The Pros And Cons Of Strategic Choice

Decent Essays
Strategic Choice

We are in a high-technology field. The scope of our business is high-growth venture, and we intend to achieve rapid growth and high profits on investment, introducing a wide variety of new products and services to a large market.

Strategy is not possible to create perfect, even the most sophisticated strategy evaluation cannot possibly anticipate all the detailed problems which might be encountered in the implementation of a strategies. So, it is necessary to understand that strategic decisions will be redefined and reevaluated constantly.

We select mentioned strategies against company 's objectives and by using judgment of the situation on the available facts, and seeing how different strategies will fit the overall mission
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We will mainly rely on three generic strategies: (1) low-cost, (2) differentiation, and (3) differentiation-focus. The extent to which either can be put into practice will depend on the extent to which the company can configure, the set of resources and skills required for the implementation of such strategies.

Low-Cost

A price advantage without a significant cost advantage is not sustainable in the long-run. Sustainable advantages normally center on true product innovations and superior product quality, customer service and on combination of all three.

This strategy is concerned with building and sustaining competitive advantage through continued attention to cost structure and cost advantages. It is also important to give particular attention to achieving simplicity of operating processes and lower cost distribution systems.

Gaining cost advantage is wide area, which in our company start from cost of development and cost of distribution and service after sale, but is mainly based on:

* Assess to low cost professional personnel engaged in development of software
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The strategy should also be differentiation throughout the potential market. The greatest concern will become to gain market share. Our differentiation strategy also targets the broad market but emphasizes non price differences among products.

Differentiation

Our objective with this strategy is to position our products in the market as unique. By differentiation is meant the provision of a product and service, regarded by the user as meaningfully different from competition.

Company has to be perceived by customers as a unique, with an image for reliability and quality, which it seeks to ensure through a carefully coordinated mix of training, product and quality specification, control at channel level, high levels of technical competence within the company, and strong company values supportive of the quality image.

To gain competitive advantage, differentiation strategy play important role. Differentiation can be achieved in many ways, and two main are: (1) through product/service differentiation, and (2) within the value chains of channels of distribution, and customers. Considering value chains of channels and customers, differentiation could be achieved through way and design structure of approach to them, margins, terms and sales conditions,

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