Essay on Dynamics of Strategy - Haier Case Study

ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to

* Complete all housing design and renovation projects no more than 8% over the established baseline cost or schedule

Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).

In this paper I will discuss Macy’s Incorporated by analyzing their business level strategies to determine which I think is the most important to their long term success and if I think it is a good choice. I will analyze their corporate level strategies to determine which I think is the most important and whether or not I believe it is a good choice. I will analyze the competitive environment to determine the corporations’ most significant competitor and compare the two companies’ strategies at each level and evaluate which company I think is most likely to succeed in the long term. Once the

Michael Porter’s article, “What is strategy?” sets to explain that both operation efficiency (OE) and strategy are required for reaching superior performance, but further clarifies and emphasizes the misnomer that OE is not strategy.

A study by Assocham in 2011 estimated the rural consumer durables market to grow at 40% in 2012 as a result of higher disposable income among rural consumers. The size of the home appliance market in India is pegged at `30,000 crore, with air-conditioners, refrigerators and washing machines as the largest categories, though household peneration levels are in low single-digits.

After reading what precisely the article expounds and analyses, revolution stays as the core of strategy. 'The article 'Strategy as Revolution' clarifies the role revolution plays in the markets and declared ten principles to help a company discover revolutionary strategies and put into practice. All the third kinds of companies mentioned in the article have opportunities to reach what they want, however, the different roles determine the market hierarchy. 'In a growing number of industries, innovation is increasingly disrupting existing patterns of competition(Andersen & Strandskov, 2008),' just like what Gary Hamel (2000) said, the simple phrase, 'Familiarity is the enemy'(Chris Lauer , 2008).

There are various schools of strategy that have been vigorously debated on and after a consolidated effort; three schools of strategy were produced. They are the planning school, the positional school, and the resource based school of strategy (Ritson, 2013). All these strategies will be described with examples to buttress each.

Hindustan Lever Limited, India’s leading and fast moving consumer goods (FMCG) and services Company, had enjoyed a competitive advantage as a lone provider of personal hygiene care products until the development of India’s economy. However, with the entry of multinational FMCG companies HLL started experiencing stagnant growth and lower profit margin, and was under pressure of rising its incomes and revenues. At this point HLL’s new ventures division identified the untapped and unexplored rural India (where two-thirds of the population lived), as a key source of growth and expansion for the future. To continue on its competitive edge, HLL designed an innovative approach to penetrate these rural markets, with a project called

Even before the socio-economic changes that took place over the last decade in India, the cultural diversity and change in eating habits along with varied lifestyles of the consumers had ensured that the “Home Needs” segment is one of the most growing market segments in India. The country has now witnessed the creation of many new markets and a further expansion of the existing ones. There are more than 300 million people moving up from the category of rural poor to rural lower middle class between 2005 and 2025 and growth is being fueled by increased rural and small/medium town consumption. These developments have created major opportunities for companies, this market

Competition is fierce in the grocery industry, and one way to sustain a competitive advantage is to have a global strategy. Since opening in the 1900’s, Aldi has opened stores in over 18 countries and continues to grow their multinational enterprise (Aldi, 2017). There are several reasons why Aldi chooses to have a global presence which includes accessing larger markets and achieving economies of scale. To adapt to the culture in different countries, they vary the products sold in each store. Most importantly, Aldi has chosen to use a multi-domestic strategy to sustain a competitive advantage.

In the end of 2004, Haier, China's number one company and a leader in white goods market segment, had almost $15 billion in sales revenue and a growing presence in black/brown goods sector. Haier followed a distinct expansion strategy, entering developed markets in Europe and USA, at first as a niche player, and penetrating markets in Southeast Asia afterwards. Haier pursued a very aggressive globalization strategy and entered the Australian and New Zealand Markets in 2002. They diversified the production capacities, manufacturing goods for Asian and Middle Eastern markets at their plant in Pakistan, while the products for American market were produced in USA and even had ‘Made in US’ sign in order to make connections with strongly patriotic US customers. So, by 2005 Haier has achieved globe recognition, establishing its presence across all continents.

Strategy literature offers many techniques and models suited for systematic strategic analysis. The SWOT analysis, the PESTEL analysis, the Five Forces analysis framework are the prime examples of techniques that can be adopted for strategic analysis. This assignment will use PESTEL and Five forces model to analysis the environment of CRH plc.

After reading Michael Porters article "What is strategy" I think it’s very interesting. From the article I think operational effectiveness is not a strategy. Many organization tools like total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, that are used today, do enhance and dramatically improve the operational effectiveness of a company but fail to provide the company with sustainable profitability. Thus, the root cause of the problem seems to be failure of management to distinguish between operational effectiveness and strategy. Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways. A company can outperform rivals only if it can establish a difference it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both. However, Porter argues that most companies today compete on the basis of operational effectiveness. I believe the productivity frontier is the sum of all existing best practices at any given time or the maximum value that a company can create at a given cost, using the best available skills, expertise, management techniques, and purchased inputs. The frontier is constantly shifting outward as new technologies and management approaches are developed and as new inputs become available. To keep up with the continuous shifts in the productivity frontier, managers have

For centuries the rural world in India was static as a self sufficient unit of production and consumption, but it is no longer so. The rural setting is changing every day, with the corporate sector acting both as the carrier and bearer of the consequences of this change which is happening at an accelerating rate. Demographic profiles and spending patterns in rural India too are changing and marketers have to junk their old perception about rural India. Rural consumers who were on the receiving end so far are now gradually getting into position to dictate terms for the first time. Although there is a long way to go, the beginning has already been made.