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Strategic Development Options for SS

Spark Space must carefully evaluate any strategic options to ensure they align with its strengths and resources. Failing to do so could leave it vulnerable by pursuing strategies it cannot support. It also risks weaknesses like lack of product differentiation exposing it to threats from competitors as clients have more choices. The document outlines four strategic alternatives - market penetration, product development, market development, and diversification. Each requires evaluation of feasibility and fit before implementation. Key considerations include conducting more customer research to support market penetration, embracing new technologies for product development, thoroughly researching new markets for expansion, and securing needed skills through partnerships for diversification due to associated risks. A thorough analysis is needed to identify the best shortlist of options to pursue.

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4 views3 pages

Strategic Development Options for SS

Spark Space must carefully evaluate any strategic options to ensure they align with its strengths and resources. Failing to do so could leave it vulnerable by pursuing strategies it cannot support. It also risks weaknesses like lack of product differentiation exposing it to threats from competitors as clients have more choices. The document outlines four strategic alternatives - market penetration, product development, market development, and diversification. Each requires evaluation of feasibility and fit before implementation. Key considerations include conducting more customer research to support market penetration, embracing new technologies for product development, thoroughly researching new markets for expansion, and securing needed skills through partnerships for diversification due to associated risks. A thorough analysis is needed to identify the best shortlist of options to pursue.

Uploaded by

hashanthi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Exercise 1

Spark Space must ensure that it matches its strengths to any opportunities
identified when considering future strategic development options. Failure to do so
will leave the business exposed for example by attempting to achieve strategic
option without the resources or competences to fulfill those options.
In addition, failure to address and remove weaknesses may leave the organization
exposed to future threats. This is particularly relevant for SS given that their
products are not sufficiently differentiated from those competitors. Clients have
considerable (and increasing) choice and per the SWOT, are demonstrating little
brand loyalty.
Alternatives available to SS are,

Market [Link] could maintain or increase its share of existing


markets with existing products e.g. by still supplying servers by market for
which continuous to grow.
Product [Link] could develop strategies based on launching new
products/services or by enhancements to existing products /services which
are offered to its existing markets e.g. continuing to innovate with
infrastructure for supercomputers and HPC or blade servers for GPUs.
Market [Link] could develop new markets for existing products e.g.
expanding into neighboring countries or new methods of growth such as
franchising, strategic alliances or by collaborative arrangements e.g.
Memorchip.(NB this would of course involve identifying new markets and
would require more research on new geographic areas or new market
segments.)
[Link] could launch new products into new markets e.g. cloud
computing or hydra modeling. This alternative usually presents the most risky
strategic options.

Each of the above suggestions would need to be evaluated before implementation.


This would entail considering each strategic option in terms of feasibility and fit with
the business.
Key areas with each of these options are:

Market penetration a diminishing market share and lack of differentiation


amongst its products. More detailed information is required on clients, their
buying patterns and future strategic plans. The information could be obtained
via greater emphasis on customer relationship management and/or
harnessing the benefits of big data based on the knowledge gained over
their 15 year history.
Product development in a similar vein to the above,SS need to enhance and
embrace new technology to minimize the risk of eroding customer [Link]

are in a strong position in this context with Spark Innovate (SI) and their
desire to be at the bleeding edge of technological developments.
Market developments this would be a risk for SS without a detailed
understanding of new markets or segments targeted. The risk may be
mitigated to a degree given that SS has several 100% owned subsidiaries
which suggests that SS has grown its business into different products/services
by acquisition and will,therefore,have experience of researching in this
context.
Diversification the risk here lies with the lack of relevant skills, resources
and competences and with diversification per [Link] may need to consider
different expansion options to secure these skills such as acquisition or joint
[Link] will have experience the former but the availability of funding
will need more investigation.

It will be vital therefore that each option be thoroughly evaluated before any action
is taken to develop and implement the strategy.
This will need both financial and non-financial analysis and by the end of this
process, the board will need to decide on a shortlist of options that will be carried
forward to the strategic implementation stage.
Exercise 2
It is important for SS to regularly scan the business external environment which
may present threats or opportunities to its future success in addition to those
presented by the competition. This requires an appraisal to be undertaken by
management for factors relevant to the organizations current and future activities.
To useful frameworks which can assist in this process:
PEST (EL) framework which helps in the analysis of the macro or general
environment in to six main areas:

Political
Economic
Social(and cultural)
Technical/technological
Ecological/environmental
Legal

Porters Five Forces which examines the attractiveness and profitability of industries
by analyzing and understanding the nature of the competitive environment by
examining:

New entrants into a market or industry


Rivalry amongst existing and new competitors
Substitutes for traditional eye wear

Power of customers
Power of suppliers

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