Strategy and Technology
Unlike Microsoft, the small company does not suffer the plight of having to offer out-of-date technology, and therefore, cannibalization would not affect the company. The new disruptive technology of a more stable and faster Operating System is the core business of the new company and they worry less about the customer base and any supply chain relationships with distributors, suppliers or even partners. To grow the product’s S curve and create sustainable market share the small company has to cope with constrained capital and should instigate proper organizational management. The biggest problem for the small company would be to manage the rapid growth and engineer ways to grow from a niche market to the larger mass market (Aaker, 2011).
The strategic options available for the small company will depend on factors such as the complementary assets, the barriers to imitation in the specific industry and capable competitors. Depending on the availability or lack thereof of these factors, the small company has two main strategies that it can exploit under such circumstances to unsettle the giant, Microsoft. The small company may weigh the option of collaborating with Microsoft in order to take advantage of their resources (Hitt et al., 2012). Alternatively, the small company can decide to go into it alone to reap the full benefits out of their Operating System. In going in alone, the company should bundle captivating deals for consumers. This can be achieved by activating a price leadership strategy, focusing on a niche market or develop new and better distribution channels in order to beat the pioneering company in service delivery (Sandelands, 2013).
References
Aaker, D.A., 2011. Strategic Market Management,
Hitt, M.A. et al., 2012. Strategic Management,
Sandelands, E., 2013. Strategic logistics management. International Journal of Physical Distribution & Logistics Management, 27(2), pp.73–142.
