Strategic management can be defined as the process of formulation effective decisions that may help to overcome the critical issues that are faced by an organisation (Strategic management, 2018). A company named Pro-Go Pty Ltd. is facing various market issues such as increased sales of android phones that may affect the sales of cameras that are manufactured by Pro-Go Pvt Ltd. This report is generated to formulate strategy to find solutions for the same issue. Three different options that exist in adjacent market, preferred option and implications of the options have been discussed under this report.
Main aim of this report is “To formulate such strategies that may help to find solutions for the issues that are faced by Pro-Go Pvt Ltd.”
1. Three different options
As the Pro-Go Pvt Ltd. has a threat of decreased market share because various new phones have been launched in the market and they may acquire the market of Pro-Go Pvt Ltd.. The organisation have three different options in adjacent market (Covin and Slevin, 2014). All of them are as follows:
Launch android phone: This may be launched by the company as the users are willing to buy such type of phone who have good quality in camera (Hulland, 2014).
Introduce poly graphic camera: A poly graphic camera is good options to overcome the threat because it has a feature of providing instant pictures.
Introduce a digital watch: This is also a good option for the company as it may help to help to grab attention of the customers because it is totally different concept that may help to overcome the threat (Technology market, 2018).
2. Nomination of best option
It is suggested to Pro-Go Pvt Ltd. to select the first option in which the company may launch a new smart phone with high quality camera. This is suggested to the company because this may benefit the organisation reasons are as follows:
- It may help to attract high number of customers as mobile phones are currently in trend.
- As company is already manufacturing cameras and in this option the organisation can add their cameras in the mobiles that may help to save cost.
- This is a beneficial option for Pro-Go Pvt Ltd. because it may help to retain existing brand loyal customers and also help to attract prospect customers (Ansoff and McDonnell, 2013).
3. Implications of the option and challenges that may represent
If the organisation is launching the product in the market than there is a high possibility to get success in the market because market image of the company is very good.
- It is very difficult to make the launch successful as the organisation is going to launch a new product in the market (Freeman, 2010).
- The organisation have to control the cost for the products because higher cost may reduce interest of customers.
Organisation may have to face different short term and long term issues that are as follows:
- New competitor in the same market can acquire the market share of the company. It is a long term issue (Pearce, Robinson and Subramanian, 2015).
- Changes in the perception of the customers can affect the market.
- Technical issues may affect the organisation in short term.
- Ansoff, H. I. and McDonnell, E. J., 2013. Implanting strategic management (Vol. 2). New York: Prentice hall.
- Pearce, J. A., Robinson, R. B. and Subramanian, R., 2015. Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill.
- Covin, J. G. and Slevin, D. P., 2014. Strategic management of small firms in hostile and benign environments. Strategic management journal. 10(1). pp.75-87.
- Hulland, J., 2014. Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal. 20(2). pp.195-204.
- Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge university press.