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Alternative Courses of Actions (ACA’s)

1. Utilize human capital from acquisitions and partnerships


The human capital strategy plays a key role in achievement of the organization‘s overall business
strategy, resulting in greater competitiveness, excellence and innovation.
Advantages:

 This will help to develop more sustainable competitive advantages to generate long-term revenue
growth
 This will benefit the moral and mental well-being of employee because they were better trained
and more productive

Disadvantage:
 Assumes greater education will always bring about higher income

2. Continue expansion through acquisitions and strategic alliances


a popular business strategy for companies looking to expand into new markets or territories, gain a
competitive edge, or acquire new technologies and skill sets.

Advantages:

 It allows for an evolving business model and it saves time


 Ability to eliminate entry barriers to new markets
 This will help to improve market power and economies of scope
 Partnerships will result in increased user engagement through enhanced advertisement
opportunities for businesses and the creation of engaging applications
 Sustained enforcement of dominate developer-centered culture through coaching to provide
constant embedding of continuous progression and innovation
 Speed to market is vital, and strategic alliances considerably improve it
 Adequate suitability of the resources & competencies of an organization for it to survive.
 Making it possible for each partner to concentrate on activities which best match their capabilities

Disadvantages:
 A number of alliances can involve a clash of corporate cultures or the perceived diminution of
independence
 One partner which handles all of its business internally must now depend on a second partner
 It can become a distraction and may create confusion within the marketplace

3. Implement strategic pricing structure for advertising opportunities

This approach recognizes that people often make purchasing decisions based
more on psychology than on logic, and that what's most valuable to the customer may not
be what's most expensive to produce.

Advantages:
 Its pricing strategy is unique in a way that the company allows businesses to advertise on its
platforms with a small budget
 This will give the customers an opportunity to set daily or lifetime budgets for advertisements
and they have a total control over the advertisements in terms of choosing the appropriate
audience and editing or stopping the budget at any time
 This will lead to opportunities to increase the prices and revenue while monitoring the
competition

Disadvantage:
 If Facebook just focuses on competing with the other players in the market, there is a risk of
losing from margins

4. Service diversification

This is a corporate strategy to enter into a new products or product lines, new
services or new markets, involving substantially different skills, technology and
knowledge.

Advantages:

 It will capitalize on alternative revenue generating opportunities other than advertising


 Better internet communication and it is free
 It helps you to maintain a good relationship with your customers

Disadvantages:
 Limits the growth opportunities for an entity
 The focus on the operations will be limited, thereby limiting the innovation within the entity
 Lack of expertise in the new field can prove to be a setback for the entity.

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