Strategic Management Case Study on IMI: Niche Market Strategies and Knowledge Management

This case study discusses the strategies undertaken by IMI, a global engineering organization, to grab a better market place. It evaluates the concept of skills and knowledge management and its application in the entity. The report also presents some recommendations for taking competitive advantage in the drastically shuffling market. The report discusses IMI's niche market strategies and main approaches of niche market strategy. It also provides recommendations for product development, market development, and customer focus strategies.

STRATEGIC
MANAGEMENT

Table of Contents
PART-1............................................................................................................................................3
Introduction of the case study:.....................................................................................................3
Strategies undertaken by IMI:......................................................................................................3
Concept of knowledge and Skills management and its application in IMI:................................4
Conclusion for taking competitive advantage:............................................................................5
PART-2............................................................................................................................................5
Concept of Niche Market:............................................................................................................5
Main approaches of Niche market strategy:................................................................................6
Three strategies as recommendations:.........................................................................................7
Conclusion for taking competitive advantage:............................................................................8
REFERENCES................................................................................................................................9

PART-1
Introduction of the case study:
The case study is about IMI which is a global engineering organization. IMI is now
working in over 50 nations with its great ability to provide widely spread engineering services.
The business is getting operated with B2B model and having clients such as Volvo, Coca-Cola,
McDonalds, etc. It is providing range of engineering services yet there are five main components
such as Severe service, Indoor climate, Merchandising, Beverage Dispense, Fluid Power
(Rabetino, Kohtamäki and Federico, 2021)
In this case study some key areas are to be addressed such as strategies undertaken by the
organization in order to grab better market place. At the same time, concept of skills and
knowledge management and its application in the entity would be evaluated. The report is also
aimed to present some recommendations in order to articulate sort of ideas for taking competitive
advantage in the drastically shuffling market.
Strategies undertaken by IMI:
The organization is widely operating its operations so having great need to fabricate
strong strategies in order to be competitive and lucrative. The organization is having these three
strategies-
1. Hiking its business in the chosen niche markets so can be more customer oriented.
2. Augmentation of growth by making more investments in new products.
3. Keeping its operating profit margin higher and toppling manufacturing costs down so
Operational excellence is the strategy (Price, 2019)
These all three strategies are somehow aligning with the pre-intended aims, goals,
objectives and vision of the organization. IMI is one of the biggest engineering service provider
so having need to work on its strong market position.
As the purpose of the organization is “Our reason for being”. So, long term sustainability
is only possible if the organization keeps generating profits. The modern market is quite drastic
in nature so an entity can not expect its survival with toppling profits, here it can be concluded
that the strategies are aligning with the objectives.
On the other hands the vision of the business is to create tremendous value by sorting
out industrial issues. So for this purpose accentuation on certain markets is essential so the

organization is targeting some markets and working with its best level of efficiency (Berg,
Koelbel and Rigobon, 2019)
The overall aim of the business is to be number one engineering service provider and
wants to hike its market share, Which can only be fulfilled with the prevailing strategies. It is
striving to make its operations more inclined to customers. That's the biggest reason in its
portfolio there are so called names such as Coca cola, Volvo are existing.
Concept of knowledge and Skills management and its application in IMI:
Knowledge and skills management is the notion, where an organization carry out a
process which is aimed to gather, organize, analyse then share its knowledge so can be easily
accessed by the employees. This is an essential system since it enables the entity to keep its
employees highly productive and also gives hand to improve organizational efficiency.
With this regard some key steps are being taken such as- (Nishimwe, et al. 2021)
1) Knowledge gathering.
2) Knowledge procession.
3) Knowledge distribution.
4) Knowledge use.
These all steps are being taken with proper consciousness. The organization is quite
aware of both its internal and external factors which may affect its business operations. There are
number of internal aspects which are being covered such as capabilities of the company, its
innovative approach, efficiency level, areas with priority etc.
At the same time some external factors such as political, environmental, economical,
social, cultural are also being considered. Fact of the matter, that the organization has intended
some areas which are having their great importance such as climate change, resources scarcity,
ageing population and urbanization.
The company is timely evaluating its policies and strategies and making them complying
with these realms. It is giving it competitive age in the market. Now the engineering service
providers are widely operating their business so for such organization there is hyper need to have
deeper understanding operating its business (Afthinos, Kiaffas, and Afthinos, 2022)
Now there are multiple organizations but IMI is known for innovation and skilfulness it
brings which makes it quite special in the market and also visionary too. A well-structured skill

or knowledge management is accentuating IMI to work on range of areas such as Health and
safety, Energy efficiency, Risk in supply chain management, supporting the customers etc.
In the present market scenario there is need to have powerful policies for customer
management. IMI is striving smartly to make it happened. With this regard it is taking actions
and placing bigger challenges for its competitors. So the policies of the organization are helpful
to enhance its overall efficiency.
Conclusion for taking competitive advantage:
The followed strategies of the organization are intensively beneficial yet there may be
some improvements which can be imparted in order to make its operations more lucrative. There
may be some new aspects such as besides innovation and customer satisfaction there is need to
explore new markets too.
The organization is having good capabilities to go for “New Market Development”.
Pertinent to this, the company may explore some developing markets where it can pave its way
forward. This strategy would give it upper hand to expel competition in the market (Cummings
and Janicki, 2020)
The organization is engaged in B2B business so it is also recommended that the markets
are getting vibrant here it may go for B2C or some other form too. By such diversification or
expansion policy the business would be able to put mammoth challenge to its competitors.
About knowledge management some new practises can be imparted by IMI. It is already
doing well yet considering the dynamics of the market it can not rely on the same set of
strategies, here some better actions can be taken to place greater challenges before competitors.
PART-2
Concept of Niche Market:
Niche market can be defined as small part of a large market segment which is
characterized as market segment with some different needs, specific demands, which makes it
different form the rest of the market.
In the modern form of market there is strong need to be segment specific, in order to hike
the growth and paying proper attention to the elements which are to be dealt with. Niche market
can be defined as such helpful market which enables an organization to meet its specific needs.
Niche market keeps some specific qualities or characteristics, which separates it from rest
of the market such as- Having minimal competition, Opportunity to ace higher profits, Strong

demand for certain goods or services, practical needs, Satisfying etc. In such markets there are
intensive chances of customer retention and also ensure better organizational survival.
Main approaches of Niche market strategy:
IMI is abiding with number of Niche market strategies, since the business is being
operated in the global niche market, so the strategies are as- (Salamzadeh, 2018)
Market leadership in the global Niche- IMI is often targetting such small segments of markets
where it can carry out its business with greater lucrativeness.
Blue Chip Clients assisted by KAM- KAM stands for Key Account Management, where teams
of highly smart people are working to bring the best sets of services to the customhouse in order
to meet their requirements.
Customized solutions provided via Engineering advantages- In the niche market IMI have
some big and drastic clients who are having their special needs so it is offering them customized
solutions so can eradicate their roadblocks.
Extensive after-market- IMI is making its image of being the best organization when it comes
to after-market services (Pattiyagedara and Fernando, 2020)
These all approaches of IMI's niche market planning are directly linked to the extraneous
drivers of making growth. These drivers are Urbanization, Ageing population, Climate change
and resource scarcity.
The followed approaches are helpful to align with the market needs. The external factors
which decide direction and degree of performance can be grabbed with better practise of the
intended approaches.
The policy of the organization would be enhancing its role in the other organizations. The
ageing population is a big issue and placing challenge to fulfil requirements of labour but with
the help of customized services such needs can be fulfilled.
Resource scarcity is paving its way across the world. So the approach of market
leadership and for that aim abiding with innovation would be helping it to overcome this threat.
Urbanization is getting prevailed in all niche markets where IMI is running its business.
With the progress of society and urbanization there would be more complexities and needs of
customized business solutions which are bing provided by the fabricated approach (Kamp, 2019)
Altogether, it can be summarized that the approaches of IMI are aligning or linked with
the external drivers of growth and paving way for making better progress.

Three strategies as recommendations:
The performance of IMI has been quite satisfactory, For the year 2019 the adjusted
revenues were 1873 million euros and adjusted profit before tax was around 251 million euros.
So it can be deciphered that the performance is going in positive direction (Effendi, 2018)
Yet the fact can not be rejected that the market is quite moving and organization can not
rely on the existing set of strategies, there is severe need to adopt new strategies in order to be
remained competitive in the market.
Product development is one of the most affective strategy. The company is having its
specific area of serving and doing it with five major services it offers to the clients. Fluid power,
severe service, indoor climate, beverage dispense, merchandising.
Although there is scope to develop new realm of service. It would be giving it uppoer
hand in such a drastic market. At the same time with new product some other markets may also
be grabbed.
Market development is referred as strategy where an organization looks up for new
markets. With this regard, IMI is quite conscious and having it's some targetted markets. Now
the business is being operated in 50 countries with notion of Niche market.
It can be seen as one of the best alternative to expand the business. IMI is well-known
and also having strong market base, by using its goodwill the business may get expanded but for
fulfilment of the purpose there is need to articulate strong policy.
The strategy which has always been in centre by IMI. It gives attention to its clients and
customers. The business is being carried out in B2B form, so the clients are highly specific and
with specific service needs (Delaune, 2022)
As IMI has stated its vision of being innovative and helpful, the business is suggested to
accentuate the policy of keeping its customers at centre. The policy is being already practised yet
the scope of further improvement can not be rejected.
Customer focus strategies will help it to sustain in the market and being effective even in long
run.
So all the strategies discussed above are having great potential to hand in long term market
leadership to the organization.

Conclusion for taking competitive advantage:
Despite having great market diaspora IMI plc is having some drastic competitors such as
NIBCO, ROTORK, HUSCO etc. they are placing severe challenges before the entity. The
strategies such as product development, customer focus strategies, market development will be
helpful to hike the organizational competitiveness.
With new services IMI will be enabled to offer its services to new customers. The present
performance of the organization is satisfactory but having vision of being sustainable and
innovative there is need of providing new sets of services.
One of the most dynamic competitive advantage is “First move advantage” which can
only be grabbed with strategy of exploring or developing new market. It further gives
“Technological advantages” since while working in new market the organization gets obliged to
come up with better technology to penetrate the market.
Keeping customers at centre is the practise which upholds the notions and convictions
organization offers to the market. It also strengthens business in term of “Time based
advantages”.
So form the report above it can be summarized that IMI which is now performing with
huge success rate may abide with such practises in order to wipe out all potential barriers and can
pave way for bigger accomplishments in upcoming time.

REFERENCES
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Afthinos, Y., Kiaffas, Z. and Afthinos, T., 2022. The Serious Game “Top Eleven” as an
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Pattiyagedara, S. S. and Fernando, P. I. N., 2020. Rural Tourism Niche-Market as a
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Kamp, B., 2019. Assessing the economic relevance of International Niche market leaders:
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Delaune, V. P. C., 2022. Iworkinsport´ s development: strategy to expand in a niche
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