Question

Key terms: Strategic Alliances, Build-Borrow-or-buy Framework, Cost Leadership, Focus Cost Leadership, Blue-Ocean Strategy

Your business is a tech company that sells new tech to 3 markets: U.S., Europe and Asia. Using the 5 key terms above explain in detail how you would apply these concepts in your business strategy? And how can you use these concepts in developing a strategy in your future workplaces?

Answer 1

Our company sells new technologies to the markets of U.S, Europe and Asia. Our business strategy is to expand our business to the overseas market with the reasonable prices with good quality of output to the other countries.

Strategic alliance is a contract between the two or more companies or countries for sharing their resources to achieve their intended goal. While sharing the tech between the countries our company had made an agreement with the other countries for sharing the tech in their markets for achieving the goals. Build-Borrow or Buy framework was one of the best strategies for the growth because it clearly defines that build on our present resources which will be available internally, borrow the resources from the other companies through the agreement and buy other firms. While listening about this strategy it would be easy but during the time of employing it will be harder. Cost leadership is used by many of the business which will help to create the low cost of operations within the company limit. Our company strategy is to reduce the cost by maintaining the quality so that cost leadership will be helpful. Focus cost leadership is mainly based on the competition regarding the price and target the narrow market. This strategy will be helpful while competing with the narrow markets regarding the prices. Blue ocean strategy is defined as the company that which target the market where there was no competition or very less competitors. This can be applies market where there was business operations will not be carried out. I will utilize this strategy and employ when our company come across no competitor in the overseas market.

I will use these strategies for developing the future strategy according to the position of the market because we can see that position of the market was changing day by day. If the market was demanding to share the resources according to the agreement our company would use strategic alliance. If our company needs growth that it was important to use Build- Borrow or Buy framework. If our company wants to operate in low cost then cost leadership will be used. While our company targeting the narrow market it was important to use the focus cost leadership strategy. When there was no competitors for our company in the market our company will develop the strategy by using the blue ocean.