Technology–Based Strategies

Unit 4
Strategy

Strategy, is a high-level plan to achieve one or more goals under conditions

of uncertainty.

1. Strategy is important because the resources available to achieve these

goals are usually limited.
2. Strategy generally involves setting goals, determining actions to achieve
the goals, and mobilizing resources to execute the actions.
3. A strategy describes how the ends (goals) will be achieved by the means
(resources).
4. Strategy can be intended or can emerge as a pattern of activity as the
organization adapts to its environment or competes.
5. It involves activities such as strategic planning and strategic thinking.
Components of Strategy

Professor Richard P. Rumelt described strategy as a type of problem

solving in 2011. He wrote that good strategy has an underlying
structure he called a kernel. The kernel has three parts:

1) A diagnosis that defines or explains the nature of the challenge;

2) A guiding policy for dealing with the challenge; and
3) Coherent actions designed to carry out the guiding policy.
President Kennedy illustrated these three elements of strategy in his Cuban
Missile Crisis Address to the Nation of 22 October 1962:
• Diagnosis: "This Government, as promised, has maintained the closest
surveillance of the Soviet military buildup on the island of Cuba. Within the
past week, unmistakable evidence has established the fact that a series of
offensive missile sites are now in preparation on that imprisoned island.
The purpose of these bases can be none other than to provide a nuclear
strike capability against the Western Hemisphere."
• Guiding Policy: "Our firm objective, therefore, must be to prevent the use
of these missiles against this or any other country, and to secure their
withdrawal or elimination from the Western Hemisphere."
• Action Plans: First among seven numbered steps was the following: "To
halt this offensive buildup a strict quarantine on all offensive military
equipment under shipment to Cuba is being initiated. All ships of any kind
bound for Cuba from whatever nation or port will, if found to contain
cargoes of offensive weapons, be turned back."
Formulating and Implementing strategy
Strategy typically involves two major processes:

Formulation involves analyzing the environment or situation, making a

diagnosis, and developing guiding policies. It includes such activities
as strategic planning and strategic thinking.

Implementation refers to the action plans taken to achieve the goals

established by the guiding policy.
Management theory: Strategy- 5 P’s
• Strategy as plan – a directed course of action to achieve an intended set of
goals; like the strategic planning concept.
• Strategy as pattern – a consistent pattern of past behavior, with a
strategy realized over time rather than planned or intended. Where the
realized pattern was different from the intent, he referred to the strategy
as emergent.
• Strategy as position – locating brands, products, or companies within the
market, based on the conceptual framework of consumers or other
stakeholders; a strategy determined primarily by factors outside the firm.
• Strategy as ploy – a specific maneuver intended to outwit a competitor.
• Strategy as perspective – executing strategy based on a "theory of the
business" or natural extension of the mindset or ideological perspective of
the organization.
SWOT Analysis
(strengths, weaknesses, opportunities, and threats) analysis.

SWOT analysis for Airline business

• Strengths—A consistent marketing message about no charges for checked

luggage and a standardized in-flight experience.
• Weaknesses—An aging fleet that was falling behind on technology.
• Opportunities—Allow people to bring their own devices (no programming
overhead), and possibly modernize the fleet with new seats that allow for
more people on the same planes.
• Threats—Competitors have copied the low-cost marketing message but
added last-minute, hidden costs and confused the market.
Technology–Based Strategies
As a businessperson, you are probably already
technology-savvy at some level. However, because
technology changes so often, you may not be
aware of some new technologies that can help to
supercharge your business, regardless of its size.
Adopting technology is probably one of the fastest
ways to drive advantage in your favor.
Strategy 1: Use the internet to help finance your
business
With the JOBS Act of 2012 and the development
of crowd funding, you can sell small amounts of
equity to many investors with fewer restrictions
than under previous security laws. While the JOBS
Act is waiting implementation, you can also look at
hybrid models such as Mosaic Inc., that work
within existing security law to enable the public to
invest in clean energy projects.
Strategy 2: Embrace social media and expand your
sales
Enhance your company’s visibility by adapting
effective social media strategy using Facebook,
Twitter and LinkedIn. You can interact with
audience directly and drive traffic to your website.
Print media is taking a step back as internet-based
advertising replaces it. Find out the platform and
communities where your customers spend the
most time and create a strategy to engage with
them with compelling and useful content to keep
them engaged with you.
Strategy 3: Adopt new technologies to streamline your business
Most businesses have software for accounting, user-friendly
websites, online catalogs and call centers. Some may have even
streamlined inventory management systems in place. The
following are some additional technologies which can be
adopted by small businesses:
1. Real-time, on-demand video for marketing and product
promotion
2. Online Customer Relationship Management (CRM) and
customer care to re-personalize customer experiences
3. Subscription-based software as a service (SaaS) which
minimized upfront investment by giving services similar to the
idea of “pay by the drink.”
Strategy 4: Take your business into the cloud
The “cloud” is one the most significant paradigm
shifts for companies. The cloud offers cheap
storage and availability of information from
multiple devices.
Strategy 5: Create a mobile app
People are using smartphones to browse more
than any other device. Applications are not just
about downloading music or finding directions on
a map. Creating an engaging application is much
higher in value than an advertisement or an email.
You can think of sending special offers, coupons or
news that can be of use to them.
Thanks