Strategic management in every organization is an essential aspect that companies should exercise. Typically, the approach involves an ongoing planning, monitoring, and analysis of all resources required by a business to meet its goals and objectives. In this case, GrowthDc Company will focus on different strategies that can improve its performance. This report focuses on the strategic management of GrowthDC to determine how it can increase its competitive advantage in the Information and Communication Technology (ICT) industry.
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Services Offered by the Company
GrowthDC Company deals with ICT, which one of the most competitive industries in the current world. Modern technology has become one of the essential aspects in the contemporary world that have led to the increased number of companies in the sector (Boyce & Ville, 2017). Services offered by GrowthDC include data audit specialist services, whereby companies and individuals can learn about data security and management. Data maintenance and managing services are also be offered by the company. Other services will include data center testing and commissioning, data center training. Thus, the strategic management will focus on ways that can be exercised to attract more customers.
The Organization’s Competitive Position and Distinctiveness
Every organization should ensure that it has a competitive advantage to increase its market share. Although competition in business is inevitable, companies should develop plans to enhance their competitiveness (Cusumano et al., 2019). GrowthDC has different services that can attract many people interested in ICT. For instance, the organization offers maintenance services, which helps the company be in an excellent competitive position. In most cases, people are attracted by companies that have established brands. Therefore, strategic management will also involve creating a brand that can be recognized by many people and increase its market share.
Distinctiveness is also another essential aspect of a business. Clients ensure that they analyze the services and products offered in organizations to determine the uniqueness of a company. Moreover, having unique services that meet customer demands can help retain customers. Therefore, the essence of GrowthDC is that its services are diverse, and many people can acquire ICT solutions from the organization. Moreover, many companies do not offer training, making GrowthDC unique. Consequently, these aspects are vital as they can increase the firm’s growth and development and improve its competitive position.
Business Model for the Company
Strategic management also involves the use of a business model to enable managers to plan business practices. A company’s model is an effective strategy for increasing sales as it entails information about products and services that a business intends to sell (Lanzolla & Markides, 2021). Additionally, it focuses on the target market and the expenses that are likely to be incurred. Experts have stated that the two levers of a business model are pricing and costs since they primarily influence the performance of an organization (Lanzolla & Markides, 2021). Hence, GrowthDc will have a well-developed model to guarantee that all resources are available and the business can be executed appropriately.
The above model reveals the various practices that the company will exercise to improve its performance. Research and Development (R$D) will be one of the approaches to ensure that the company offers services that meet customer demands. Monitoring updated technology will also be another integral approach since the organization is in a competitive industry and the business environment keeps changing. Other aspects will involve seeking innovation resources to guarantee that workers can develop unique new services. Marketing will be achieved by approaching the local markets and focusing on global business.
Most Important Resources and Capabilities for the Company
Some of the most critical resources for the company are the funds and the skilled workers. Money can be used to develop the company and introduce new services. Skilled workers will also be vital in innovating various services that can attract and retain customers. One of the capabilities is that the company offers services that can attract customers from multiple countries. Monitoring bulky records is essential since many companies are experiencing challenges when dealing with big data (Ekka & Jayapandian, 2020). Another ability is that GrowthDC can develop its brand by training people from various regions and encouraging them to market the company.
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How to Compete In Terms of Generic Strategies and Market Position
Generic strategies can be used to increase its sales and attract more consumers. Michael Porter developed generic strategies that many companies use to gain their competitive advantage (Firoz et al., 2019). Cost leadership, differentiation, and focused cost leadership are generic strategies that a company can exercise (Viltard, 2017). GrowthDC will focus on a cost leadership strategy, which advocates gaining competitive advantage due to the lowest cost of production of a service. The organization can also use the approach to increase its market share and become more competitive.
The Company’s Resources and Capabilities that help in Competing Effectively
The company has the required resources that can help in competing effectively. Having proficient workers is an essential factor that allows the company to compete in the technology industry. Funds can also be used to develop services and market them in various states, increasing the company’s competitive advantage. Additionally, the capability matrix can also describe what GrowthDC does to achieve its mission, such as being innovative and marketing its services.
Competitors Resources and Capabilities
The competitors can also develop new strategies to make them more competitive. Moreover, every organization focuses on attracting more consumers and increasing its sales (Belo et al., 2017). For instance, the competitors have information resources and financial resources that they can use to become more competitive. Their capabilities, such as creating a solid brand, can also increase their market share. The ability to introduce new services and update technology are other factors that can make them more competitive.
The Appropriateness of Resources and Capabilities
Having appropriate resources is encouraged in business since it is one of the ways to ensure that a company can reach its goals. GrowthDC has the required resources that can help achieve its goals in the ICT and data consultants industry. The sector requires companies to be innovative and have financial resources to guarantee that all operations are effective. Skilled workers are also needed in the industry where they can develop new approaches to meet customer demands. For instance, a team of expert consultants translates their experience to invaluable knowledge to the end-user to understand the installed equipment at customers’ premises. Therefore, GrowthDC has appropriate resources and capabilities for the industry.
Management Contribution to Competitiveness
The management has focused on ways it can increase the company’s sales. Typically, managers broadly impact the organization’s performance since they make decisions regarding operations, pricing, and planning in a company (Wheelen et al., 2017). In this case, managers in GrowthDC contribute to competitiveness since they make various decisions that can impact the firm’s development. Moreover, management involves leadership and organizational culture, which can influence the market position of the company.
At the corporate level, advantages and disadvantages can be experienced, impacting the performance of the organization. Corporate level strategy is vital since it involves the top management’s approach for developing a business (Witcher, 2019). In this case, GrowthDC has a professional corporate level, whereby top managers can increase the organization’s market share by focusing on innovation. Having great data consultants is another advantage of the company sinnce the services of the company can attract many people.
The Organization’s Way of Developing and Delivering strategy
GrowthDC ways of developing its strategy are enabling its competitiveness. For instance, the process involves pricing, which is one of the essential aspects that affect competition in business. Focusing on the elasticity of demand can help the organization price its services and attract more customers. Marketing the services locally and internationally is another strategy that the firm can use to improve its competitiveness. Thus, the organization’s way of developing and delivering strategy will help in its competitiveness.
Strategic Plan for the Company
Companies should develop an excellent strategic plan to enable them to grow and develop. The document is used to communicate the goals of a company and the actions required to achieve the objectives. In this case, GrowthDC will focus on the expenses of the organization, which will focus on the finance department, where all expenditures will be analyzed. The suppliers will also be involved in the plan to discuss the various equipment that will be required. Pricing will be another factor in the project that will be addressed by focusing on the market and competitor’s pricing strategies. Marketing will be exercised by using social media platforms and other media channels such as TV, radio, and newspapers. Moreover, social media marketing has become one of the most common approaches in marketing (Tuten, 2020). Leadership will involve the transformational style as it is one of the approaches that encourage workers to be innovative. Therefore, these aspects will be involved in the company’s strategic plan and will be used to reach its goals.
Companies can focus on the strategic management to ensure that they develop and increase their market share. The approach can enable organizations to monitor their progress and introduce new programs to improve their market position. Focusing on aspects such as resources and capabilities is another vital approach that can allow businesses to design excellent strategic plans to increase their output. Thus, strategic management is an essential factor that organizations should practice to become more competitive.
Belo, F., Li, J., Lin, X., & Zhao, X. (2017). Labor-force heterogeneity and asset prices: The importance of skilled labor. The Review of Financial Studies, 30(10), 3669-3709. Web.
Boyce, G., & Ville, S. (2017). The development of modern business. Macmillan International Higher Education.
Cusumano, M. A., Gawer, A., & Yoffie, D. B. (2019). The business of platforms: Strategy in the age of digital competition, innovation, and power. New York: Harper Business.
Ekka, S., & Jayapandian, N. (2020). Big Data Analytics Tools and Applications for Modern Business World. In 2020 International Conference on Electronics and Sustainable Communication Systems. 587-592. Web.
Firoz Suleman, M., Rashidirad, M., & Firoz Suleman, S. (2019). The applicability of Porter’s generic strategies in pure online firms: A case study approach. Strategic Change, 28(3), 167-176. Web.
Lanzolla, G., & Markides, C. (2021). A business model view of strategy. Journal of Management Studies, 58(2), 540-553. Web.
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Tuten, T. L. (2020). Social media marketing. Sage.
Viltard, L. A. (2017). Strategic mistakes: The topicality of Michel Porter’s generic strategies. Independent Journal of Management & Production, 8(2), 474-497. Web.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy (Vol. 55). Boston, MA: pearson.
Witcher, B. J. (2019). Absolute essentials of strategic management. Routledge.