1. An enterprise has distinctive resources and capabilities according to V-R-I-O
ID: 350076 • Letter: 1
Question
1. An enterprise has distinctive resources and capabilities according to V-R-I-O-S It competes in an attractive industry sector where its economic performance is outstanding. It considers entering a related sector where its resource base would be equally distinctive. However, the new sector has many more competitors than its present sector and its growth prospects are less attractive. Realistically, would the enterprise achieve its accustomed level of economic performance in the new sector, or would it worsen?
2. To what extent can exceptional organizational skills that are largely invisible to its clients be the basis of an enterprise differentiation strategy?
Answer these two questions. Reconcile them using the textbook readings, personal experience, and research to develop an answer to the questions posed?
Textbook(s)/ISBN:
Pitt, M., & Koufopoulos, D. N. (2012). Essentials of Strategic Management. London: Sage. ISBN: 9781849201872
Magretta, J. (2012). Understanding Michael Porter: The Essential Guide to competition and strategy. Boston, MA: Harvard Business Review Press. ISBN: 9781422160596
Explanation / Answer
1.
Strategic business concept helps to be familiar with two distinctive strategic stages corporate pronouncements that have an effect on the character, outcome and direction of the project as a whole and business element related choices that influence only the individual SBU functioning in its own environment.
Strategic planning is thus put together in portions pertinent to individual decision makers and strategy expansion and improvement is connected to strategic execution and realization with clear and precise accountability and responsibility of operational administration.
While scheduling and arranging as extensively and systematically as feasible organizations need to keep their planning course of action as elastic and imaginative as possible. As the economic system becomes more multifaceted and incorporation of single business units into international business as varied business persists ways must be initiated to reinstate the commercial dynamism of an uncomplicated more independently tilting business composition.
2.
Effective pricing policies correlated with earnings and revenue is considered to be the decisive and dynamic aspect in the sustenance of an organization. However it can vary based on supply and demand and can be a pointer of the consumer’s ultimate value for the goods. Organization’s that make a distinction based on price can either conclude to propose the lowest price or can endeavor to ascertain pre-eminence through elevated prices.
Another part of differentiation can be through product offerings. Inventive and novel products that convene consumer requirements can be a part where a business can have a plus point over opponents. The chase of new-fangled product offerings can be expensive as research and development, manufacture and marketing expenses can add up to the total costs for an organization before the product is actually been accessible to the consumers which in fact can be considered as the riskier kind of differentiation however it can considerably payoff to a great extent as consumers can attempt to be among the first to have the new product.
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