内容发布更新时间 : 2024/10/22 13:41:41星期一 下面是文章的全部内容请认真阅读。
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diversification is where the company has no previous experience in the market or industry. This strategy could be used in a company with many competitors in the same industry. And its products are on the stage of market saturation, and not
perform as good as other competitor. Then the company could choose to produce
new products in a different industry. At last it will attract new consumers and increase the market shares.
2.2 Differences and Relationships between Strategy and Strategic Choice
Business strategy includes planning choice, implementation and evaluation that guide the company to gain great profit and success. An inspired and clearly strategy would bring about successful, while a weak or unsuitable strategy may result the company astray.
Strategic choice is consider the competitive advantage, the influence from environmental, the pressures, and then make a decision about the company future.
In Alphabet Game, the strategy may be faced more choice. In this case, we could know that AG Company was a small-size company therefore they chose the cost focus strategy. The main difference between the business strategy and strategic choice is that strategic choice is a step of business strategy not a strategy. But it decided the best choice for organization strategy.
2.3 Influence of Two Different Business Strategies Current
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From the case, we could know that at the beginning, AG Company is a small-size company and lack of differentiation. And it only has fewer clients and low value manufacturing. The company began as three friends in 2001, house research, development and production which rank alongside any of its comparable competitors. According to the case, we could know that the cost focus strategy is most suitable for AG Company. They need cut down the cost by managing the value chain effectively. In AG Company, production cost have tripled in recent years with the introduction of next generation games consoles, the manager could make some decision about cut cost. Finding the new low-cost purchasing channel, purchasing the high quality materials cut the waste, saving the materials, improving the labor skill to improve the working efficiency. As the matter of fact, managers are considering all the possibility to cut down the cost. With the development of industry, there will be more and more consumers’ demand variety. Therefore AG Company needs to make a change about the strategy to meet new challenges. Future
Consumers need expectations of appearance, movement and behavior has raised the bar in terms of graphic believability and authenticity. These make a request of new technique and creative. They should carry out the differentiation strategy to create the totally different products and service to customers aiming to have their competitive edge. AG Company should increase the investment in
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research and development to create unique goods and services.
The new function marketing and educational tools, internet competitive marketing are the unique products offer to consumers. Company used the marketing or educational tools to clients. The rise of internet competitive marketing has also provided substantial opportunities and AG has striven to be at the forefront of that development.
2.4 The Forces for Change
2.4.1 Market/Industry Knowledge
Some market/industry knowledge is necessary to AG managers. By environmental research, we could clearly know the trends of market and the need of consumers. And by investigating the consumers, AG Company will realize the game worlds must react in a realistic manner and expectations of appearance, movement and behavior has raised the bar in terms of graphic believability and authenticity.
When the managers have collected this information from consumers, AG Company would make the right decisions for the future development. They would focus on the new technique research and development and improving the staff skills. Therefore the market/industry knowledge is full of importance and it could affect the future and development of AG Company.
2.4.2 Sufficiency of Resources and Capabilities
When AG Company carries out a strategy, they should ensure that AG Company
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has enough resource and capabilities, the reason of which is that enough resource is the requirement when do the researching and developing of new products and service.
In AG company, production cost and technological cost have risen most sharply in relation to graphics as HD gaming requires large scale investment in staff and equipment., therefore , AG Company should add the investment capital in production and technological to meet the ever-growing demand of new production and services.
With the development of AG Company the demand of resource would become larger and more various. AG Company should more focus on the resource channel and capabilities.
2.5 the Effect of Business Strategy
After analyzing this case, the better business strategy for AG Company is differentiation. This choice will bring many advantages.
The first one is that it could help AG Company make more profits. AG Company select the differentiation strategy, then it will give the consumer a clear reason why choose them, such as the high-quantity of product and products with unique technology.
The second one is that it could improve the innovation ability. AG Company uses the flash game as marketing or educational tools that is a innovation. It not can increase the sale, but increase the innovation competitive advantage which
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has provide a long-term plan for AG Company
The third one is that it will secure the customer loyalty. It makes the substitute goods have no strength in performance. Consumer will continue use this software until the new production appears.
The last one is that it will increase the market share of AG Company. According to this case, we can know that there are many competitors in this industry, such as Microsoft and SONY which hit AG deeply. The product saturated lead to the lack market share. Therefore AG should innovate its unique product which has its own feathers like the games used as promotional tool and educational tool. Thus many consumers would become be willing to buy them, and the market share will increase quickly.
2.6 the Role of Management
With the development of AG Company, it has met with some troubles. If AG
Company want to solve this problem, it is necessary to change the strategy.
There are four strategic steps to change the management: strategic planning, strategic choice, strategic implement and strategic evaluation. Strategic Planning
Strategic planning manager is a designer of new strategy who should identify the problem and find the innovative ways to solve it. For the AG Company’s future, it is full of importance to change and design a innovative method. Strategic Choice
Strategic Choice manger takes the role of a decision maker. They have enough rights to decide the organization choice about strategy, the way solve the problem and the development of future. They make a decision that Alphabet try to differentiation
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