Management Strategy: ERB Ltd. Electronic Retail Company - Essay Example

The Strategic position of ERB Ltd. considers the influence of strategy on the external environment, the organization’s goals, culture, and strategic capability, which will include the resources and competencies of the organization (Abrams, 2003, pg.121). This is significant for its continued competitive strategies in this dynamic business society influenced by globalization. The ERB Ltd. strategic position is concerned with the impact on the strategy of the macro environment, internal resources and competencies, expectations, and influence of stakeholders (Abrams, 2003, pg.258). The Macro environment factors and competencies of ERB Ltd. are studied using Pestle, Swot, Porter’s 5 Forces, Strategic Capabilities Analysis, and Stakeholder mapping.

Cost leadership Our company follows a cost leadership strategy. The reason for our choice is that we achieve to be supplied with products from manufacturers at a lower cost. In addition, we do our best to offer the products to customers at the lowest possible price (Schermerhorn, 2010, pg.223). Since we are focussed on selling quality products and offering outstanding customer service to our clients, marginal cost pricing technique is paramount concerning our continued profit margin.

As an accost leadership strategy believer, the company observes the pricing behavior of other firms and set prices slightly below the market average thereby attracting more customers and realizing greater sales (Hill & Jones, 2010, pg.157). ERB Ltd reconciles the idea of affordability of its products with its relatively cheaper purchasing cost and this has significantly boosted its market size in the industry.3.2 Market penetration ERB Ltd decided that Market Penetration is the best corporate-level strategy for growth because the company has a defined range of products in a defined market, and its purpose is to increase market share and beat its competitors (Schwenker & Spremann, 2009, pg.219). Since there is no introduction of new products, market penetration is the most suitable strategy to retain customers and grow the business with minimum risk if the firm is to gain higher returns (Iacobucci & Churchill, 2010, pg.157). 3.3 Organic Development ERB Ltd decided to go for organic development to develop its strategy for combating emerging market dynamics. Organic development is the concept of developing the organization’s capabilities (Mognetti, 2003, pg.12). financial aspects must be linked to make it more strategically supportive, and sufficient funds need to be invested in personnel, equipment, facilities, and other resources for the success of the strategic plan (Birkin, et al.2002, pg. 157). ERB Ltd decided to invest its profits back by spending on research and development to bring innovation in its products quality and services.

The company also planned to achieve steady growth by penetrating more into the regional market to expand its customer number.