BOMBASTIC PHOTOGRAPHY BUSINESS STRATEGIES
BUSINESS STRATEGIES 12
BOMBASTICPHOTOGRAPHY BUSINESS STRATEGIES
Strategicscopeof Bombastic Photography
Thefirm’s mission was to provide clients with high end technologicalproducts for documenting life stories and information through highquality digital cameras at affordable prices. In order to capitalizeon the market growth, a focused attention was directed to improvingproducts through integration of new technologies in the productsdevelopment. In addition the firm would increase sales volume as wellas global market share by linking customers to retailers. This wouldbe achieved through aggressive online advertising campaigns to allowcustomers research on the firm’s products, nearest retailers or buyproducts online.
Toachieve this mission of providing global customers with high qualityaffordable digital cameras and have an equal footing withcompetitors, Bombastic Photography used, Porters low cost strategy.This meant that its operating decisions would support the financialand strategic company’s objective making decisions on marketingexpenditures, manufacturing, labor costs and investments. Thestrategic Company objective of Bombastic Photography was to growglobal market share by more than 10% in next five. Under the tacticalobjective the firm wished to establish aggressive online marketingand education to clients on the quality of the firm’s product byproviding information to clients on where to get the productsretailers and achieve a high image among the clients.
Strategicstrengthof Bombastic Photography Firm
Thestrategic strength of the firm was to dominate the African andEuropean markets with continued aggressive online marketing tomaintain the domination in the market share, setting high qualityimage to clients and continued improvement on products quality. Thefirm’s strength lay on corporate social responsibility andcitizenship through promoting environmental sustainability in greeninitiatives, energy programs and good working environment foremployees.
Toachieve these objectives, the firm employed a number of strategicactions that involved market strategy, using tactical objectives inmarketing using entry level and multi-featured assembly strategies todistribute products. In addition the firm developed laborcompensation strategy which involved giving employees competitivebonuses and enhancing their morale. Another strategy employed toachieve business plan objectives was through financial strategyfocus was directed towards market growth by capitalizing on regionsthat the firm have high sale stakes.
Actionstaken to gain sustainable competitive advantage by BombasticPhotography Firm
Accordingto Porter, firms with high market share were more likely to beprofitable than firms with low market share while the leastprofitable firms had moderate market share. Porters arguments werethat, firms with high market shares are more successful because theypursue cost leadership strategies. Similarly, firms with low marketshares are successful because they use market segmentation byfocusing on small but profitable markets while firms with averagemarket shares were less profitable because they did not follow anygeneric strategy in their quest for sustainable marketcompetitiveness. In this aspect, Bombastic Photography firm usedmultiple strategies to ensure its competitive sustainability. Thiswas achieved through a combination of market segmentation strategies,product differentiation and labor compensation strategy. As such bypursuing market segmentation, product differentiation and low coststrategies made Bombastic firm successful.
MarketSegmentation strategyused by Bombastic Photography Firm
Bombasticfirm had steady market domination in the European and African marketsbut intended to create more dominance and enlarge its market shareglobally through aggressive online campaigns and education. Mostspecifically the firm targeted four regions to increase its salesvolume and global market share. This would be achieved through onlinemarketing campaigns, education and information to clients regardingproduct retail outlets in their region, enhance more online productsales and improve the firms image. The targeted market regions wereEurope-Africa, Asia-Pacific, Latin America, and North America
Inaddition, to enhance its competitive sustainability, the firm deviseda market strategy which would be used to identify profit sanctuariesof competitors and strategically sell the products, localize them andclose in the profit gap as well as minimizing competitors influence.In the same line, through market segmentation the firm sought toshrink wholesale prices of its entry level products and closelymonitor distribution retailers in the focus market regions tomaximize sales. This close monitoring would aid in forecastingexchange rates and ascertain the right time to ship products when therates would be favorable thereby decreasing money loss fromunfavorable exchange rates. All this enhanced sustainablecompetitiveness of Bombastic Photography.
Productdifferentiation strategyused by Bombastic Photography Firm
BombasticPhotography relied on product differentiation as its mainsustainability competitive advantage to its target customers. Todifferentiate its products from competitors and provide clients withunique products in the saturated markets, the firm employedaggressive efforts through research to develop new unique productsfor clients. The firm also established low cost products as itcontinued to research, produce and distribute camera products. Toproduce high quality camera product and ensure firm competitivesustainability, the firm brand partnered with American Armed servicesto develop high edge innovation product. In addition this partnershipwould help promote product uniformity. By partnering with UnitedStates Armed services, the firm’s product would have morecompetitive advantage by showing consistency in quality andreliability.
Lowcost strategyused by Bombastic Photography Firm
Usingthe entry level assembly of customized products of reducing theproducts prices the firm aimed to have a competitive edge against itscompetitors. In this strategy, the firm intention was to enter themarket with low price product as it continued improving its productquality. The products prices would continuously be lowered withoutcompromising the products quality and features this would attractmore clients and lower the influence of the firm competitors. Toenhance more market campaigns and distribution of product, the firmsought to enlist the services of Amazon, Face book and Apple to reachmany clients globally.
Inaddition, using the low cost strategy the firm sought to continue itsdomestic production rather than outsourcing this was to enhancecentralized production, designs and research control this would edgeout competitors who copy production and marketing strategies.Furthermore, this would help craft singular experience on imagingtechnology without having similar products as those of itscompetitors. In addition, to produce more unique products, the firmwould adopt a horizontal integration partnership with firms thatproduce great design products but lack capacity to manufacture. Thiswas to allow the firm integrate great technological designs in theirproducts and have a competitive niche in the market.
Competitors’sustainable competitive advantage
Thecompetitors of Bombastic Photography had large sales volume in theglobe thereby having strong market share, their revenues were alsohigh from the high sales volumes. Mostly the competitors producedhigh quality products which had brand recognition unlike Bombasticphotography firm. The competitive advantage of most competitors werearchived through the use of new digital technologies in theproduction of products, aggressive marketing strategies, creatingbrand image and product brand name, and having a foothold in allmarkets. In addition the competitors implemented similar strategies,matching marketing and production aspects as those of BombasticPhotography thereby making competition stiff.
OffensiveStrategy usedby Bombastic Photography Firm
Inorder to capitalize on firm’s strength and exploit opportunitiesBombastic Photography embraced a number of strategies to cut on theinfluence of their competitors. This would be done by adoptingPorters low cost strategy. The firm would exploit opportunitiespresented in the global market competition where the main competitorsonly provided customers with high cost products. To close in thisgap, the firm strategized on manufacturing low cost but high qualityand affordable digital cameras for the clients all over the world.Another strategy to be adopted was the continued research anddevelopment in their products using vertical integration approachwhere production and design would be centralized in one place to havea singular customer experience and improve on their products unliketheir competitors who relied on outsourcing production.
Inaddition, the firm devised an elaborate plan to increase its sales,customer’s awareness and retails through aggressive onlinemarketing and keeping stable links with retailers to ensure thatproducts were available in all regions at the right time. By usingsocial sites like Face book, advertising company’s like Amazon andApple products, the prospect of customer base would be high asinformation on Bombastic products would reach many clients.Furthermore, by producing low cost products with high qualityfeatures would have potential of increasing sales and market share. Creating a brand partnership with the American Armed services wouldhave the opportunity of increasing product reliability to customersworldwide and thereby increasing its sales volume and market share.
Defensivestrategy employed by BombasticPhotography Firm
Inorder to counter threats of rival firms from exploiting the firm’sown weaknessesanumber of defensive strategies would be employed. To increase themarket share and limit the influence of the competitors on BombasticPhotography products, aggressive marketing would be employed to reachmore customers. Developing an image was part of the firm’s strategyto make its visibility in the market recognized. In addition the firmused the defensive strategy to identify rival profit sanctuaries andlocalize their products to close in competitors influence, maximizeprofits and have a foothold in their markets. To close the threatsposed by competitors matching the firms marketing and productioncapabilities, Bombastic firm wished to integrate a vertical designwhich would prevent copy right infringement by competitors on thefirm’s imaging technology.
Theoverall performance of the offensive and defensive strategies wouldbe increased market share in other regions, high profits, and highrevenues, low costs of production, product quality performance andbrand recognition. These strategies would achieve these metric marketoutcomes, Latin America (20%), Asia-Pacific (30%), Europe-Africa(40%), and North America (10%), which will differ from thecompetitors.
InternationalStrategies used by Bombastic Photography Firm
Inthe business plan the firm employed the international strategy inmany of its operations. To begin with, the firms marketing strategyhad an international focus most of the products would be marketed tointernational regions beyond domestic borders and as such the firmlaid down strategies to increase its dominance in those targetregions as well as opening new market frontiers. This would also beachieved through aggressive advertisement, campaigns and makingbusiness partnership with international distribution and advertisingfirms such as Amazon, Face book and Apple.
Inaddition the firm sought to enlist product partnership branding withinternational government bodies like the United States Armed servicesand other international innovative companies in order to boost itsproduct quality. International strategy would be employed throughopening up many retails outlets in major regions where products wouldbe shipped and transactions made on exchange rates.
ResourcesShifts in the BombasticPhotography Firm
Majorresources shifts were strategized by the firm in the line withProduct development, marketing and labor compensation and corporatesocial responsibility. The firm intended to use more resources inproduct development and branding. This would be implemented throughresearch on new product features and branding. Finance resourceswould be reinvested in product development and creating partnershipswith other entities to improve on the product quality.
Similarly,to enhance market competitiveness, the firm would shift moreresources to marketing and distribution. This meant creating moreretail outlets in the targeted regions, aggressive marketingcampaigns and partnering with other international firms to enhancemore advertising and distributions. These partnerships were aimed atreinventing the firm products image and market. Rather thanoutsource, the firm would integrate all its production anddistribution process to increase its competitiveness. The firm alsosought to expand its Incentive compensation bonuses program forworkers in motivating them develop quality work and become moreproductive.
Thereis clear indication that the company engaged in social responsibilitythrough such actions as providing 1% of their operating profits forcharity, promoting environment sustainability through greeninitiative, energy programs and providing employees with good workingenvironments. In the paper, its evident that the firm had corporatesocial responsibility policy where part of donation was made toregistered charitable causes, production of environmental friendlycamera components, recycled materials used in making manuals andpackaging and ‘green shipping’. In the energy programs, there wasa concrete plan where expenditures would be used to influence aTaiwan plant on the use of more renewable energy resources. Inaddition the firm established working condition for the plantemployees through on site child care facilities, safety equipments,cafeteria, ventilation and lighting.
Thefirm’s business plan presents a tactical objective in the company’scorporate responsibility and citizenship aim to actively engage insocial responsibility as part of the marketing campaign. According tothe firm, devotion to community activities and improvement ofemployees working conditions were ways of translating the gains topositive financial impacts. By engaging in community activities thefirm was optimistic that it would create customer awareness on thecompany’s brand and therefore customers’ loyalty. Throughparticipation in the community activities the firm aimed toinfluencing and breaks into new markets such as North America. Thecorporate social responsibilities actions were taken as part ofproduct marketing campaign, creating product brand and breaking newmarkets.
Decisionmaking at Bombastic Photography
Inmaking of the strategic business plans the firm’s managementstrongly relied on myriad of decision making styles. Decision makingare based on analytical, conceptual, direct or behavioral. Directstyles of decision making are based on quick and short-term goalswhich are made with minimal information. Analytical decision makingon the other hand, is based on making decisions after carefulassessment of empirical information and are such applicable inchallenging and long-term decision making. Conceptual decision makingstyle embraces a broad approach considering alternatives they arelong term and capable of formulating long-term solutions to problems.
Analyzingthe Bombastic Photography indicates elements of rational and logicdecision making in the way they make logical decisions pertaining theproduct development and marketing strategies. There was consistencyand creativity in the way they visualized the future operations ofthe business without having any element of ambiguity or doubt. Toillustrate this, the market share conceptualization strategy was apure analysis of market forces in the world the competitors and theavailable opportunities in the market. This enhanced the managers torationally assess that the firms market share would enlarge withrenewed efforts of aggressive campaigns, use of internationaldistributers like Amazon and Face book which most competitors doleast.
Anothercase of rational decision making was the market share analysis inthis case the management seemed to have adopted the analyticaldecision making through careful analysis of potential markets todominate. Based on these decisions making style the managementreviewed their strategic plan after analyzing past businessperformance. However, the decision to review the firm’s strategicplans can be seen as a conceptual decision making in which thedecision makers were interested in making a holistic long-termdecision on strategies to use to achieve the firms objectives.
Inaddition, the firm’s tactical objectives that deal with operatingdecisions, strategic company and financial objective indicatesinterplay of conceptual and analytical decision making. In theseobjectives focus was on long term gains of the firm which were madeafter analyzing the strength, weakness and opportunities of the firm.The decision on entry level assembles and multi featured assembly areproducts of a strong conceptual and analytical decision making style.The management’s were able to assess weakness of the competitorsand drawing up strategies to maximize on long-term aspect.
Thesestyles of decision making have the advantage of ensuring long termcompetitiveness of a firm and ensure its sustainability. By utilizingthe conceptual decision making in analyzing the market share andtrends, a firm is able to maximize on the competitors weakness,product design and development which would have long term impact onthe business. The most observable advantage of this decision makingstyle is that the firm continues to review its strategies based onSWOT analysis and performance of the firm. This means the firmfocuses more on its strengths, weakness, opportunities and threats.
Theonly disadvantage of this decision making style is that it opensrisks to the firms long-term objectives by considering manyalternatives. This style of decision making is effective and hashigher chance of benefits compared to other forms of decision making.Ideally, when a firm management uses the conceptual and analyticaldecision making styles, the solutions to long term problems are foundin the various alternatives considered. This means that before adecision is made all other alternatives are left out for the bestoption which serves the firm best.
Inaddition, a conceptual decision making, leaves no room for ambiguitybecause the firms strength, weakness and opportunities are aligned inline with future expected objectives thereby closing in the gaps forlosses or mismanagement. In specific case, the vertical integrationmodel of production is a positive element of conceptual decisionmaking in which the firm will maximize its product quality, customersatisfaction, employees output and market monitoring. This wil inturn enhance a more productive and profitable firm with centralizedmanagement and innovation.