strategy analysis of case 2
ASSESSMENT 2: Decision-making in a business scenario
Introduction
It is an analysis of case 3. Firstly Porter’ Generic Strategies will be used to confirm future strategy. Following this strategy and synergy effects, two criteria will be raised (including raising one framework which could be used to rate synergy effects). After rough screening, five force analysis will be made to test whether this cooperation would enhance any advantages. At last, two possible traps in process will be evaluated.
Case Study Overview
To achieve advantages in competition and increase user base for social media company, strategic alliances is one of the best ways. Generally it could be defined as sharing any kinds of resources with other companies (Vyas 1995). It will be discussed which kinds of partners is suitable for the company which operates a social-networking and micro-blogging website with 100 million registered users.
Overview of decision-making process
The first step is to clarify existing and prospective strategies. It is arranged at beginning because all the researches of potential partners will be based on its own characteristics. To choose strategies, Porter’ Generic Strategies is suitable as a tool. Generally it is a theory about choosing among 4 strategies which are Cost Leadership, Differentiation, Cost Focus and Differentiation Focus to get sustainable competitive advantages (Porter 1969).
Compared with Facebook owning 829 million Daily active users (DAUs) on average (Facebook 2014), this company only has 100 million registered users. It could imply that it is difficult to dilute fixed costs to get economic of scales, which means the cost control could not be an advantage of it. At the same time it should be noticed that the registered users of this company are almost from south-east Asia. Data shows that the active social network users in south-east Asia is 112 million in January 2014(Kemp 2014). It reveals the monopoly position in this area. Considering
Introduction
It is an analysis of case 3. Firstly Porter’ Generic Strategies will be used to confirm future strategy. Following this strategy and synergy effects, two criteria will be raised (including raising one framework which could be used to rate synergy effects). After rough screening, five force analysis will be made to test whether this cooperation would enhance any advantages. At last, two possible traps in process will be evaluated.
Case Study Overview
To achieve advantages in competition and increase user base for social media company, strategic alliances is one of the best ways. Generally it could be defined as sharing any kinds of resources with other companies (Vyas 1995). It will be discussed which kinds of partners is suitable for the company which operates a social-networking and micro-blogging website with 100 million registered users.
Overview of decision-making process
The first step is to clarify existing and prospective strategies. It is arranged at beginning because all the researches of potential partners will be based on its own characteristics. To choose strategies, Porter’ Generic Strategies is suitable as a tool. Generally it is a theory about choosing among 4 strategies which are Cost Leadership, Differentiation, Cost Focus and Differentiation Focus to get sustainable competitive advantages (Porter 1969).
Compared with Facebook owning 829 million Daily active users (DAUs) on average (Facebook 2014), this company only has 100 million registered users. It could imply that it is difficult to dilute fixed costs to get economic of scales, which means the cost control could not be an advantage of it. At the same time it should be noticed that the registered users of this company are almost from south-east Asia. Data shows that the active social network users in south-east Asia is 112 million in January 2014(Kemp 2014). It reveals the monopoly position in this area. Considering