Introduction
CACI Inc has been in operation since 1962, and has grown over the years to the powerful market presence that it has today. This growth can be attributed partly to the development of well informed strategies and their implementation to the letter. The ability of the company to makes changes as appropriate to counter changes in the environment has also been central to the company’s continued growth and success over the last half century it has been in operation. This paper seeks to use the information from the environmental analysis to develop a strategy for the company which can be employed successfully by the company in the future.
Best Value Discipline
Operational Excellence
CACI Inc, through the use of its well established human capital, should seek to develop operational excellence. This can be done by using the experience and skills available to the company to ensure that it develops products which stand out from the competitor’s. The company has over the last few years made acquisitions of smaller companies as part of its growth strategy. This means that the human resources and skills available to the company are vast and if utilised well can result in operational excellence. Since operational excellence is based on the precepts of using teamwork for problem solving and leadership results in the organization, the company should develop several strategies to achieve these goals (Mckeown 2012).
Customer feedback should be improved. This will ensure that the company has a fine grasp of the needs of its customers and will work towards continually improving the experience of the customers. The strategy for the achievement of this will be through the development of a structured policy regarding the obtaining of feedback from the customers, its review and policy changes to meet their demands. This can be done through strengthening the policy framework of the current customer care division (Mckeown 2012).
The company operates over a large geographical area. To achieve sync in the delivery of quality service, the company should develop customer care division in its headquarters and use it to make liaisons with regional offices regarding customer feedback so as to ensure that the concerns and needs of all customers are dealt with in the most professional manner (Mckeown 2012).
Product Leadership
CACI Inc operates in a very competitive industry in which new products and solutions are being developed very fast. The technology industry is one of the most dynamic, and the company needs a strategy to ensure that it keeps up with the developments in the industry. The only way to achieve this is to ensure that within its human capital are individuals capable of making inventions which are meaningful to the company. Since the company majorly deals with provision of technology services to the military and intelligence arms of the government, the company should ensure that in its strategy, technology is effectively employed towards successfully dealing with the needs of these sectors against a backdrop of changing situations. CACI Inc should employ both specialists from the defence and intelligence sectors so that they supply the company with the information regarding the needs that need to be met by the services that the company offers. The result will be the development of a product leadership in the industry by CACI Inc (Allison & Kaye 2005).
Customer Intimacy
Generic Strategies
Product Differentiation
CACI Inc has majorly sought to satisfy the needs of the public service; mainly by focusing on the provision of services to the Military and intelligence services arms of the government. However, its reach into civilian market has not been very successful and its focus on this segment of the market has not been well established. With a reduction in military spending by most governments, diversifying into the civilian market to avoid the adverse effects which may result from increasing budget cuts (Allison & Kaye 2005).
The company’s strategy therefore needs to focus on both government and civilian markets. It should differentiate its services to ensure that it also provides security technology services to the civilian markets. This may involve provision of security services to high risk institutions such as banks and high security buildings.
Cost Leadership
Technology is a dynamic industry with many able and competitive players. CACI Inc, to remain a market leader in the industry must maintain the cost leadership that it has enjoyed over the last decade. However, environmental factors such as the emergence of new and ambitious companies in the industry put this to a risk. New regulations in the political scene may also cause erosion to the goodwill that the company enjoys with the government.
One of the ways of dealing with this is the development of a cost leadership strategy. This ensures that the technology solutions that CACI Inc offers will be of the lowest cost compared with competitors. The company’s cost of production should be minimised as much as possible as a way of recovering revenues lost to budget cuts by the company’s major customers.
Diversification
The environmental analysis revealed that CACI Inc has focused it services in North America and Western Europe. This is despite the emergence of new markets in South America and Asia. To make use of the growing markets, the company need to employ a strategy of diversification into emerging markets (Olsen 2012).
Most of the developing and middle income countries face major challenges in terms of security. A perfect example is Mexico which suffers from the challenge of controlling drug cartels which operate from various parts of the country. These countries are a perfect opportunity for the company to venture into new markets. With its track record, the company can easily use technology to develop security solutions to suit the needs of these countries in the fight against crime and in matters of national security and intelligence. With such a diversification into new markets, CACI Inc will be able to grow its revenues and effectively counter any loss of revenue that may be occasioned by budget cuts and loss of old customers (Olsen 2012).
Grand strategy
The greatest threat facing CACI Inc is the reduction in revenue due to various reasons occasioned by changes in the environment. The grand strategy that CACI Inc will employ should have its main focus as the growth of revenues to ensure that the effects of reduced business from established customers does not result in the financial crippling of the company. The best way to achieve this would be diversification into new markets. With its established reputation, the company can make initial forays into through these new markets by making acquisitions of smaller companies operating in those countries and then making them into launching pads into these new markets.
The company needs to develop new relationships with governments in low and middle income countries so that it can market its products to these new markets. Such relationships would enable the company to develop comprehensive and cost effective solutions to suit the needs of such markets. It is important to note that while the United States and western European nations are making budget cuts in their military and intelligence spending, many middle income countries are doing the opposite and increasing such spending. It would therefore be a wise decision to increase the presence of the company in those nations.
Further, the company should employ its skilled human resources to establish itself in new markets. With the experience from serving high end clients, the company does possess the ability to deal with the needs of such smaller and less complicated markets.
Conclusion
CACI Inc strategy focuses on several issues; making efforts to avoid losing revenue due to shrinking markets, diversifying into new markets and developing cost leadership in the industry. If the company follows such strategies, it will emerge stronger in terms of growth and profitability in the both in the short run and the long run.
References
Olsen, E. (2012). Strategic Planning Kit for Dummies, 2nd Ed. New York, NY: John Wiley & Sons, Inc.
Allison, M & Kaye, J. (2005). Strategic Planning for Nonprofit Organizations. 2nd Ed. New York: John Wiley and Sons.
Mckeown, M. (2012). The Strategy Book, New York: FT Prentice Hall.
CACI Inc Website. Retrieved March 24, 2013 from http://www.caci.com/about/profile.shtml
