Analysis On Superstar Firms And Their Strategies Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Analysis On Superstar Firms And Their Strategies Case Solution

2.3.3 Product Expansion

Product expansion strategy is used by the big firms, where they increase their market and target a new audience. The best example we can take is McDonalds. It has expanded its market by introducing McArabia, which is the most considerable item in the Middle East. As McDonalds only had burgers in its menu, but by the product expansion strategy;it targeted the new audience and introduced new recipes keeping in mind the cultural change.

2.3.4 Diversification

The diversification strategy helps out the firm in making a new product and targeting the new audience, but on the contrary, it is the riskiest thing. The firm first has to analyze the demographics of the place and then introduce its product. There are 2 types of diversification, one is related and another is unrelated diversification. The ultra-successful firms apply diversification strategy to increase their business. Apple diversifies its business by making digital watches. It works with the related diversification.

2.3.5 Acquisition

Acquisition assists the firms in becoming vast and dynamic in the international world. The firms take partnerships or purchase any other firm to work together,which increases their market shares. Pfizer and Wyeth merged and expanded in the pharmaceutical industry. This made both the firms more competitive and increased their sales by high investment in the business.

2.4 Organizational Theories

There are different organizational theories, which the ultra-successful firms execute in their businesses and enjoy the large market shares.

2.4.1 Contingency Theory

Contingency theory helps the organizations in having best strategies, leadership and management. It accommodates the giant companies to make the best leadership management and strategies to apply in their business operations.

2.4.2 Agency Theory

Agency theory helps the organization to reduce conflicts and work for its betterment . The agency issues generates when there are different goals for each individual. This theory makes uniformity in the organization and they work for its mission. The successful firms apply this to overcome such issues. The real-world example is about Unilever, the employees put the same display picture to promote the firm’s objectives and goals.

2.4.3 Learning Organizations

Learning organization theory implies that an organization needs to learn continuously in order to improve its operations and to have rapid growth. Innovation is achieved only when the organization continuously learns from the current trends and demands. This theory is applied by every massively successful organization in order to become more successful.

3. How Successful firms maintain their growth and market position

How could firms and businesses maintain their growth and market position? It appears that some of the leading companies may not have any clue regarding what they are doing. Business must be based on sound principles and strategies. These are necessary for a company's success, it should also include good management practices to ensure that these strategies are effective and are helpful in achieving the companies’ objectives.

Firms need to develop competitive advantages.If their customers and clients are satisfied with their products or services; they will buy from them again. If a company is not competitive; it will disappear in a short time period. Growth and market share can only be maintained if firms take an innovative approach and use innovative marketing ideas. Innovation, the creation of new ideas, products and services are some of the basic factors that contribute to growth.

The management practices of a company plays a major role in determining its future success and its market position. They play an important role by implementing effective strategies. They set the overall direction of the company and determine the type of products and services which clients and customers demand. To implement these strategies; firms need to have sound strategies. Competitiveness is a keyword that firms need to focus on, in order to remain in business and to flourish. There are several tools which they use to increase competitiveness. Some of these tools are research and innovation, cost reduction and better manufacturing techniques. If a company canreduce its production cost; , there would be definite growth in its profits. A company with good market leadership will be able to survive any economic or financial crisis.Companies that lack flexibility and are reluctant to change, are bound to fail. This is because market trends are always changing. To survive, companies must constantly adjust themselves according to the new market trends. If they don't adapt, they might lose their market leadership and even their businesses. Companies must be flexible in both management styles - rigid in recessionary times and flexible in non-recessionary times.

Finally, the firms must take good care of their people. The quality of a company's workforce is very important, since it decides the success or failure of the company. The quality of the workers is directly related to the company's productivity, growth and market leadership. Therefore, the workforce should be kept up to date with the latest innovations and practices. Firms should also have highly trained employees, who tend to be aware of the latest market trends.

All these factors will ensure market leadership and would help the firms in achieving future growth. However, it is important to keep a track of all these factors. It is quite easy to get distracted by the external forces and to be failed in paying enough attention to the internal factors. To avoid this, a company should be able to chart its course independent of any external forces. This is only possible if the management gets good feedback from its own employees.

Another question that many companies face is how can they retain and expand their market share in the future? The answer is very simple, a company should invest in improving its processes, structure and its overall system. It should also make right decisions at right time, to exploit the opportunities quickly.

It is also very important for a company to plan ahead and being away from doing things in a rush. If a firm does not plan properly; it might end up making mistakes instead of exploiting the opportunities. Management should therefore sit down and discuss with its employees to chalk out a strategy that can work in the long run. This way, the company can focus on building on its strengths while avoiding the areas where it might get weak. This is what market leadership is all about, i.e. positioning the company right...........................

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Analysis On Superstar Firms And Their Strategies Harvard Case Solution & Analysis