Haiti’s Ministry of Tourism
- Competitive/ Business Strategy – Haiti’s Ministry of Tourism
After the devastating earthquake that hit Haiti, the country is currently embroiled in efforts to rebuild its economy. The development of tourism is a top priority for the incumbent government.
- Haiti Competitive Strategy
- Cost advantage
- Differentiation advantage (Hong, 2008).
- Competitive strategy alternative
In the future, Haiti can explore the following competitive strategies alternatives.
- In order to gain cost advantage in the future, Haiti needs to consider the following competitive strategy alternatives:
- Economies of scale
- Economies of learning
- Economies of scope and scale
- Market share
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- In order to gain differentiation advantage in the future, Haiti needs to consider the following competitive strategy alternatives:
- Marketing
- Branding
- Vertical integration
- Complimentary services
- Future competitive strategies
The ministry of tourism in Haiti has an open future ahead. However, its prosperity is dependent on the strategies that they employ. I recommend the following strategies:
- Innovation: As intimated earlier, Haiti has a rich culture that can be exploited commercially through innovation. Through innovation, both the government and the private sector can develop cultural industries that showcase the rich culture in the country to the tourists.
- Branding: Just like commercial products, countries can be branded depending on what they have to offer. Haiti needs to brand its tourism sector in order to let the world know what is on offer (Kozak & Andreu, 2013).
- Competitive/ Business Strategy – Baidu
- Baidu Competitive Strategy
The current competitive strategy for Baidu is creating a captive audience. This is in a bid to maintain its market share in search engines, especially in the face of increasing competitors.
- Cost advantage
- Differentiation advantage
- Future competitive strategy alternatives
In order to gain cost advantage, Baidu needs to consider the following competitive strategy alternatives:
- Product design
- Utilization of the capacity for expansion
- Cost management
In order to gain differentiation advantage, Baidu needs to consider the following competitive strategy alternatives:
- Technological leadership
- Employee skills and knowledge
- Future Strategies
Baidu has a number of future strategy alternatives at its disposal that can help the company gain increased cost advantage.
- Employee recruitment: In order to perform at the highest level, Baidu needs a highly skilled workforce (Hitt, Ireland & Hoskisson, 2009). This strategy has worked very well for its rival, Google. A highly skilled workforce will enhance efficiency and productivity in the company.
- Advertising methodologies: 60% of Chinese have not gone online yet. Although the company posts impressive figures in terms of market share of engine searches, search traffic and mobile browsing, the company can increasing its advertising in order to penetrate the market. This will ensure that Google does not increase its market share in China at the expense of Baidu.
- Corporate/ Directional Strategy
- Corporate/Directional Strategy at Blockbuster
- Intensive strategies
The corporate level strategy adopted by Blockbuster is highly related. This involves sharing the resources belong to the company’s marketing department with all their product lines. This is because video games and movie rentals are increasingly related in the manner by which they are supplied, packaged, displayed and transported. This operational synergy is not only existent in the market department but also in the research and development department. Additionally, the company has a ‘total access plan’ that enables the company to reach those customers who are situated in geographical locations where retailers are too far.
- Diversification strategies
Blockbuster is exploring concentric diversification by still operating in the movie and videogame rental business. The company acquired another online company dealing with the download of movies and video games.
- Future Corporate Strategy Alternatives
- Intensive strategies
- Market development: this is through venturing into other markets, for instance distribution of movies.
- Market Penetration: this is through advertisements and delivery services in order to reach more customers.
- Alternative pricing: this is a strategy where the company offers its products at a slightly lower price that its competitor. In addition to this, Blockbuster should ensure a wide selection of movies and video games. This will help the company achieve differentiation.
- Diversification strategies
- Acquisition of more businesses
- Strategic partnerships
- Future Corporate Strategies
Blockbuster was embroiled in debts. As a future corporate strategy, I recommend that the company manages any acquisitions it makes so that debts do not recur due to successive acquisitions.
- Corporate/ Directional Strategy
- Corporate/Directional Strategy at CEMEX
CEMEX became the third largest cement company in the world by using the blue ocean strategy. This is the same strategy that Boston Beer Company used to become the largest craft brewery owned by the United States of America. However, CEMEX has adopted other corporate strategies to help the company edge forward. Traditionally, the company acquired small cement factories. However, this is not enough for the ambition by the company.
- Intensive strategies
One of the intensive strategies that CEMEX is exploring currently is market penetration. This is an attempt by the company to gain more market share for the products that it currently markets. However, instead of concentrating purely on marketing and advertising, the company is currently involved in takeovers and acquisitions. Additionally, the company is exploring market development as an intensive strategy. After acquiring a cement factory, the company, in addition to the brands manufactured by the acquired factory, introduces and markets its own products in the new market.
- Integration strategies
The integration strategies employed by CEMEX currently include vertical and horizontal integration. However, horizontal integration is the more prominent strategy for CEMEX.
- Future Corporate Strategy Alternatives
CEMEX can consider the following intensive and diversification strategies for the future:
- Intensive strategies
- Branding its products in the retail market.
- Strategic alliance with major cement factories
- Diversification strategies
- Diversify revenue streams by marketing other products
- Global expansion through the Asian market.
- Future Strategy
For a while, CEMEX has been exploring the growth by acquisition strategy. The company has been acquiring local cement firms in order to consolidate its business. However, with a view of its economic future, I would recommend that the company acquires a major cement company, more so in the Asian market. This will ensure the company has a global presence and also curtail the expansion of Asian companies.
- Global Strategies and Alliances
The issues that TNK-BP is experiencing currently are a true reflection of the importance of global alliances and international business strategies. Up until 22013, the company was vertically integrated oil company operating in Russia. However, the company was acquired by another Russian oil producing company, Rosneft in 2013. The company was paid 16.65 billion dollars in cash and an additional 12.84% of the shares held by Rosneft. In the context of international business strategies, TNK-BP sold part of its stock and invested in another company.
This effectively diversified the income streams of TNK-BP. Of course there are other implications of this acquisition. For instance, as the new majority shareholders, Rosneft took some measures to manage its acquisition. This involved the appointment of its vice-president as the Chief Executive Officer of TNK-BP. The implication is that TNK-BP does not have control in the operational management of the company. Nonetheless, the company achieved liquidity that can be invested in other sectors of the economy, or to acquire other companies (Gaughan, 2011).
- Acquisition Strategies
Growth by acquisition is a business strategy that has its benefits and challenges.
Benefits
One of the benefits of acquisitions is that is a very fast way of expanding business interests in new markets. Additionally, the company is able to operate in a new culture in case it retains the employees. There is also minimal financial risk involved in acquisitions. This is because one studies the trends of the company before the acquisition. For instance, CEMEX has acquired numerous local cement factories. The common thing with these factories is that they have established operations and a significant market share (Ross, Weill & Robertson, 2006).
Challenges
There may be a recurrence of debt problems in cases where acquisitions are made successively. Another challenge is the potential for a clash on corporate culture. This is especially the case when the company that is acquired is based in a different country. For instance, if CEMEX were to acquire a cement company in the Asian market, there is potential for clash in the corporate cultures.
Managing Acquisitions
Managing acquisitions successfully is a very tricky venture. However, it can be done by taking certain aspects into consideration. After acquiring a company, one can either leverage the mature foundation by ripping out the existing processes and installing the processes of the mother company. This is called the replication of unification process. Alternatively, one can acquire another for the purposes and intents of market synergy. Under these circumstances, one does not standardize or integrate the new business. Instead, the acquiring company allows the acquired company to a move independently of the mother company’s operations in a diversification operation model. Good examples of how acquisitions can be managed successfully are CEMEX, through the use of its rip and replace approach in the management of acquisitions.
References
Gaughan, P. A. (2011). Mergers, acquisitions, and corporate restructurings. Hoboken, NJ: Wiley.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic management: Competitiveness and globalization : concepts & cases. Mason, OH: South-Western.
Hong, S. W.-C. (2008). Competitiveness in the tourism sector: A comprehensive approach from economic and management points. Heidelberg: Springer.
Kozak, M., Andreu, L. (2013). Progress in Tourism Marketing. New York. Routledge.
Ross, J. W., Weill, P., & Robertson, D. (2006). Enterprise architecture as strategy: Creating a foundation for business execution. Boston. Harvard Business School Press.
