Corporate Strategy of Able Corporation - Essay Example

The corporate strategy of Able Corporation will be concerned with matching markets to distinctive capabilities. Profits come not only from distinctive capabilities but from the possession of strategic assets, and competitive advantages which arise from the structure of the market rather than from the specific attributes of firms within that market. One-year strategic objectives are to identify a market that most effectively exploited its capabilities, the market for cordless segments, and develop this market. The brand in turn should acquire a distinctive identity.

That combination, a system of production that gives the company a particular advantage in its chosen market segment, a worldwide reputation for product quality, and a brand that immediately identifies the aims and aspirations of its customers, will make Able Corporation one of the most profitable manufacturers. Five-year strategic objectives are: (1) to develop innovative products and solutions which meet the needs of the target audience and allow Able Corporation to sustain a strong market position; (2) to penetrate new market segments of PEPT; (3) to become a leader in the cordless market segment. A ten-year strategic objective includes: (1) to transform itself from a medium-ranking company with an uncertain future to Europe's leading PEPT producer; (2) build two plants in Eastern Asia and (3) penetrate the Asian market; (3) increase market share in 50 % (McDonald, Christopher 2003).

Business Strategy
The business strategy looks at the relationship between the firm and its competitors, suppliers, and customers in the markets which it has chosen. One-year strategic objectives are (1) the choice of the market-identified suppliers, customers, and competitors. Relationships with suppliers, customers, and competitors are of special importance; (2) patent protection of products and innovations. Five-year strategic objectives are to create its distribution network and to price at a level designed to recoup development costs. The company should establish a manufacturing plant in Asia. Ten-year strategic objectives are to maintain tight control over its distribution network. This control will support the brand image and also aid market segmentation. The company will position its products differently and price differently in the various national markets.

Five-year strategic objectives: while most plants have been taken over by robots or workers from low-wage economies, Able Corporation should maintain a skilled labor force. The company benefits will be an educational system that gives basic technical skills. Increase sales by 30% in industrial and consumer channels. A ten-year strategic objective is to make full use of segmentation and involved the creation of a distinctive distribution network that bypassed the traditional retail outlets; increasing sales in both market segments by 90 % (McDonald, Christopher 2003).

Functional Level
One-year strategic objectives are (1) to improve communication between departments and introduce positive organizational culture, morale, and motivation; (2) to provide market and competitive analysis; (3)to train employees; (4) to improve productivity and (5)to introduce quality control. In five years the company will: (1) introduce TQM; (2) update the product lines; (3) build two new product lines for the cordless segment; (4) develop an effective advertising strategy; (5) create a marketing strategy. A ten-year strategic objective is to introduce cross-cultural management and update service quality and delivery according to market needs and customers' expectations.
Alternative strategies are to (1) penetrate South America and build a plan in this region; (2) focus on PEPT tools only. Read More