Week 3 – Discussion Forum Replies Response to Tyler Jenkins
Week 3 – Discussion Forum Replies
Response to Tyler Jenkins
Hi Tyler, I agree with your ideas regarding strategic alternatives, particularly the types outlined by Abraham. Looking back at what strategic alternative is, the points become more evident. Strategic alternatives are the approaches developed by a business in setting the direction for which material, as well as human resources, will be applied (Ahmed, 2016). This is done for a greater chance of attaining designated objectives. Typically, a firm develops a strategic alternative in times of struggle and when searching for a new way of increasing incomes or rather in the pursuit of saving itself from disbanding. In elaborating on the type of strategic alternatives that you have indicated, there are other examples of strategic alternatives. These include stability, concentration, diversification, and liquidation. For instance, diversification is whereby a firm is straining as a result of dropping profits and is hopeful of lining up with other companies for purposes of increasing its bottom line. In addition to your concept regarding strategic bundles, when firms bundle products together, a client is motivated to spend more, and as such, their average order value increases. Through effective upsurge in the average order value, a corporation can increase profits at a reduced cost. The strategic plan of using mergers, acquisitions, and strategic partners will continue the growth and improvement of Lenovo.
Reference
Ahmed, H. O. K. (2016). Strategic Alternatives for Transforming Public Egyptian Universities to World-class Universities. European Scientific Journal, 12(10).
Response to Duke Moore
Hello Duke, I consent with the points that you have put across regarding the topic. Your definition of strategic alternative, as well as the outlined types of the same, are convincing. Adding more to the description of strategic alternatives, once the management of a firm or rather, its investors think that it requires restructuring in a radical approach, the company publishes its quest for strategic alternatives. This could entail selling the corporation to a competitor that tends to be more efficient or taking the firm private through marketing it to private stakeholders. In addition to your points, strategic bundling is where a company packages various products or services together to form one joined unit, which is, in most cases, sold at a lower price in comparison to purchasing every item independently. The marketing technique of strategic bundling enables the opportune purchase of numerous products from a single firm (Dominique-Ferreira, 2019). I additionally concur with your information regarding Lenovo. Typically, Lenovo pursues international growth through leveraging attained assets as well as increasing sales to developing markets. One of the strategies through which the organization influences the local proficiency of competitors tends to be acquisitions. The company has a history of negotiating strategic partnerships and acquisitions.
Reference
Dominique-Ferreira, S., & Antunes, C. (2019). Estimating the price range and the effect of price bundling strategies. European Journal of Management and Business Economics.
Response to Xavier Riofrio-Mackliff
Hello Xavier, I agree with you that effective strategies are an essential factor of consideration for any business organization. It offers management with the ability to come up with an informed decision. Effective strategies guides and shapes what a business is, the people or population it serves, its provision and what it offers, and why it does what, with the main focus of its future operations. The distinguishing factor of the strategy with others is that it provides the entrepreneurs with a logical sense of what they are about to undertake, or they have committed to achieving a sustainable competitive advantage over their rivals (Meyer, Neck & Meeks, 2017). This helps business improves its positional relationships with its clients as well as be able to allocate the necessary resources for high returns on its investments. Strategic planning is thus essential for a new venture as it provides the entrepreneurs with detailed information of the action they have taken or want to make. I would like you to understand that the critical issue is entry and survival in the market and eventual winning loyalty of consumers. So, Lenovo Company, like any other new business, is facing this challenge.
Reference
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Response to Benjamin Wells
Hello Benjamin, adding on your discussion on strategic alternatives, I would like you to know that among the apparent problems is competition from the already established big firms. Strategic planning is potentially an excellent route to follow for the success of any new business in any market (David & David, 2016). As it is the case of Lenovo, a business organization should focus on constant brand marketing to obtain new consumers and uphold the current ones. Unlike several other planning approaches, strategic planning is an assessment of external business opportunities as well as threats while at the same time matching them with the internal strengths and weaknesses of the venture. It offers management with the ability to come up with an informed decision. The core idea of any business is to achieve its set goal and make a profit. I, therefore, would like you to realize that Lenovo like any other new venture, is bound to face a lot of challenges before it wins a market share for its survival within the specific business field.
Reference
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.