Strategic Management

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Intended Strategy Our firms intended strategy is an integrated strategy combining niche differentiator and niche cost leader in low end and traditional segment. Our firm will strive to carving out a niche as a low-cost manufacturer by focusing on high automation. The aim of this strategy is to be the cost leader in the traditional and low-end segments with the aim of capturing the largest market share possible. To be more specific, we seek to be the cost leader by heavily investing into machinery in order to minimize cost and maximizing efficiency. In that way, we can take our advantage in cost by lowering our product price. Since customers in low end and traditional segment treat price as an important factor in their purchasing…show more content…
The price of the product will be set at relatively low levels to capture the largest market share possible. The two course of actions stated are fundamental to being highly competitive in a much focused and highly dynamic market. A high degree of differentiation enables us to stay ahead of the market. Production will be significantly improved via automation upgrades. This will allow us to produce at high levels while keeping cost levels low. Furthermore, in order to achieve high production volume, we decide to utilize the 2nd shift of production line. Lastly, high levels of automation upgrades would incur significant amount of costs, which will be financed through a mix of short term borrowings and new stock issues. We expect business operations for the coming year to be able to cover all short term monetary obligations. Success Criteria & Weights Cumulative profits ------------------------ (20%) Market share by value --------------------(30%) Return on Equity (ROE)-------------------(20%) Asset Turnover -----------------------------(30%) * Cumulative profits We are aiming to focus on product differentiate as while as lowering costsat same time. Increase automation in first round will result decreasing labor costs in following rounds. We are not selling products at very high prices but we always set size and performance better than the ideal spot

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