Strategy for e-Types

Strategy for e-TypesFormulating the way to go ahead by Tanmay Shah

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Why is strong strategy essential?

Attractiveness of environment ?Which Market?Which product?

How do we position ourselves?How to exploit our resources?How do we build and sustain competitive advantage?

Quoting the strategy: e-Types should start competing in new markets such as New York, London, Berlin etc. And start by tap the startup culture there by taking advantage of their strengths. They should enhance their management system so that they can further make their weakness into strength and Threats into opportunity.Based on following

Specialization and strong reputation in Identity business.Cutting edge design- Best Designers in EuropeAbility to grow Creative integrity and the funky factorWork Culture: They have the attitude of working overtime if required just to get a good idea. Ability to get best for the client.Strong capabilities in routine and processes

Limitations to economies of scaleBottleneck due to partners participation in every step of every project(for maintaining quality)

Foreign markets such as New York, Berlin, London Boom in the start up culture who demand unique identity for their positioning.Technological advancements.

Not finding enough work for their workforce (which would cost burden)The staff quitting and making their own company.

Why do managers too often formulate sub-optimal strategies?Bounded Rationality and Limitations of Resources & Cognetive Ability

Homo Economicus and Political Coalition of among the top executives of the firm for personal interest

Managers also use Heuristics and are often complacent and short-sighted

e-Types should expand its operations to other markets such as New York, Berlin, London, Los Angeles etc. Starting with New York by finding some people who have the same set of values as them. Then create a wholly owned subsidiary and transfer their style meaning copy themselves to that market. This will definitely be cost effective (considering the hidden cost) and profitable in the long run as comparted to staying elite in Denmark and doing international jobs form there. They need to make improvements in their formal reporting system as to remove the bottle-necks.

They have strong capabilities and resources as mentioned above hence they will sustain their competitive advantage in the new market with them. Talking about external factors: there is always a huge demand in corporate Identity business as especially with the rise of the startup culture which they should exploit.

Based on following

Yes, there Intangible and Human resource are highly valuable.Yes, their expertise and capabilities are rare: 80% competitors are out of their league. They have a unique asset the staff of mixed professionals who work toward the big idea by contributing ideas from across disciplines and challenging each other to stretch their imagination.Yes working conditions and work culture here is so good that the employees wouldnt want to leave. Its all about the passion and attitude. These things cant be imposed or bought they have to be created from within. Hence costly to imitate.Yes! They have the adequate attitude along with correct routines and process for capturing the value of the resources!

The EndThank you!