new brand campaign that has enhanced and rejuvenated the appeal of the company’s brand to its existing client base and new customers in the market. Additionally, the company has addressed the threats of substitutes in the market by using a business strategy that differentiates the company from its competitors. In order to actualise this, company has reinvented a new brand image which has been aligned to the company’s quality products and services. The company also launched an aggressive brand campaign implemented through well thought advertisements that effectively target audiences identified through media platforms such as national television, the internet , outdoor, print and cinema advertising(Optus 2012b;Porter 2008 ).

Implications of the strategies used

From, this article it is evident that the strategies used by Optus and its franchise will have impacts on the company’s employees, management and its competitors in the market. The fact that Horsham ‘yes’ Optus Shop, strategy is anchored around providing quality services to customers by giving them choice and diversity, will require that the company’s staff take up additional roles, they might also require training in order to execute their duties effectively. Similarly, the company’s managers will have additional roles in monitoring the effectiveness of the implemented strategies. From the articles reviewed, it is not clear how the implemented strategies would impact on Optus competitors but it is possible that the implemented strategies will help the company to maintain its competitive edge in the market and differentiate it from its competitors. For instance, by providing choice and diversity to its clients Horsham ‘yes’ Optus Shop will have an upper hand over its competitors who have a limited variety. Moreover, the implementation of CSR strategies will help Horsham ‘yes’ Optus Shop to engage with the local community and therefore create a feeling of ownership to the store thus enhancing a bond between the store and the community it serves. Furthermore though CSR activities the franchise will have marketed itself effectively in the community and thus created loyalty to its brand (Optus 2012; Sims 2003). In addition to this, Optus new brand campaign will help the company to gain an upper hand over its rivals. This is mainly because the campaign has an emotional appeal that will help the company to connect with its clients thus reducing the chances of customers thinking twice over the quality and cost of its products and services.

Conclusion

Basically, Optus represents a company that is keen to change with the changes in the existing market environment in order for its products to remain relevant to the new environment. The company’s strategy is aimed at carefully identifying the key emotional catalysts that it can spark in its potential market in order to drive up sales and generate more income. To achieve this it must ensure it remains relevant to its client’s needs and concerns and that the products can capture the best in a customer’s emotional appeal. By doing this, the company ensures that it is setting the pace for its competitors and creating a strong brand that will generate patronage and loyalty (Waddell et al 2007).

References

Kapferer, J., 2012, The New Strategic Brand Management: Advanced Insights and strategic Thinking, Kogan Page, New York.

Optus, 2012, Horsham ‘yes’ Optus shop franchisees. Retrieved on April 23, 2012 from <www.optus.com.au>

Optus, 2012b, Optus drives reappraisal with launch of new brand campaign, Retrieved on April 23, 2012 from< www.optus.com.au>

Potter, M. (2008). The Five Competitive Forces That Shape Strategy, Harvard Business School, Boston.

Sims, R., 2003, Ethics and Corporate Social Responsibility: Why giants fall. Greenwood Publishing Group, London.

Waddell, D., Devine, J., Jones, G. & George, J., 2007, Contemporary Management (2nd edition) McGraw-Hill, NSW.