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You have been promoted to Director of a mid-to-large sized company. You operate in 2 locations, on
the east and west coast. You currently employ about 100 people and you manufacture
electromechanical devices used in the medical field. Your company has enjoyed growth and success
in previous years with good market share. Unfortunately, due to the slumbering economy, profits and
market share have decreased amid increases in operating expenses. Your job as the new director is
to strengthen the company's competitive position.

Please do the following:

 What type of strategy would you employ to counteract the decline in profits and market
share?
 Would it be an offensive or defensive strategy, or a mix of both?
o Please justify your answer.

 Give details pertaining to the strategy you have chosen; first mover, fast follower, mergers and
acquisitions, outsourcing, or strategic alliances.
 What impact did any of the 5 competitive forces have on your decline?
 What would you have your management team do specifically?
 What role will they play in the recovery?
o How will you monitor or otherwise ensure that unethical behaviors are minimized?

 What efforts will incorporate to ensure that you have a strategy for re-training employees, or
hiring new employees? Make sure you outline specific goals that your strategy must meet, and
how you will measure meeting these goals using quantitative and/or qualitative measurements.

Strategies to improve company’s competitive position in the market

Aish Regmi

Westcliff University

BUS 390 Development of Business Strategy

Professor Paras Dotel

September 30, 2020

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Abstract

This paper includes the strategies for the electro-mechanical device used in the medical field,

which is facing the loss of market shares. The paper includes proper strategies for the

company to gain back its market share and effectively run in profit in the future. Paper holds

strategies like, defensive and offensive strategies which are also linked with outsourcing

strategies, which helps the company to save time and resources. The paper also discusses the

role of management, ethical standard, and the process of hiring in this difficult scenario and

ways to change them.

Keywords: Strategies, organization, outsource

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Strategies to strength company’s competitive position in the market

The company is a mid to large-sized company that operates on both the east coast and

west coast and makes electromechanical devices that are used in medical fields. The company

is facing a problem as its market share is declining and the profit level is also decreasing. The

company in the past was successful, but the economic condition and various other factor have

contributed it to be underperforming in the market. Here I have been promoted to the position

of the company to strengthen its competitive position in the market.

The mixture of both Defensive and Offensive Strategy

Being the director of the company, in a time of decreasing market share and market

growth, I would be using the mix of both defensive and offensive strategies to save the
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company from a decrease in market share and growth. In times like today, only one strategy

may not be enough to guide the company into the new era of success so, using both the

strategies will be very decisive. We know defensive strategies focus is on retaining costumers

as well as the market shares taken away from the competitors, whereas offensive strategies

focus on ideas to stay ahead of the competition. (Tournois, 2012).

Initially, I will be focusing on the offensive strategy which contains pieces of stuff

like, Research and development, as I have already mentioned my company is all about the

electronic product used in the medical field, research and development will help me to gather

information, collect data from various sources, collect idea, build concept and make the

appropriate product regarding the market. In addition to this research and development,

brings advancement in a product that would provide a more durable and have a competitive

advantage. In this way, research and development improve the company's productivity to

expand with the new product. Now, moving on to defensive strategy, it is basically about

things like marketing, advertisement, and various campaigns. This strategy will be a help as

the decrease in market share can be controlled with various advertisements and partner

campaigns. As a strategical place, commercial advertisements can boost up the companies’

performance in the market. Here, in this case, the company was unable to do successful

campaigns and promotions for the product, which reduced the market share. The targeted

consumer can be targeted using successful communication techniques, such as social media,

celebrities, newspapers, fitness magazines, and public relations, etc.

Appropriate strategy

Given the list strategies such as first mover, fast follower, mergers and outsourcing

acquisitions, outsourcing, or strategic alliances, I will be leaning towards outsourcing

strategy. The outsourcing strategy is selected for many purposes as outsourcing decreases job
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and project costs, brings on innovation, solutions, operational expertise, time quality

teaching, and management. As the company is losing market share, outsourcing is the best

way to gain market share, as outsourcing is generally done to decrease the operational cost, as

the operational cost decreases the cost of the product will also decrease which will help the

product the momentum in the market (Zhu et al., 2001).Looking at the company’s budget, it

would be more reasonable and cost-effective to assess such a weak position and outsource it

in that position. In comparison, it would be easier to outsource the component of

electromechanical devices rather than to reduce the running costs of the productions, rather

than to manufacture electromechanical devices.

Another thing we can do is outsourcing digital marketing to the appropriate company.

This will be the best way to promote the brands of our company through various digital

platforms in more creative ways. also, as operational costs are decreased then the remaining

costs can be utilized in various other sectors such as research and development as well as

marketing, our attention will be on product research and development. It could be better not

to hire any expertise because hiring is more time-consuming and expensive rather than we

can outsource in the most cost-efficient way.

Five Competitive Forces impact

Porter's Five Forces is a model that defines and analyses five competitive forces in

each business, helping to identify the weaknesses and strengths of the business. It the

organization to study from a different perspective to understand either to enter or not to enter

into a particular business. It improves analysis from consumer, business, consumer power,

suppliers, distributors, and promotions to analyse the situation for customers and draw up an

effective competitive strategic strategy and decisions. (Kautt, 2008).

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In the time of decline of the market share, the buyer will always have the bargaining

power over the company, and company cannot do anything because the consumer will have

the substitute product within their grasp. If we talk about the company then it will have very

low bargaining power due to the options that consumers with better combativity and price.

In our case I think that the competitive rivalry was the main reason for to loose our

ground in our market, as our competitors looked into various methods to reduce their

operating costs well as had more money to spend on research and development which left us

behind. Also, the new entries also helped in our decline as they entered the market with more

innovation in the technology with cost effective markets well as better marketing techniques.

Role of management

We first need to find out the real cause for market decline before drawing out any

strategy. We need to find out the problem of the market decline. Management and its group

play a major role in the business and in handling the majority of the strategic positions

because that management group addresses the issues and offers a solution to the problems

that may arise in the organization. In this case, management will understand the issues and

eliminate the main problem that has been responsible for the market decline. management

will also be looking to bolstering the profit of the company by reducing the operation cost

also reducing the expenses by getting rid of some of the unskilled manpower to generate the

necessary funds to carry out further plans. This other role of management is also to look at

the basic kinds of stuff such as setting goals, employees motivation, managing daily
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expenses, looking over operating expenses, organizing tannings for staff, delegation, etc.

("Management Team Definition | What is a Management Team", 2020)

Similarly, to gain market share back and make more sales management should put out

sales strategies such as advertisement, promotions, and more coverage in the market and

digital marketing. A costly aspect of advertisement, digital marketing, and marketing

strategies may also separate budgeting easily by careful planning. The partnership between

departments of advertising, finance, operations, and HR will minimize unnecessary costs. The

business must also continue with the movement to improve brand name and commodity with

online advertising and physical products.

When I speak of ways of mitigating unethical behaviour in my business, I shall ensure

that both workers and managers should analyse the company policies regarding ethical

behaviours and open to address managers according to the same standards as employees. In

addition to assessing the ethical actions of each employee, also evaluating managers on

ethical leadership practices. Incorporating company values into all business activities which

establish ethical behaviour and honesty. also, Provide and implement standard industry

opportunities for career growth and ethical behaviour.

Hiring and retaining employees

A company cannot run effectively on the market if its revenue is lower than its

expenditure, so in the process of hiring we always should think of reducing the cost and

always try to be more cost-efficient. we should be focusing quality rather than the quantity,

and the hiring process should be done on the base of skill as our company is a technological

innovation company. I think that, if the worker does not have a good job ability it is best to

say goodbye and replace him with more skilled manpower.

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. In case this, when my company is in crisis, I would find employees within my

organization rather than spending funds and looking outside in the first go. because rather

than spending money on new employees in the organization, we can spend that money

somewhere else .my first priority will be skilled employees within the organization. As it will

also be easier to incorporate the culture of the organization to the employees who are

currently working there, as well as I will be reducing the no of employees and focusing on

skilled based approach When it comes to recruiting new employees, I outsource workers who

are more qualified at the role and I will go for the people who will be able to who saves time

and resources Also, after the new team formation is completed I will be conducting an

especial professional training, like abilities training, quality training, soft skills development,

leadership development, skill-building, and safety training, I will offer different training for

all employees according to his/her requirement.

Conclusion

At last, what would I like to say is that using a mixer of both defensive and offensive

strategies will have a great effect in overturning the fortune of the company meaning that,

these strategies will help in gaining the market shares again. Not only that by the help of the

outsourcing strategy company can also have a huge reduction of operating cost which can

later be used on other aspects of the organization like Research and development strategy, As

I said already, the capacity of management and its teams to play an effective role would avoid

a minor issue and coordination with each department will help for the success of the

organization. The unskilled and unwanted employee must be eliminated as well as the
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acquisition of younger and skilful talents generates new vitality that is more valuable for the

business.

References

Hernández‐Espallardo, M., & Delgado‐Ballester, E. (2009). Product innovation in small

manufacturers, market orientation and the industry's five competitive forces. European

Journal Of Innovation Management, 12(4), 470-491.

https://doi.org/10.1108/14601060910996927

Kautt, G. G. (2008). Blueprints for strategy: After you've examined your five competitive

forces, it's time to devise a strategic plan for the near future. Financial Planning,

Volume 38(41). Retrieved from:

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https://search.proquest.com/docview/210926784?accountid=158986

Management Team Definition | What is a Management Team. SyndicateRoom. (2020).

Retrieved 30 September 2020, from

https://www.syndicateroom.com/learn/glossary/management-team.

Thompson, A. A., Peteraf, M.A., Gamble, J. E. & Strickland III, A. J. (2018). Crafting and

Executing Strategy. New York. United States. McGraw-Hill Education. (21st Edition).

Tournois, L. (2012). Mass market leadership and shampoo wars: the L'Oréal strategy. Journal

Of Business Strategy, 34(1), 4-14. https://doi.org/10.1108/02756661311301738

Zhu, Z., Hsu, K., & Lillie, J. (2001). Outsourcing – a strategic move: the process and the

ingredients for success. Management Decision, 39(5), 373-378.

https://doi.org/10.1108/eum0000000005473