Question:
Discuss About The Business Procedure Organizations Utilize?
A strategy refers to a plan or action that is designed to achieve the long-term objective of business. This report explains the competitive strategy of the different industry that is computer industry (IBM and Microsoft) and car industry (Tata Motors and Maruti Suzuki). The report analyzes the competitive strategy of these industries on the basis of global strategy as business model change and targets markets and modes of entry. The report also evaluates the approaches of the both the industries and find the reasons behind their success with respect to the theory. The main purpose of examining the competitive strategies management of the computer industry and car industry is to know the competitive advantages and the strategy which will increase the performance of the industries.
According to Becker-Ritterspach & Bruche (2012), the report explains the competitive strategy of computer industries which show IBM and Microsoft Company strategies on the basis of global strategy as a business model change.
According to Bock et al. (2012), IBM (International Business Machines) is a multinational technology organization which produces and markets personal computer hardware, software and offers to facilitate and counseling in areas running from centralized a server to nanotechnology. IBM is also a big major research company, holding the record for most licenses created by a business for 24 consecutive years. The competitive strategy of IBM is explained on the basis of two major factors which are detailed below:
According to Bowonder et al. (2010), IBM strongly operates in the worldwide information technology industry through the effective execution of the firm’s common strategy for the competitive benefit and intensive development strategies to utilize growth opportunities in several markets. IBM had a large rate of technological creation is at the core of the company’s common competitive strategy. Establishing a worldwide business model refers to the advancement of an all around incorporated condition, using capacities to manufacture an arrangement of business and abilities to better contend and better serve the necessities of buyers internationally. IBM working in a multinational plan of action with the little IBM in the greater part of the nations, for example, in IBM Japan, IBM Canada, IBM France and in more countries (Casadesus-Masanell & Ricart, 2010). IBM is able to adapt a shared service model that permitted the company to strip away a lot of the cost and difficulties while utilizing the resources and talent. The competitive strategy of IBM also concentrates on the expanding, generating and delivering large value for the customers rather than maintaining the inside working. IBM is motivating policy makers to concentrates on the favorable actions in order to make better creativity abilities and skills development.
According to Cusumano et al. (2015), Microsoft is an American multinational development association which produces, makes, licenses, support and offers PC programming, customer equipment, PCs, and organizations. The best-known programming consequences of Microsoft are the Microsoft window line of working frameworks, the Microsoft office suite and the web voyager and edge web programs. The affiliation also makes an expansive combination of other customer and endeavor programming for desktops and servers, including Internet look, the computerized administration’s showcase, blended reality, cloud computing (Azure) and programming improvement (Visual Studio). The competitive strategies of Microsoft can be explained by the below following factors:
According to Grant (2016), Microsoft can accomplish overall markets and use these business divisions as an outlet to bring lower advancement and information systems costs is through the technique of outsourcing. In April 2010, Microsoft indicated a game plan with an Indian outsourcer Infosys Technologies LTD in order to manage parts of the generally speaking internal information technology costs. Microsoft is a world leader in computers innovation and has positioned itself as the main presence in India. The business strategy of Microsoft combines the main three elements:
Cloud first: According to Gupta & Malhotra (2013), the insightful cloud represents one of the strong powerful components of Microsoft competitive benefits and Microsoft business strategy puts the main focus on cloud segment of the business. The main objective of the company was to accomplish USD 20 billion in commercial cloud annualized income in the financial year 2018.
Growing through mergers and acquisitions: In June 2016, Microsoft procured LinkedIn for USD 196 per share in all money exchange valued at USD 26.2 billion. This specific acquisition assumes an instrumental part to interface the world’s expert cloud and the world’s professional network in making new encounters and new value for business clients.
Concentrates on expansion: According to Hollensen (2015), the company has shared substantial time and energy in explaining the business capability which can utilize for business. Moreover, Microsoft is enablsing to indicate how virtual reality could better the shopping experience especially in education and automotive creation.
According to Howes et al. (2013), the report explains the competitive strategy of car industries which explain the strategies of Tata Motors and Maruti Suzuki organization. The report describes the competitive strategies of these companies on the basis of target marketing structure and modes of entry.
According to Keller et al. (2011), is an Indian multinational car fabricating association which produces autos, trucks, vans, mentors, transports, sports autos, development things and military vehicles. To put it plainly, the organization serves to the three market partition comprehensively that is traveler autos, utility vehicles, and business vehicles. Goodbye engines are likewise recorded on the Bombay Stock trade where it is a part of the Bombay stock trade, National stock trade of India and the New York Stock trade. Goodbye engines have gone into key securing and joint ventures in its inside level and begin new things at a faster rate in a couple of business sectors. In the current circumstance, association acknowledges the position of being Indian’s driving vehicle maker with broadening proximity in Europe, South East Asia, Africa, Australia and the center East with an aggregate a more unmistakable measure of US $ 4 billion (McGrath, 2013). The affiliation prevalently concentrates on giving customers the best a motivating force for their cash meets European principles and biological course through their impelled progressions. The association is a general concern working in more than 100 countries with incalculable as there is no other industry which is from every angle untouched by the social event.
According to Ortega (2010), the automobile industry is of vital significance to the Australian economy as the automobile is the biggest manufacturing industry in the United Kingdom. This industry supports many different businesses such as aluminum, steel, glass, plastic and also adds to the exports of the country. Tata Motors, the Indian automobile brand has looked to think with a variety of light commercial vehicles in the United Kingdom automobile markets, with the support of the local United Kingdom automobile wholesaler, fusion automotive. This partnership would empower Tata motors to enter the United Kingdom competitive markets giving select appropriation rights to Fusion automotive.
The convergence of Tata’s market segment will be the UK. There are few purposes behind picking the UK as the goal advertises. These positive factors were the status of India as the great money related expert, UK auto feature movement, and potential, tongue comparability. Exchange nations which were considered as insistently captivating were:
According to Peng (2013), USA is the biggest market size in the world developing its business sector with critical deals potential. The option of the USA as target advertise was declined as a result of to a great degree fantastic requirements and other non-require obstructions which make it troublesome for another part to enter this market. Likewise, this market is outstandingly making and encounters crazy level of centered weight. Concerning Russia, there were two or three negative parts which made it less captivating than the UK that is the helplessness of the further budgetary state, high path obstacles and no inside and out made dealership arrange.
According to Rays & Ray (2011), Maruti Suzuki India Limited is an automobile fabricates in India. Maruti Suzuki was India real car maker and the market pioneer in the auto division, both as far as the limit of vehicles and wage earned. The main competitive benefits of the industry are in terms of price, quality, and service. The company is famous for its large manufacturing standards and it gains award from the All India Engineering Export Promotion Council (EEPC) for the successive three years 1987, 1988 and 1989. The company concentrates on the improving manufacturing, enhance capacity, and build new items at persistent periods in order to meet to every one of the fragments of the Indian traveler auto market and undertaking into other related organizations like auto fund, protection and buying and offering utilized Maruti’s vehicles. As indicated by Teeratansirikool et al. (2013), Maruti’s reoriented exercises helped the association to keep up its market authority put and keep up its piece of the pie. As a segment of focused technique, operations broadens its item portfolio and grows its deals and administration associations over everywhere India and with the rising competition, the company takes decisions to meet to all the segments of the Indian car market. A company by taking into consideration the rise in demand for passenger cars from several segments, Maruti Suzuki provides cars for different divisions such as follows:
For the low level of income, Maruti 800 and Maruti Omani offered by the company
For the middle level of income, Maruti Zen and Swift offer by the company
For the high level of income, Swift Dzire, SX4 to sports benefit vehicle offered by the company.
Thus, the company realizes that the strategy of segmentation permit organizations to remove direct competition in the market by distinguishing their products offering not only on the price basis but also by packaging, advertising appeal to customers and distribution methods.
According to Zott et al. (2011), Maruti Suzuki targets the rural market which is the main correspondent for the four-wheeler industry development. The proportion of 46 percent of the sales of Hero MotoCorp is assigned to the rural division. The rural market has the capability for development and can be depended upon for a sustainable growth. In the present scenario, one out of the each three cars that the car manufacturer sells is sold in the rural segment. The company has set estimations of 50 percent sales from the rural segment by the year 2015-2016 and the company gets the success for this estimations. Maruti already targets this market and even in the last month, there was the rise in the sales and the growth rate of the company was 55 percent. Company rural’s market concentrates initiative begin back in the year 2007. The company segmented the class into small groups. The company appeals its capable customers through the Panchayats. The media also a significant part of this segmentation in order to carry the message of these automobile companies to the potential customers. Maruti Suzuki makes its availability stronger by opened up 23 new retail outlets in the rural towns.
The modes of entry company adopt is licensing and strategic alliances. The main advantage of licensing in entry mode for the company was the small investment on the part of the licensor is required and has the capability to offer a large return on investment. Licensing also decreases cost and involved limited risk. On the other hand, strategic alliances have become very popular in the recent years. This mode of entry allows the companies to divide the risk and resource required to enter into the foreign markets.
Conclusion
From this report, it has been concluded that the strategies adopted by computer industries (Microsoft and IBM) and car industries (Tata Motors and Maruti Suzuki) are exclusive and attractive. Their customer retention comparatively high in comparison to others. Microsoft and IBM offer several useful features to make email experiences as smooth as possible which includes software program, hardware, spam filtering, and much more which makes its products and services more attractive. On the other side, Tata Motors and Maruti Suzuki is already creating a superior brand image for all products it sells to the customer and solves queries for each customer by remaining available all time.
References
Becker-Ritterspach, F. & Bruche, G., 2012. Capability creation and internationalization with business group embeddedness–the case of Tata Motors in passenger cars. European Management Journal, 30(3), pp.232-247.
Bock, A.J., Opsahl, T., George, G. & Gann, D.M., 2012. The effects of culture and structure on strategic flexibility during business model innovation. Journal of Management Studies, 49(2), pp.279-305.
Bowonder, B., Dambal, A., Kumar, S. & Shirodkar, A., 2010. Innovation strategies for creating competitive advantage. Research-technology management, 53(3), pp.19-32.
Casadesus-Masanell, R. & Ricart, J.E., 2010. From strategy to business models and onto tactics. Long range planning, 43(2), pp.195-215.
Cusumano, M.A., Kahl, S.J. & Suarez, F.F., 2015. Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Gupta, S. & Malhotra, N., 2013. Marketing innovation: A resource-based view of international and local firms. Marketing Intelligence & Planning, 31(2), pp.111-126.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Howes, R., Skea, J. & Whelan, B., 2013. Clean and competitive: motivating environmental performance in industry. Routledge.
Keller, K.L., Parameswaran, M.G. & Jacob, I., 2011. Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.
Ortega, M.J.R., 2010. Competitive strategies and firm performance: Technological capabilities’ moderating roles. Journal of Business Research, 63(12), pp.1273-1281.
Peng, M.W., 2013. Global strategy. Cengage learning.
Ray, S. & Ray, P.K., 2011. Product innovation for the people’s car in an emerging economy. Technovation, 31(5), pp.216-227.
Teeratansirikool, L., Siengthai, S., Badir, Y. & Charoenngam, C., 2013. Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management, 62(2), pp.168-184.
Zott, C., Amit, R. & Massa, L., 2011. The business model: recent developments and future research. Journal of management, 37(4), pp.1019-1042.
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