Exploring Competitive Strategies of SMEs in South-Western Nigeria

The summary explores diverse studies focusing on how business strategies adapt under varying circumstances. One study examines the effect of 9/11 on strategic variability within the U.S. air carrier industry, highlighting shifts post-crisis. Another investigates the influence of Small Business Institutes on entrepreneurial attitudes, suggesting significant impacts on business mindset and strategy formulation. Additionally, research into competitive strategies among paint manufacturing SMEs in south-western Nigeria reveals insights into performance outcomes driven by distinct strategic orientations. The document also discusses innovation in small businesses influenced by environmental factors and business analytics integration for enhanced strategic planning. These studies collectively underscore the dynamic nature of business strategies across different industries and geographies.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ...........................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Every organisation has some long or short term objectives. They keep their main focus on
optimum utilisation of available resources so they can achieve their set targets effectively.
Beverage industry is a growing sector and coca cola is one of the leading enterprise of this field.
Their are operating their business across the globe by selling more than 15 products. This report
will discuss about ansoff matrix which is can be considered as one of the most important
strategic management technique. It will also include its strength and weaknesses.
TASK
An organisation can adopt strategic management various techniques like BCG matrix,
PESTLE and SWOT analysis, Balance scorecard, Porter's five forces model etc. in order to attain
their set objectives. Ansoff's matrix is another tool which is used by most of the multinational
companies. Following are some advantages of ansoff's matrix:
 Managers of various companies adopt it because it assist in determining expected risks so
an enterprise can move in right direction. In this era, market changes swiftly because of
different factors like technology, government regulations etc. Every organisation want to
predict future uncertainties so they can make effective plans accordingly (Ang, 2011). If
they get little idea about forthcoming time than they can exploit maximum benefit from
that particular situation.
 This technique focuses on growth strategies so a firm can reach their set targets.
Development of business is main objective of every company. If they use this matrix than
they can make effective plans for expansion of organisation.
 Without aim an enterprise can not reach anywhere. This tool assist in setting achievable
target so employees can increase their efficient accordingly. If company do not have any
goals than they can not make effective strategies.
 It also help in formation of alternative plans so they can change their action plan it things
go south. This technique will support them in saving time and money because in case of
emergency they do not have waste their time in taking crucial decision.
Every technique has some shortcomings, following are some weaknesses of ansoff's matrix:
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 This tool do not focus on day to day business operation which is crucial for success of an
enterprise. A company can make effective plans but if they fail to execute them than all
of their effort will become useless. Manager always give more importance to process
instead of result. This tool focus on goals instead of ''how to achieve that goal''. This
lacuna reduce significance of ansoff's matrix.
 The main reason that some organisations do not like to use this technique is its
theoretical model (Ang, 2011). Their is a big question mark on its practical approach.
Manager at ground level believe that plans made in this matrix do not consider ground
reality which is very different from books.
 This tool do not include external competitors who have capacity to change important
decisions taken by an organisation. Sometime other player of an industry make same
strategies which result into huge loss for both enterprises. In order to earn more profit,
company has to get vital information about opponent firms.
 It is an optimistic approach, it do not include unfavourable factors which can become
main reason in failure of a plan. It only talks about good things and exclude bad
outcomes with can derail an organisation.
 Accurately in prediction is difficult, this point reduce the importance of ansoff matrix
because this whole approach is based on anticipation. It include unforeseen events which
may or may not happen in future.
Beverage industry has seen remarkable growth in last three decades because companies
are launching various types of new products. People are getting more choices, this can be
consider as the main reason for success of this sector (Buckley and Ghauri, 2015). Some new
players are also entering in market and they are changing the way of doing business. Coca-cola is
number one company of of beverage industry. It was incorporated in USA and currently its brand
value is more than 34,180 million dollars. Ansoff's matrix focus on four elements, first is market
penetration, second is market development, third is product development and last is
diversification.
In market penetration, company make growth strategy for selling an existing commodity
in existing market. This task can be done by doing sales promotion, advertising, sometime
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personal selling also. In this scheme an organisation do not need to put any extra effort in their
current plan because this thought is based on ''business as usual''.
In market development, organisation make strategies for selling existing product in new
market so they can by finding unused channel of distribution, exporting etc. They can also adopt
various pricing policy because business environment differs in all countries. This strategy
contain more risk than above one because they targets new economy.
Product development – In this plan, business try to introduce new item in existing market.
It include innovation, research and development (Burlton, 2015). This scheme is mainly focus on
finding the need of customers and than produce new product accordingly.
Diversification – This approach focus on introducing new commodity in unused market.
Risk is the integral part of this plan because company will have no experience of industry as well
as product.
Below is the application of ansoff matrix on Coca-cola:
Market penetration strategies: This cited company adopted the various strategies like
they want to expand their market shares , they sold more products or brands to their existing
customers and new one who entered in market. This cited company mainly works to boost their
sales in occasions and events like Christmas eve, Diwali .They can worked well in order to
achieve their goals and objectives. This strategy helps to company in term to keep their product
prices low so this helps to company obtain the greater market share. In UK, the prices of
products and cost leadership is the competitive advantages. It also enjoyed a competitive
advantages because they were mainly concentrate to their prices that are less for other company
providers. In this strategy, Coca cola adopted the corporate social responsibilities , this factor
helps to improve the company reputation and profitability. This cited company mainly works to
designed some kind of vouchers, this process earn high success in past time (Champoux and
et.al., 2012). They also maintain the relationship with their customers so large clients were
interested to purchased their product.
This cited company observed the customers taste and preferences , those are changing
from time to time. This company have worked for various kind of strategies that are exist already
in competitive environment. This strategies such as low price of the product, to consumers are
purchases their product conveniently, committed to CSR efforts, their loyalty and honesty
scheme which this were mostly worked on and strong focus on their employees and clients
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satisfaction and development. They advertise and promote their commodities in large number so
massive customers are interest to buy it. This cited company also give their product to customers
only a taste purpose, this gain the popularity. They advertise their good in different colleges,
exhibitions and any other factors that helps to accomplish their objectives and goals and earn
popularity in near future. Their customer satisfaction level relate to product are unceasing day by
day,so it accomplish goal and objective of company . Coco coal company adopted the various
marketing mix elements like promotion, place , product .They increase the market shares of their
current product, this helps to achieve competitive strategies of pricing, advertising, sales (Chang,
2016). But this strategy need a huge investment in the new market research. This strategy works
for research in market mainly for customer taste and preferences, needs and want of different
type of customers.
Product development: This strategy establish the new products in their existing market.
This elements is most important to meet the needs and wants of customers and analysis the
performance of competitors with the help of new innovative product. This cited company
introduce the various kind of innovative commodities that helps to meet customers taste and
preferences, because customers taste and preferences are changing over time. This strategy is
launched by coca coal company in the name of cherry coke which was established that brand in
1985. IN this coke, company innovate the many flavours that are inherent in this coke. The first
innovate flavour that has succeed is cherry flavoured syrup. Them, company establish all other
flavours like lemon and vanilla, this accomplish the goals and objectives of company and bushed
the competitor competition (Cheng, 2013). This strategy is successful because coco cola
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company can achieve greater benefits from sell various flavours f product in market. The flavour
lemon is very much use by customers their taste increase to this brand.
This cited company adopted the one key strategy that is product portfolio. This company
open up their franchises in different part of country. This franchises help for company goodwill
as increment so they get huge profits and success. They also work to maintain the relationship
with their customers so this helps to get profitability and success. Today the consumers are so
conscious about their health, so they made healthy drinks that are deliver to their customers. This
strategy build and improve the new competencies. This company mainly concentrate to changes
in their modified commodities that are appeal in their existing market. This strategy is important
particularity for those industries which works for mainly to differentiated in order to achieve
competitive advantage.
The company mainly focus on research and development techniques and innovate various
kind of product (Davis, 2012). Their employee works on to customer taste and preferences. So
this cited company made various plans and procedures to establish their flavours on the basis of
changes taste of customers. They innovate different products that helps for business in new
future and their brands are familiarise so it get profits and prosperity in near future.
Market development: This strategy states that to provide the existing product into an
entirely new market. This cited company search their prospective buyers to their existing
prospectus. This cited company establish their new product that indicate the name coke zero in
2005.This product is same as the product that is diet coke, so this is not marked as new
commodity. This coke ingredients consist of low calories which was launched more than 30
years ago. This mainly used only females because large number of men are away from it owed to
its some assumptions made for drink of women. The cited company mainly focus on their
designing part, that are characterised by a shiny black colour. This brand advertising campaign
are so different from a diet coke, coke zero. This cite company opens a new geographical
markets so that they exported their products to an new country, in this way they earn popularity.
They also worked to package their new products which are attractive in nature (Gilad, 2011).
There are so many distribution channel of coco coal company that is retailer, wholesaler.
This cited company has provide their different pricing policies that attract the various
kind of customers or it helps to create new market segments. But this strategy is so risky in
nature compare to market penetration .This strategy mainly focus for targeting new market. This
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cited company has able to export their successful models to a large geographical areas. the
market size of world is huge and it helps to increase the economic growth. This cited company
supply their existing commodities to new market in all over the world with the help of exporters
and importers. If this company existing market provides the limited number of opportunities then
the management of organisation increase to expand the new market in large geographical area,
this get high profitability and success.
Coco cola company has mainly worked to packaging new products into existing market.
They were work in target market (Goll and Rasheed, 2011). They produce their existing
commodities into new market in large number that achieve objectives and goals of organisation
and earn success and profitability. They generate the various policies and procedures for
company establishment and earn to get success in near future. They supply the existing
commodity in new market which helps the company in order to sustain growths and prosperity in
long run. They form different products which are so attractive in nature it helps to company for
earn success in near future.
Diversification: In this field, the company produce the new varieties if product in their
existing portfolio. the goal and objective of this cited company is that to penetrate the new
products in new market. IN 2007, this cited company purchase the brand glacier, that includes
the vitamin type of water that is a type of health drink (Harris, Gibson and Taylor, 2015). This
drinking market have very health oriented and jumped to growing the health of persons in all
over the world. Sometime the new prospect are entering into a market which less number of
similarities with the company market. This cited company inhibit their strength of their new
brand to enterprises into the new type of venture market.
They also start providing the various official merchandising products from fridges to pen
or glasses. Apart of both the strategies that is produce and market development strategies, this
cited company slowly moves to related diversification strategies in order to sustain their growth
and success already discussed the four strategies.
This works to enhance the satisfaction level of customers, but at same time they create
more revenues for the company. this company works to introduce the new product in existing
market, they provide various drinking facilities which are essential for health, so most people are
using this kind of product and company made some policies that helps for growth in near future.
Every business organisation mainly works for improvement this get success and earn
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profitability. They provide the various drinks which are same for coca cola brand that helps to
achieve long term growth in near future (Helms and Whitesell, 2013).
CONCLUSION
From the above report it can be concluded that business strategies play crucial role in
success or failure of an organisation. Ansoff's matrix is important tool of business plan because it
discuss about various types of risk that an organisation can face in business environment. It
focuses on four points, first is market penetration, second is product development, third is market
development and last is diversification. Every technique has some strength and weakness, this
biggest positive of this tool is that in reduces fear of uncertain. But it also have some negative
points like it to theoretical, it do not consider ground information which is more important than
what manager read in different kind of reports. This approach do not concentrate on strategies of
opponent which can business game changer in crucial times.
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