High competition among businesses and organizations across the globe is a common feature in the contemporary corporate world. As a result of this, businesses, and organizations must formulate appropriate strategies to realize growth in the market. On the other hand, the number of pathways to realize growth in the market has increased. Note that this depends on the internal as well as external environment of the business or organization in question. With this in mind, August Karaoke Box must consider various alternatives to realize growth in its industry of operation. This essay will analyze value discipline, generic strategy as well as grand strategy for August Karaoke Box.
First, Pearce and Robinson (2011) reiterate that strategies must center on delivering superior customer value through one of three value disciplines: operational excellence, customer intimacy, or product leadership (p. 185). In fact, these values defined the organizational culture. As a result, they nurtured growth among businesses and organizations. In line with this, two values disciplines among the three are critical or rather contribute toward the growth of August Karaoke Box. These are operational excellence and customer intimacy.
To begin with, operational excellence is a specific strategic approach to the production and delivery of products and services by a business or organization in its industry (Pearce & Robinson, 2011, p. 185). In this regard, August Karaoke Box had a responsibility of defining the approach to use in its operations that would guarantee that customers were well satisfied and thus result in the growth of the company. From the analysis on this company, it is evident that company had a growing customer with a projected growth of 50% during the first quarter, 60% in the first year and 70% in the second year of operation. As such, the operational excellence of this company must focus on service delivery that would enhance its ability to retain customers.
According to Martin (1994), operational management entails providing customers with reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience (p. 54). So to speak, most customers of August Karaoke Box were students. As such, this company needs to consider prices that are affordable to these students. Furthermore, maintaining a wide variety of products would also contribute to the growth of the company. Note that the analysis of the company shows that a weaknesses of this company was lack of excellent food services. As a result there was need to improve on foods services in the company because it contributed to the growth of the company.
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Similarly, another value discipline for this company is customer intimacy. In reference to Pearce & Robinson (2011), Companies that implement a strategy of customer intimacy continually tailor and shape products and services to fit an increasingly refined definition of the customer (p. 186). Arguing from this perspective, since August Karaoke Box was a growing company, there was a tendency for this company to receive customers with diverse needs. As a result, constant restructuring of products and services to meet customer needs was necessary. This was done until to the point of attaining a balance.
Various strategies that would contribute to growth in the company have been mentioned. These strategies include cost leadership, differentiation, and focus (Botten, 2009, p. 275). However, two of the most important strategies to August Karaoke Box are overall cost leadership and product differentiation.
To begin with, cost leadership focus on gaining advantages by reducing its economic costs below all of its competitors without necessarily abandoning other business or corporate strategies (Barney, 2007, p. 170). One of greatest advantages or rather strengths of August Karaoke is that this company is located near a learning institution. As a result, most of its customers were students. As such, the company could pursue cost leadership strategy by integrating some students on its workforce, who would work on a part-time basis. Barney (2007) argues that low-cost access to factors of production is an important determinant of firm performance in the global copper industry (p. 181). Note that this approach would provide the company with low-cost labor force while maintaining its quality standards.
Apart from this, it was also important for this company to pursue product differentiation strategy. Note that being a new entrant into an industry that was already saturated, product differentiation was the only approach, which would establish this company in the industry when used effectively. Barney (2007) affirms that product differentiation is a business strategy whereby firms attempt to gain a competitive advantage by increasing the willingness of customers to pay for products or services (p. 200). This requires August Karaoke Box to emerge with unique products as well as presentation ways of these products to the customers.
Looking at the generic strategies as well as value disciplines, it is important to mention that concentrated growth would be the grand strategy of August Karaoke Box. In reference to Pearce & Robinson (2011), thoroughly developing and exploiting its expertise in a narrowly defined competitive arena, the company achieves superiority over competitors that try to master a greater number of product and market combinations (p. 188). As such, pursuing concentrated growth would create an avenue to August Karaoke Box to master the market and gain superiority over its competitors in the market.
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With this in mind, August Karaoke Box would need to pursue concentrated growth as its grand strategy as well as product differentiation. Important, concentrated growth strategy would give this company an opportunity to lay down structures that would allow it to focus ways of fostering growth in the market. In addition, product differentiation would create an avenue for the company to dominate the market with its unique products as well as fostered innovation. As a result, the company would be able to emerge as a market leader in its line of industry.