A brief explanation and concepts of strategic management.
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Integrating strategy requires acknowledgement of environmental forces. Companies such as Netflix made several attempts to implement a strategy; consequently, an inadequate assessment of the environment did not prepare them for the loss of revenue as a result of negative consumer feedback. There are approximately five components of strategic management leaders should utilize prior to moving forward.
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Solution Summary
To effectively integrate a strategy, leaders must take inventory of competitive business practices to identify the most effective processes in which consumers are receptive. Some organizations neglect to evaluate the market because leaders automatically assume they know what's best for consumers. Blatant disregard of consumer needs is a mistake of most organizations.
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Strategic management is a mechanism of a comprehensive assessment. Leaders are compelled to observe every possible disruptive subtraction of value significant or otherwise. Strategic management hinges on the brink of control and market classification. Leaders must determine a differentiated specialty before the implementation of a strategy. In most cases, leaders differentiate the organizations strengths and weaknesses and concentrate on further strengthening their strongest position. It is my belief that strategic management should focus on strengthening their weakest area to alleviate all forms of weaknesses to ensure the organization is a well-rounded organization of high quality standards, which creates an even stronger competitor than the competition.
Take Netflix, for example, in 2012, the company struggled to maintain relationships with companies such as Starz, Sony pictures, and a few other organizations responsible for contributing to Netflix's movie library. As a result, movies were automatically removed from the streaming library. In a conversation with an anonymous Netflix representative who states, "Netflix's license and contract issues with former production companies will in no way interfere with the companies quality of service." After a year or so later, the company decided to initiate their own entertainment ventures by producing original series such as; House of Cards, Orange is the New Black, to name a few, to contribute to their library in addition to current movie and television titles.
Strategic management is the tool that causes organizations to compensate for whatever is lacking in the current business model. Netflix is a prime example of strategic management. Another example is Netflix's price increasing approach. The company stated in a ...
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