Strategic Management Essay Example | Topics and Well Written Essays - 1000 words

Strategic Management - Essay Example The company should use the generic strategies to achieve competitive advantage. These generic strategies include; differentiation, focus and cost leadership. Cost leadership strategy strongly emphasizes on working towards a goal of producing low priced products. Many people would be attracted to companies that offer lower prices for their services and products. For example, South West airlines have used this strategy, and the profits have grown immensely through application of cost leadership strategy. Differentiation strategy emphasizes on production of unique products and services that are better than their competitors and are valued more by customers. For a company that wants to make great changes, differentiations of their products is very important. Focus strategy means developing a certain market target. A focused strategy targets market segments which are less vulnerable to any substitutes or in situations where competition is weakest. This will enable a company to attain comp etitive advantage. For a business that is undergoing large change, marketing strategy implementation is also very important. A company may be undergoing a change like change of product, change of process; change of location change of product composition etc. customers may not be aware of these changes and may become reluctant to buy their products (Paley, 2006 pp.21). These changes may have a negative impact on the company if they do not follow well defined strategies. The initial purposes for change which in most cases are done with an aim of increasing profit may not be met if they are not well advertised. For example; a company may decide to change their products. When these products get to the market customers who are not aware of them may be reluctant to buy. Buyers have to be made aware of the products through good marketing strategy. They need to be made aware of the benefits of using the products. Advertisement is a good marketing strategy in the business set up undergoing m assive change. Appealing means of capturing people to buy your product cannot be under weighed (Foxall, 2005).The advertisements should be made in such a way that it targets many people. For example; advertising in popular television and radio programs can capture millions of people. Similarly, advertisements can be done by use of large and attractive billboards in busy streets. For example; using a popular celebrity in your advertisement billboards can attract more attention. Good marketing strategy should be based on well developed ideas and well budgeted. It would require a good sum of money especially if large commercial advertisements have to be done. It should also ensure that the targeted population is reached. For example; a product that targets youth should have marketing strategies that adequately draw their attention more. Strategic management theory Strategic management is the approach and the process of pointing out the objectives of an organization and implementing pol icies that will ensure achievement of these objectives. In broad term, it can be seen as a combination of the formulation, implementation and evaluation of the strategy. Management theory provides a framework for knowledge organization. It also provides blueprint for actions that can guide organizations in achieving their objectives (Parnell, 2004 pp.34). Many managers rely on these contributions that were made by past industrialists.