Generic Strategy and Intensive Growth †Free Samples to Students

Question: Discuss about the Generic Strategy and Intensive Growth. Answer: Introduction: The excellence of the car manufacturer Toyota starts from its lean manufacturing process to the other business strategies including competitive strategy or growth strategy have always been important in the field of business management. Toyota has managed to rank as the best car manufacturer in terms of overall productivity, highest profit margin as well as the best application of innovative models in the business (Thompson 2015). The brand is well accepted all over the globe due to its reliability, quality and long term durability. Toyota has managed to occupy the market of USA, UK and Asia even in the presence of other tough competitors like Ford or GM Motors. Toyota has been found to apply different business strategies in its business activities. For instance, the organisation uses generic strategy and the intensive growth strategy as a continuous process in the business activity. The generic strategy includes the combination of the cost leadership and broad product differentiation strategy (Wesswling et al. 2015). In terms of product differentiation, the car manufacturer has manufactured sedans, SUVs and even small cars that are easily affordable. Thus, the company has different types of cars to offer to the different groups of consumers. The company has adopted the cost leadership, thereby reducing the price of the cars in order to increase the demand of the cars in the market. The method adopted for this strategy is known as just-in-time manufacturing method that in turn reduces the time and expenditure that is required for the manufacturing of the cars (Jayaram et al. 2014). This way, they can offer their cars at a lower price and can gain the advantage by the means of pricing strategy. On the other hand, the differentiation strategy has to ensure the global competitiveness for the organisation. In order to carry out this particular business objective, Toyota has adopted the innovation techniques in order to address the business strategies (Thompson 2015). This has automatically leaded to the creation of an attractive market segment for the company. In terms of intensive growth strategy, the car manufacturer has always intended to expand its business in the prospected regions where there is attractive target group of consumers. For example, Toyota has captured the market of UK and Asia and became one of the leading car companies in these countries. In order to undertake expansion strategy, the company has undertaken the approaches of market penetration, product development and market development as well (Zamberi 2014). The only aim of the organisation is to create a global presence that would be supportive and intensive towards the growth of the organisation and to create a global presence as well. Innovations in the manufacturing and designing of the cars have helped the company to get more recognition in the market and to beat the tough competition in the market where it operates (Wesswling et al. 2015). Thus, Toyota is an apt example that has undertaken new and innovative business strategies that has gave it the global succes s. Organisation 2: Samsung Capturing the global smart phone market even in the presence of smart phone giants like Apple and Nokia (Now Microsoft) has proved the business strategy and the ability of Samsung as a successful product in the competitive market. The Galaxy range of mobile phones has given the most need opportunity that the company wanted to become successful in the area of its business (Bharadwaj et al. 2013). The company has thoroughly adopted the business and the competitive strategy in order to grab a good market share in the region where it operates. Like Toyota, Samsung has also successfully captured a good market in the market of USA and Asia. A number of corporate business strategies of Samsung can be mentioned here that has helped the Korean company to go global and grab the market in spite of the presence of huge competitors in the market. The first important strategy adopted by the mobile phone manufacturer is the pricing strategy. In comparison to the premium pricing strategy of Apple, Samsung has always come up with competitive pricing strategy in order to increase the demand of the product in the market (Park and Lee 2015). The idea of the company was to expand its business as much as possible and to increase the market share. The company has also adopted better strategies in its supply chain activities and has built up manufacturing hub in the countries where skilled and cheap labourers are easily available. Even during the phase of recession, the company had adopted the expansion strategy and proved to be one of the market capturer in that time (Song and Lee 2014). There was a logical growth in the business that h as helped the company to reach the next level of growth. With the increase in the market share, the company also adopted the strategy of diversification of the product. The mobile phone manufacturer diversified its business into other areas like manufacturing of television, computers and other electronic appliances. There is no doubt on the innovative techniques adopted by the organisation in the manufacturing of its products (Motohashi 2015). The mission of the company is to build the world a smarter planet. In fact, the innovation strategy is not only limited to the manufacturing of the product but it is equally applicable to the other dimensions of the business like leadership strategy or the organisation culture and structure. The organisation has given the opportunities to the workers of the company to come up with innovative ideas in order to increase the impact of the streaming of the products (Song and Lee 2014). The company has used the increasing impact of technology and removed all the barriers in terms of using the software and other technological processes required for the success of a company. In order to achieve the competitive advantage in the market, the company has also spent huge amount of money in the research and development in order to understand the need of the market (Park and Lee 2015). Apart from this, the company also excels in the marketing strategy as well and adopted different marketing strategies in different markets. References: Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward a next generation of insights. Jayaram, J., Choon Tan, K. and Laosirihongthong, T., 2014. 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Business strategies of incumbents in the market for electric vehicles: Opportunities and incentives for sustainable innovation.Business Strategy and the Environment,24(6), pp.518-531. Zamberi Ahmad, S., 2014. Small and medium enterprises internationalisation and business strategy: some evidence from firms located in an emerging market.Journal of Asia Business Studies,8(2), pp.168-186.