Discuss about the Strategic Management for Long-Term Growth.
The industry has numerous driving forces where B1 is competing in that every individual would be influenced. The driving forces situated on the product and innovation in market, modifications in long-term industrial growth, changes in efficiency and cost along with modifications in the individuals purchasing the cameras and way of using the same. All the above driving forces would have an influence, since they could either raise or decline the market demands. After the review of these numbers, it could be seen that such driving forces would increase the overall intensity of competition (Hill, Jones & Schilling, 2014). B1 has experienced a fall in market share, which has resulted in decline in profit levels.
The two actions, which B1 needs to consider for fighting with the adverse effects, are lowering its selling price to be 20% beyond cost along with increasing advertising in all areas. For instance, in Appendix A, the strategic group map depicts the position of each organisation in the market for entry-level cameras. The most attractive organisations in the map include Click Camera Company and Envision. The two organisations having weak positions in the market include B1 and Da Best Cameras. The organisations attempting to move to a different position on the map of strategic map include Da Best Cameras, Fantastic and B1. This map in Appendix B would depict the position of each organisation in the market in the context of multi-featured cameras. The positioning of all the organisations is identical like in the entry-level cameras.
The three main factors to become successful in the digital camera sector include enhanced advertisement in all places, particularly in North America, to attract higher consumers provide quality cameras at each level for a cheaper price along with diversifying distribution outlets to raise the market share (Wheelen & Hunger, 2017). Few hard instances denote that the strategy of B1 has been effective and the revenue estimation in the seventh year has been $376,380. In addition, it has been increased to $422,526 and in the seventh year, earnings per share have been $1.36; however, the estimated number has been $2.18. In addition, the net income in year 7 has been $27,145, although the expected number has been $43,516. Furthermore, the return on equity in year 7 has been 21.2%, while the estimated number has been 27.1%.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.