Strategic Management and Strategic Competitiveness - Research Paper Example

Strategic Management and Strategic Competitiveness Introduction The Marlboro Company is the biggest producer and marketer of cigarettes in the whole world. It comprises of the Philip Morris USA, which is a branch located in Atria and Philip Morris International which is located outside the United States of America. The company is well known and remembered for its great adverts on billboards, magazines and sponsorship of motorsports. The manufacturing plant is located in Richmond; in the Virginia State. This is the biggest plant ever built in the tobacco industry. Marlboro is well known for its adverts by use of the Marlboro man (Erin & Jack, 2003). Impact of Globalization and Technological Changes on Marlboro Globalization in this scenario is the process of improving the interactivity of the social, political interdependence, cultural, financial economic and incorporation of markets that are triggered by development of technologies in the communication and transport sector at the same time liberalizing trade. Globalization together with unparalleled change in technology has led to a weakening of the borders from the States control (Michael, Duane & Robert, 2008). There is an increase in the volume of cigar and money at an alarming rate which kills the tobacco industry. Fake tobacco products are smuggled into the State by organized criminals. There are various networks of companies, people and groups who evade taxes and royalties to bring in fake cigarettes which look similar to the genuine products. As a result they trade like any other company’s products hence killing the revenue collected by the company. The products sold by these smugglers cost much lower than the genuine products. With globalization and technological change the products can be designed in away, that one cannot differentiate them genuine products. The taxes can be avoided easily with fake documentation which can pass for the real documents. Application of the industrial organization model and resource based model by Marlboro firm to earn above average returns can be done in various ways. First, with the application of the industrial organization model, Marlboro firm can make use of alliances with other cigarettes manufactures to form an association like a cartel. Since the organized cooperate more with other close competitors in the tobacco industry, this will reduce the probability of the collaboration to lift the revenues of the firm. Moreover, the firm can also make good use of its resource based model by differentiating their products and making it known to the customers about the genuine products and how to separate from the fake products. All it takes are the internal resources by the company to implement strategies that can easily reduce cases of smuggling. In addition, the government regulatory controls can be partnered with, by the company by having agents or inspectors who are able to draw a clear line between fake and genuine products. There are various procedures that can be taken by Marlboro firm in reducing the negative impact of globalization and technological improvement to increase returns on their products. First and foremost, analyzing the external environment is very crucial in identifying the potential threats and how to override them. Second, the firm must distribute its products by reliable distributors who are not likely to imitate or sell the products to competitors for imitation (Erin & Jack, 2003). Third, every firm has its own strength and opportunities, Marlboro can make good use of its lifetime existence in the market to identify tactics that are appropriate in attracting in good returns. This can be done by employing skilled labor from technological sector to help in branding their products in a manner that competitors cannot copy them. The Effect of Marlboro’s Vision and Mission Statement on Their Success The main aim a mission statement is to draw to attention the stakeholders of the firm on the purpose and objectives of the company. Marlboro’ mission statement is to posses and grows economically in the business discipline and develops as leaders in provision of grown-ups tobacco customers which has extraordinary brand. The company uses the vision and the mission statement as a broader method of social inspection (Mulcaster, 2009). Marlboro evaluates checks and assesses the effect of its business on the society at large and the entire stakeholders. Marlboro makes frequent audits on the needs of its stakeholders, how to fulfill them and where probable conflicts will arise and ways of dealing with them. At most times, the shareholders have expectations of profits from the firm. In making profits, the sales must increase and the expenses monitored carefully. By making suggestions to customers to reduce the consumption of its products, the firm will be jeopardizing their returns. The CEO of the firm Philip Morris would attest that the mission and the vision statement are used in concentrating on the target marketing tasks as its main market. This main market includes adults who have decided to smoke. Through its effective marketing strategies, this group is convinced to use Marlboro’s products as opposed to its rivals’ in this manner, the company can be assumed to act in a more rational way in relation to the broader accountability in the marketing tactics and satisfying the needs of the stakeholders and demands of the owners of the company. The Impact of Stakeholders on the Success of the Marlboro The shareholders demand good returns from the company. They might be aware of the advertisement ban imposed on tobacco products hence a possible reduction in sales of the products due to reduced product promotion. They still push the management to work hard to find alternative tactics of reaching to their target market. The managers on their part make efforts to develop marketing strategies that can enhance use of the firm’s products other than the rivals’ products. Hence through the CEO Philip Morris, the company is able to reach out to its target market-adults who have decided to smoke. On the other hand, we have the customers who continually demand for superior products that can meet their needs. Thus the Marlboro products have been evolving from time to time such as from the unfiltered to filtered cigarettes, and from omission of possible warning in regard to endangering the health of its user to its inclusion on the package. Besides, the consumer lobby groups and the society put pressure on the government to increase taxation on the products in a manner to discourage smoking (Johnson, Scholes &Whittington, 2008). All these actions by the stakeholders impel the firm to seek deeply ways of improving on sales hence steering it to success. References Barrett, E. & Mingo, J. (2003), W.C. Privy's Original Bathroom Companion. New York: NY: St. Martin's Press. Johnson, G., Scholes, K, &Whittington, R (2008) Exploring Corporate Strategy, 8th Edition, FT Prentice Hall, Essex Michael, A. Hitt, R. Duane Ireland & Hoskisson, R. (2008), Strategic Management: Competitiveness and Globalization: Concepts & Cases. Stanford, CT: Cengage Learning Mulcaster, W.R. (2009). Three Strategic Frameworks. Business Strategy Series, 10 (1). 68 – 75 Read More