Recommended Strategies for the Cell Phone Company Essay Sample

Recommended Strategies for the Cell Phone Company

As we launch the new cell phone, there are number of implementation programs that need to be rolled out as soon as possible. The strategies that have been suggested and that can be put in place for the successful introduction into the global market are as discussed here within. To start with is the global strategy. This is a type of strategy will see to it that the new cell phone is distributed to all parts of the world that have potential buyers. The company will have to open sales stores around the world. These stores will stock and distribute the cell phones to other shops that will be willing to partner with us.

The cell phones will be as they were manufactured. There will be no alterations made to them. This is the case with the global strategy (Inkpen, & Ramaswamy, 2006). This strategy operates like this in order to maintain uniformity with the product. The cell phone could be used in any part of the world without any complications. One needs to just switch to the network provider of that country and continue to enjoy the services the cell phone can offer.

The global strategy dictates that there be a central office that will coordinate the sale and distribution of the new product. This is the case because the proper accountability and book-keeping necessary. The cell phones will be collected and assembled in the head office which will be here and then dispatched to the stores all over the world. This way the company will be able to supervise the sales and get to know which country has the best market for the cell phones. Also, this central head office will be able to collect the money that will have been made from the sales of the cell phones. This will ensure that no money is lost by our intermediate parties since as Mahajan, Wind & Wind (2001) notes the strategy streamlines distribution and financial process.

This strategy will direct us to set up businesses in places where the sell of cell phones already exist. This will be in the aim of competing with the already existing cell phone sellers or manufactures. This will enable our company to be creative in its marketing and be tactful in competing fairly.

Another strategy that can be employed to assist in the rolling out of this new cell phone is the diversification strategy. This strategy directs the company to compete with the already existing service providers but in a different way from the global strategy (Kenny, 2009). It is somehow almost contrary to the global strategy. This strategy decentralizes the control of the sell of the product. This is a different way of managing the resources as each country heads the sales and marketing of the product. These many offices will be independent and thus make their own decisions with regard to the daily running of the business. This strategy empowers the local offices to initiate tactics that are favorable to the way business is conducted in that country.

If we are going to use the diversification strategy, we will have to make some modifications to the cell phone. This strategy dictates that the product be modified to adopt the needs of the customers. In this case, if we are going to sell the new cell phone to places where access to electricity is limited, then we can modify it to enable it have a rechargeable system using solar energy. Another modification that can be brought if we adopt this strategy is the level of advance features that it can have. If the literacy level of the market is high then advance features may be introduced into the cell phone and vice versa. This is contrary to the global strategy, as earlier mentioned, that will ensure that the cell phone remains uniform throughout. The uniformity will cut down cost of production and will reduce the level of defects and complains from the customer.

With regard to the above strategies, my team sought the means by which competitive advantage could be achieved. In the case of global strategy, in order to beat our competitors we could enter the market with the lowest prices as possible. This will enable us to penetrate the market easily as we will be offering the same quality or even a better quality of cell phones at a cheaper price. This move will enable us to sell as many cell phones as possible thus get profits through its sale in volumes. This is one of the strongest moves that we can make in order to be the most popularcompany.

However, when we roll out the new product using the diversification strategy, we will have to raise the cell phones’ prices a little bit. This will be the case as we will have to modify the cell phones with regard to the targeted market. In order to compensate for our additional costs, the launch price will be higher as compared to the one that would be set when using the global strategy.

According to Kenny (2009) diversification strategy may direct us to introduce a new product in the market that may not necessarily be a part of the cell phone. The two products may be launched together in order to woe customers to buy our new cell phones. The other option is to roll out a new product that will pave way for the introduction of the cell phones. This way of achieving competitive advantage is more involving.

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Also, diversification strategy could be used to achieve competitive advantage if our company merges with a smaller company that has already established its way into the local market. This would be easier for us to sell the new cell phones through an already established and a well-known company.

The market target, while implementing the launch using global strategy, will be the middle-income earners as well as the low-income earners. This is because the cell phone will be offered at an affordable price to ensure that we sell as many as we can. This is different from the diversification strategy that will target the upper middle class together and high income earners who have a high disposable income to be able to buy the cell phone that is has been modified to suit their personal needs.

As a team we recommend focus and diversification strategies. Focus strategy is a strategy made up of several approaches adopted from broad market approaches. Using the focus strategy enables a company to attend to the needs of particular categories of customers by meeting their specific needs. This means that the company only targets a specific type of customers instead of going for every niche of the market. On the other, as already discussed above, diversification strategy involves decentralization of the market with every region or market heaving a head office to oversee the companies in that region. The strategy takes into account the needs of a wide range of customers, thus encouraging production of a variety of products.

Focus strategy is recommended because it will enable the company to serve a specific niche of customer effective thus outdo the competitive in this particular niche. It allows use of minimal resources which are directed at specific value chain activities that ensure the company gains a competitive advantage. Our company can gain the advantage of serving markets that have been underserved by other established competitor and at the same time minimize cost. Diversification strategy will allow the company to access a wide range of customers due to the production of numerous diversified products.

The global strategy is less expensive in the cost of production though it does not meet the clientele’s personal needs. The diversification strategy is however easy to implement with the knowledge of the market’s needs. This strategy will lessen the work from the head office and will ensure efficiency in its sales and marketing. Its set back is that it will take some more time to put in place offices and its machinery for a smooth run. Focus strategy has the advantage of knowing the market needs and catering for the narrow niches that the large companies may have overlooked. The profit margins may be high because of minimal competition.

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My team finally agreed that it would be more favorable for this company if we could adopt the focus strategy followed by diversification strategy in the launching of our new product. This decision was adopted after deliberation that took into accounts the pros and cons of all the above discussed strategies. The strategies emerged superior thus encouraging their adoption.

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