Share
Explore BrainMass

Resources

1. Under stable conditions, concentrated growth poses lower risk than any other grand strategy (Pearce & Robinson p. 190 *). Explain why this is the case.

2. How do you think Online Universities has created today's competitive advantage? Why are those things effective? What must Online Universities do to sustain a competitive advantage?

3. Fifteen principal grand strategies are listed on Pearce & Robinson pp. 187-8 *. Is it possible for a single- business firm to use two or more at the same time? If yes, give an example. If no, why not?

4. Procter & Gamble's laundry detergent business is in Quadrant IV of the Model of Grand Strategy Clusters (Pearce & Robinson Exh. 8.11 *). Provide an original example of concentric diversification and joint venture for that business. Is there a grand strategy, not listed in Quadrant IV, which would also be appropriate? Explain.

*Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin (Pearce & Robinson 2011).

Solution Preview

1. â??Under stable conditions, concentrated growth poses lower risk than any other grand strategyâ? (Pearce & Robinson p. 190 *). Explain why this is the case.

Concentrated growth poses lower risk for the reason that the current market trends are not rapidly changing at the moment, instead management will be able to take a little more time with strengthening and repositioning new products and services to improve efficiency before product implementation. When conditions are stable, the marketplace is perceived as being steady and fixed, therefore, there are minimal competitive threats the organization has to worry about, or if there is immediate competition, then chances are external competitive forces are substandard, whereas, a higher risk is only applicable as a result of an ever changing market in which case a specific industry is saturated, i.e. every organization is continuously trying to "one-up" the competition with the latest products or services within the same industry (e.g. Telecommunications: Cellular phones, and/or wireless services.). "Concentrated growth strategies lead to enhanced performance. The ability to assess market needs, knowledge of buyer behavior, customer price sensitivity, and effectiveness of promotion are characteristics of a concentrated growth strategies. A major misconception about the concentrated growth strategy is that the firm practicing it will settle for little or no growth. A firm employing concentrated growth grows by building on its competencies and achieves a competitive edge by concentrating in the product-market segment it knows best (Wang, n.d.)."

2. How do you think Online Universities has created todayâ??s competitive advantage? Why are those things effective? What must Online Universities do to sustain a competitive advantage?

Online universities created a competitive advantage by fashioning their online business model to adjust to technological advancements and to enable students to engage in an educational online community. These universities provide students with a ...

$2.19