Value Creation in the Strategic Management Process
In analyzing the value creation by different companies, Moorman (2012) underlines that Apple is a wise and talented marketer. The value it creates is based on the three milestones: Empathy, Focus and Impute. Under empathy Apple declares that it will understand the needs of the customers better than any other competitor. In order to improve the performance efficiency, unimportant opportunities are eliminated. Apple believes the first impression matters. Therefore, Apple’s best products of the highest quality with the most useful software is given to the customers in the most creative and professional way. Moreover, the above mentioned is strengthened by the customer-obsessed employees, iterative customer involvement, maximal avoidance of the scope creep, building a moat, enabling differentiation and discovery, creating competitive experiences.
According to the Tesco Official Website (2016), innovative technology drives the company’s success. It is applied in delivering the highest quality of products and services, improving the efficiency of the drilling process as the response to the carefully examined needs of the contractors and rig operators, providing solutions to the boldest challenges of the current market. The huge volume of investments is put into the R&D to reduce drilling costs of the customers, guaranteeing a safe working mode for the employees, and easiness of operations.
Strategic Initiatives in the Manufacturing Industry
Kelly, Melcher, Wiley and Horwath (2013) argue that in order to increase profit margins the companies should stop using “sell-at-all-costs” strategies, which were massively applied during the recession. The tough circumstances of the recession proved companies’ management that it is not a sustainable strategy to sell the maximum volumes of goods and services to the maximum number of customers. This will have only the outcomes of a potential loss of shareholder value, profit margins erosion etc. Instead, a firm should focus on its products and services, study the core and hidden needs of the best customers, build a strong customer base and meet its profit targets.
References
Moorman, C. (2012). Why Apple is a great marketer. The Forbes. Retrieved from http://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great-marketer/
Kelly, B., Melcher, R. C., Wiley, C. F., & Horwath, C. (2013). With the right strategy, companies can increase profit margins on sales.Retrieved from http://www.industryweek.com/corporate-finance-amp-tax/right-strategy-companies-can-increase-profit-margins-sales
Tesco Official Website (2016). About us. Retrieved from …
