Page 1
IBM’s Changed Strategy
IBM (International Business & Machines) is famous for transforming from survival to successful company, changed its overall business strategy due to intense global challenges and competition. The company started as a Hardware Production Company in the early 1900s then transformed to a Service company in late 1900s. Now, IBM has become a Software Developing Company after vast transformations and changes in strategies. IBM faced the diverse range of challenges including demands of globalization, innovation, and growth that encouraged IBM to revise the business strategies. However, this change was formal planning process based on three global key strategic changes. These strategic changes are changing global trends (macro analysis), values & strategies and the last one is government and performance management. IBM transformed the whole organizational products, services, and values as per the global trends and needs (Samuelson, 22).
Telecommunication Wireless Business Industry
Telecommunication industry has been dominated and competitive in the last two decades of the history. Mainly, the wireless business in telecommunication has sustained more competition in the industry. However, in today’s competitive business environment telecommunication industry is also confronting ample of challenges and competition. There is strong competitive pressure within the industry and outside the industry. Furthermore, major trending factors influencing the telecom industry are intense competition, emerging technology, customers, and employees. Moreover, the competition in the telecom industry has always been based upon on two factors that are expanding into new markets and struggling intensely to gain the market share (Hwang, Taesoo, and Euiho, 184).
Page 2
Apple’s Strategic Competitive Advantage
Apple is well-known for innovation in technology; the business strategy of Apple controls the uniqueness of its products and services. Apple facilitates customers with the distinctive operating system, unique application software and stylish & aesthetics designs with convenience to use. Because of extraordinary services and products to customers in electronic industry; Apple has built strong market positioning in the mind of the customers. Apple’s competitive strategies are product differentiation and premium pricing (cost) strategy on the broader perspective. However, remaining competitive advantages include:
Brand
Loyal customers
Unique designs
Products & services simplicity
Cost Effective
Lock – In
Vertical Integration
Furthermore, the sources behind gaining these competitive advantages are highly-integrated product range, innovative internal - organizational structure and in the last the effective supply chain management. Every product and service of Apple is unique and provides a complete ecosystem of consumer electronics on a single platform (device). Further, wide network and operations of supply chain management at Apple are unique itself. Lastly, the innovative and ideas sharing the organizational culture of Apple is a core competitive advantage (Ireland and Justin, 52).
McDonald’s Excellence in Supply Chain and Distribution Management
As stated by Labert and Matha (66), McDonald’s has chosen as a company of excellence due to a large number of customers, huge market share, presence all around the world, high profit earning, a wide range of product line and strong value chain. Among other core competencies, McDonald’s has achieved excellence through the advance network and system of supply chain management. Since beginning McDonald's remained to stick with strong supply chain and distribution network and built it as a core competency. Mainly, the supply chain network of McDonald’s consists of suppliers, company, and franchisees.
Along this, McDonald’s has built a strong cold chain network in order to maintain integrity foodstuff or product and also to sustain nutritional value and freshness of the food items. Furthermore, the cold chain has proper system of supply chain beginning from procurement, warehousing, transportation and lastly retail food products to different franchisees. Additionally, in building more excellence/value McDonald’s has introduced electronic procurement system in supply chain management. This vital element makes the service faster and convenient for customers. Furthermore, logistics, transportation, and distribution (franchising, joint ventures & licensing) functions play an essential role in effective supply chain management of McDonald’s.
Page 3
Technological Paradigm Shift in Cellular Industry
Since last few years, the cellular industry has undergone a technological paradigm shift. Recently, in the last two decades, cell phones have become an essential part of human life. The process began from the heavy mobile phones to the slim touchscreen smartphones feasible to keep in pockets. According to experts, cellular technological is shifting from hardware to software-centric with infinite functionalities. Additionally, incorporating the applications and features of a personal computer, mobile phones have rapidly grown and expected to continue to grow in future as well.
Further, the shift took place in ease of mobility, portability, stylish and unique designs, unlike the first mobile phones of Motorola. Moreover, in the beginning, cell phones were only used for texting and calling but now they have become more computing power. Now, smartphones have become small computers, along with the capability of making video and audio calls. Another shift is the introduction of the entertainment industry, instant news streaming, television programs and use of the internet. However, these shifts put the established companies at risk and confronted vast losses such as Nokia, Motorola and Sony Ericson etc. (Andrews, 136).
Unilever as the Transnational Company
Unilever is one of the largest consumer products company and has two headquarters, one in the United Kingdom and another in Netherland, Europe. In the beginning, Unilever was a multi-domestic firm but later on it adopted the transnational strategy. Due to increase higher cost pressures from the market, because of increased competition in low-cost detergents. Unilever took initiatives to rationalize the detergent business. Furthermore, Unilever combined the operations on a regional basis to lower the cost of detergents, build new plants, improved and standardized the packaging and same advertising used on a regional basis. These initiatives reduced the annual cost and also minimized the increased competition from local products (Snow, 50).
Page 4
Failure of WorldCom Acquisition with Sprint
Microsoft Acquired Nokia
Microsoft is a software developing corporation while Nokia was a mobile phone manufacturing company. Microsoft acquired Nokia in April 2011, but it was a quite failure for Microsoft (Ali-Yrkko, 10). As already, Nokia lost market share due to increase competition from Apple, Samsung, LG, Sony and other smartphones. Microsoft confronted with $7.2 billion losses and now in the processing of closing operations and facilities from different countries. Additionally, both the companies had different cultures, tools, resources and trade secrets that created inefficiencies between both the companies. Whereas, Microsoft still believes on how the hardware and software work together and devising strategies to promote positive relations with the existing partners in future.
Bibliography
Ali-Yrkkö, Jyrki, et al. "Microsoft Acquires Nokia: Implications for the Two Companies and Finland." ETLA Brief 16.3 (2013). Print
Andrews, Jeffrey. Seven ways that HetNets are a cellular paradigm shift. IEEE Communications Magazine 51.3 (2013): 136-144. Web. 18 July. 2016.
Hwang, Hyunseok, Taesoo Jung, and Euiho Suh. "An LTV model and customer segmentation based on customer value: a case study on the wireless telecommunication industry." Expert systems with applications 26.2 (2004): 181-188.
Ireland, Duane, and Webb, Justin. Strategic entrepreneurship: Creating competitive advantage through streams of innovation. Business Horizons 50.1 (2007): 49-59. Print.
Lambert, Douglas M., and Cooper, Martha. Issues in supply chain management. Industrial marketing management 29.1 (2000): 65-83. Web. 18 July. 2016.
Sidak, J. Gregory. "Failure of good Intentions: The WorldCom Fraud and the Collapse of American Telecommunications after Deregulation, The." Yale J. on Reg. 20 (2003): 207.
Snow, Charles C., et al. Use transnational teams to globalize your company. Organizational dynamics 24.4 (1996): 50-67. Print.
