Strategy Plays Important Role Determining †Myassignmenthelp.Com

Question: Discuss About The Strategy Plays An Important Role In Determining? Answer: Introducation Strategy plays an important role in determining the success of a company as it is only with the help of a strategy, can an organization succeed in accomplishing its organizational goals. The strategy of a company is designed in a way that can help a company gain competitive edge over the rival companies and this is exactly the reason why the business strategy of a company is inextricably associated with the organizational goals of the company (Kryscynski 2017). Toyota Company has emerged to be one of the most popular and recognized car companies in the world. The company has kept on adopting embracing effective strategies and hence the company is being selected to understand exactly which strategy has helped the company become the number one company in Japan and the most formidable company in global automobile market by the year of 2003 (Thompson 2015). As it is a well-known fact, Toyota operates in a global market, and the company is not free from competition. In fact, the company faces serious threats from some of the most powerful competitors such as Honda, Hyundai, Nissan and Chevrolet. Hence, the company had to adopt an effective strategy to sustain its position. The company as a result, follows the generic strategy that helps it to survive in the global market. The generic strategy of Toyota is dependent on two important strategies- cost minimization strategy in operation and product differentiation. Since the company produces almost similar cars produced by its competitors, the company is required to provide goods at a lower cost. However, since the same is not possible with high expenses, the company follows an operational cost cutting strategy, as low operational cost is equivalent to low expense. By spending much lesser on the manufacture and operation of cars, Toyota attains competitive edge over the rival companies by se lling its products at much lower cost (Thompson 2015). It is important to note here that Toyota reduces the operational cost of its company by employing the just-in-time (JIT)manufacturing method, which is also otherwise referred to as the Toyota Production System. It is worthwhile to mention here that owing to the system, Toyota is able to minimize waste and inventory cost as well as the response time. Again, at the same time, in order to ensure product differentiation, the company invests heavily in the research and development activities so that it can produce innovative cars that will outrival the cars produced by other companies. Thus, the company focuses on producing unique and attractive products for all market segments. It should be noted that the goal of the organization has been to increase its customer segment so that it can retain the existent customers as well as attract the new customers. However, in order to achieve this end, the company has to produce cars that have unique features, such as cheap price or better quality. Hence, the company employs the generic strategy which helps it to reduce its operational cost, ultimately leading to the reduction of the selling cost. Thus, this strategic choice has enabled Toyota survive in a global marketing which was dominated by the local manufacturers. The business model of a company determines the extent to which a company is successful. The business model of any company is defined as the structured plan of a company to identify different sources of revenue, attract the customer base through innovation, and accomplish business success effectively (HSGUniStGallen 2017). Various companies have various business models as per the needs of the industry. It is important to analyze the business model of Google since the company managed to generate as much as $1.21 billion net profit last year (Lazer et al. 2014). Although Google is much more than just a search engine, the success of the company lies in its ability to become the leader amongst all the search engine companies. Keeping this into consideration, it is important to discuss and analyze how Google is able to retain its top position in the world despite intense competition from Yahoo and Bing. Hence, the business model of the company will be critically analyzed to understand how it contributes to organizational success. Although most of the people tend to think Google as a diverse place, the company in reality is not as diverse as it appears to be. In fact, the business model that Google follows relies on the use of advertisements, hat adds to the maximum share of its total revenue. In fact, it is important to note that Google generates approximately 98% of its massive billions in revenue from selling ad space (Laser et al. 2014). Google is well aware that until and unless people would search for and read information, they would not usually come across the advertisements. This is why the companys business model is based on its ability to establish itself as a reputed search engine. Besides, it is equally important to state here that the companys business model is also based on the idea of updating the search engine, so that the people have something or other to expect from Google each new day. The business model of any company is based on the concept of innovation and the most important and innovati ve aspect of Google business model is that it provides free service to all the users who do not need to make any payment while accessing the web pages from the search engine. Instead of trying to make money from the online users, the company makes search engine service free while charging the advertisers. Thus, owing to its business model, the company makes the revenues from Advertisers who are interested in reaching out to the online users. It charges money from the advertisers on a cost per click basis, and it charges nothing from the online searchers as a result all the searchers end up searching information from Google only. Reference List: HSGUniStGallen 2017. Business Model Innovation. [image] Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed 22 Aug. 2017]. Kryscynski, D. 2017.What is Strategy?. [image] Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed 22 Aug. 2017]. Lazer, D., Kennedy, R., King, G. and Vespignani, A., 2014. The parable of Google Flu: traps in big data analysis.Science,343(6176), pp.1203-1205. Thompson, A., 2015. Toyotas generic strategy and intensive growth strategies Management.Retrieved April,27, p.2016.