Business Strategy of a New Business Essay Example | Topics and Well Written Essays - 1750 words

Business Strategy of a New Business - Essay Example These success drivers are obvious but it is amazing how many businesses ignore their importance. This is particularly true in difficult markets or economic recession where short term financial constraints lead to cost cutting. The mission of the new business is to provide high-quality delivery services to wide target audience. The original mission has made it clear that it is in the relatively unexploited sector that the new business sees its clearest opportunity for innovation. The new business sets out to create a range of high-quality services that are distinctive in type. The main goals and strategic objectives are to get and keep a customer. Also, the new delivery company is aimed to achieve competitive advantage and sustainable competitive creating value for their customers, select markets where they can excel and present a moving target to their competitors by continually improving their position. Three of the most important factors are innovation, quality and low cost (Chase and Jacobs 54). This technique is intended to capture the key characteristics of the environment in which the business operates. These factors, which may be supportive or constraining to the future development of the organization, provide the backcloth' against which the future strategies and plans must be formulated. In product delivery industry, corporate resources are balanced both internally and externally. Internal balance is achieved by the coordination of all marketing activity and its integration with the other areas of the business. External balance is concerned with the continuous adjustment of a company to its market environments through changes in product, price, package, channels, advertising, and selling. In this sense, marketing forces are viewed by the new venture as shaping the total organization and all the business functions (Drejer 92). Political changes do not have a great impact on this business. A special attention should be paid to economic processes (gas and oil prices) and demographic changes. Changing environments create market opportunities for the delivery company that must be reflected in adaptive corporate action. Resources cannot merely be directed to the cultivation of old markets if competitive positions are to be enhanced (Schien 77). Core Competencies For the new delivery company, core competencies are clear distinctive brand proposition and low cost, exceptional service quality and effective solutions for customers. Strategy theory based on core competencies-or technology, since these two words are not clearly defined as mutually exclusive conceptions-has become an alternative approach to strategy making. The new business deliberately plans a competitive strategy based on excessive inventory levels and long customer lead times (Pittengrew et al 71). Thus, there are some deficiencies in the organizational systems that can be solved only through a process of systems improvement. The applicability of operations strategies mentioned above is obviously greater in processes producing high volumes. The ideas for waste reduction used in conjunction with these systems are generally applicable: setup time reduction, better quality control,