INSTRUCTIONS: Please RESPOND to this answer from the Point of view as a student. Use credible sources and respond as if you are a manager of a marketing agency. Tell this student what your marketing agency would think of each of these answers from a Management perspective in about 4-5 paragraphs:
Knowing-Doing Gap firms are better at generating new knowledge than at creating new products based on that knowledge. It is caused due to the fact that the strategy formulation process isn’t shared with those stake holders including managers, who should be integral part of that strategy. It is also caused by that, even if all the right stakeholders are included in the strategy formulation process, management fails either to determine if all the proper implementation levers are in place or to take appropriate strategic leadership actions. Sometimes, it caused by the organizational culture which is difficult and time consuming to change. Companies with strong culture are successful at implementing the change than companies with different set of values at top management levels and other leaders (Carpenter & Sanders, p. 239, 2008).
In SSM, we try to avoid this by discussing as team and also making sure that we look at the pro forma financial to see how our decision impacts the net income and overall financial. It doesn’t come out as planned since sometimes, we try doing upgrade to the cars but see that sales didn’t go as planned since we may have lacked in marketing.
My Company A integrated key elements by taking following actions which are:
Arena – We implemented this by concentrating on Family and luxury cars. We also made major and minor upgrades to the cars to increase market share and at the same time, more appealing to the consumers. We also entered into contract with rental cars companies and other governmental agencies. We also increased our coverage in each region based on the need and at the same time, increased dealerships. Training and support for dealerships was increased so that they have knowledge about the cars so that they can sell better.
Staging – For this, we used strategy of to be first in the market but at the same time, made sure that our timing is correct because that can significantly affect our company. If we are the first mover, then there are certain advantages and disadvantages of being that. First mover can get the brand recognition and brand loyalty, also has more to refine their processes and product. But it has disadvantages such as first movers bear the economic burden of developing a new market that followers into the market can exploit, followers into the market can learn from the mistakes of the first movers, allowing them to reduce their risk and avoid making costly mistakes. We studied market, looked in to the competition and economic environment before introducing new car or any major upgrade.
Vehicles – Company A issued bond to make sure that company has enough cash while they are investing in new car or doing major upgrades to the current products. We also entered in to contracts with few rental car companies and also put forward proposal for bid for few government agencies. We did get contract for one of the rental car companies. In addition to that, we added new development center so that we have enough inventory on hand.
Differentiators – Since cars being tangible property can become commodity in the market soon so only way to differentiate is by providing better service to the customers. To do that, we spend on dealer training and support so that they become expert on cars and can sell better. To differentiate our product, we increased attributes for safety and quality since our market focus was families and high income earners. We introduce new luxury cars which had more horse power, higher attributes rating compared to competition in terms of safety and quality.
Economic Logic – Company A invested in development center so it can produce more units in house while making sure it utilizes production capacity wisely. We were operating at close to production capacity so that we can spread fixed costs over more units which reduced our cost of goods sold. We were also tapping in to the business to business marketing to get the contract from rental cars and other government agencies. We were targeting businesses since they need cars in the bulk and at the same time, it allows company to gain market share by increasing investor confidence.
Carpenter, M. A., & Sanders, W. G. (2008). Strategic Management: A Dynamic Perspective. Upper Saddle River, NJ, USA: Pearson Education, Inc.