Strategic Management in Melita: Types of Strategy, Competitive Drivers, Internal Analysis, and Strategic Choice Models

This document discusses the strategic management in Melita, a telecommunication company. It covers the types of strategies used by the company, the impact of competitive drivers on its competitive position, the use of internal analysis tools and models, and the strategic choice models used by the company. The document provides insights into how Melita is using these strategies to gain a competitive advantage in the market.

STRATEGIC
MANAGEMENT

INTRODUCTION
Melita is the telecommunication company which is providing the cable television and the
mobile telephone services. It is also providing the internet services to the customers. It was
founded in 1992 and it is managed by the Harold rosch. The CEO of the company and the
effective services are provided by the company. It is providing the digital set up box to the
customers which was commenced form the 2010 in Malta. The report consist of the strategy
consultant which is advising the board of the directors of the company. It would advise the
company about the strategic decisions which must be used by the company. It includes the
strategies used by the company in the last five years and the detailed analysis of the company
internal and market. Report consist of the strategies which must be used by the company and the
implications of the recommendations of the consultant which is given to the company.
TASK 1
Types of strategy and strategic concepts
Strategy is the set of the actions which would run across the management of the
company. It includes the strategic decision which are benefiting the company and helping the
company to achieve the long term goals. Strategy is multidimensional and multidisciplinary as
well. Strategies used by the company are following the hierarchical structure. Strategy and
tactics are used by the company is resulting in the improving the decision-making process of the
company and the employees.
Types of the strategies
Corporate strategies
Corporate strategies are based on the growth and stability of the company. It also
includes the retrenchment and the combination of the strategies which are used by the company.
It has the four pillars which include the allocation of the resources, port folio management and
strategic trade-offs. In the corporate strategy the company is focusing on the employees and the
capital which is invested by the company in the products. The company is investing in the
employees of the company and the in the products of the company. So the company would
ensure about the resources which are being properly used by the company (Cohen, and et.al.,
2016).
Business level strategies

they are concentrating on the competition in the industry and in the market. It is including
the cost leadership strategy. In the cost leadership strategies the company would be focusing on
the cost of the products in the market. Cost of the product is attracting the customers towards the
company. Differentiation strategy is uniqueness of the product which is provided by the
company. Company is making the product with the innovative ways and which include the new
features of the product. The product is improvised and made according to the customers need
which is attracting the customers towards the company (Geubbels, and et.al., 2015).
Functional strategies
Functional strategies include the operation strategy and the marketing strategy. Finance
strategy and the human resource strategies are also followed by the company. The company need
to perform in the market and for that the company would follow these strategies and the
environment of the company in the market. Company must follow the strategies and the
departments of the company would follow the rules and policies. In the functional strategy the
human resource department is focusing on the providing the effective services to the employee
so that they would improve their performance (Rothaermel 2017).
Here, it is analysed that Melita is following corporate strategy that focus on its growth
and stability. They are expanding in markets so that it can sustain for long term and retain
customers as well. also, they are investing in many things to raise capital to fulfill their needs.
With that they are focusing on solving issues such as low quality of services, etc. moreover, by
following corporate strategy they are gaining competitive advantage in the market.
TASK 2
Exploring the competitive drivers and its impact of competitive position
Competitive drivers are the increasing the competition in the market and in the country.
Competition is increasing because the globalization is increasing in the country and the various
multinational companies are entering the market. Diversity among the customers and the culture
of the different countries are affecting its growth. Industry and the market is changing country
from time to time. So the customers preferences are changing and the customers are attracted
towards the company which is providing the effective products at the low cost (Ramirez, and
et.al., 2016).
Slow technological changes

Technological changes are impact on its growth and the business in the market. Melita is
suing the latest technologies for making the products to selling the products. Melita is tele
communication company so the company have to use the latest technology and attract the
company. In the field of the telecommunication the customers want everything and the up to date
and the customers want everything in the effective condition. Here, due to slow advancement in
technology it has affected on company growth in negative way. Besides, quality of services
provided in degrading that has led to restrict them to gain competitive advantage. Melita is the
telecommunication company and is also providing the effective services on the internet sector.
So the company must also use the latest internet features and impress the products according to
the latest technology.
Increase in the inflation
Inflation is raising because of the low growth in the economy. The company is affected
because of the low growth rate in the company products. Rise in inflation has resulted in
decrease in purchasing power of people. They are not spending of services to buy it.
furthermore, economic growth is affected due to inflation. Thus, it is impacting on Melita
growth. For example – rise in internet cost will be charged from customers. The people are not
having the money to buy the products so the people are eliminating the unnecessary products.
Customers are not using the unnecessary products which are affecting the business growth in the
industry. The inflation is increasing and so the performance of the company is decreasing
because the inflation is affecting the business growth in the market. The growing rate of the
products is impacting the business because the company would not buy the raw materials of the
product and it would affect the quality as well as performance of the products.
Globalization
It is main driver of competitive advantage. It has provided platform for companies to
expand in other countries and provide products and services. Similarly in telecommunication
sector as well new entrants emerging and offering services at low cost. Thus it has resulted is
impacting on Melita growth. Globalization is increasing the competition in the market because
the company would be using the latest technology for improving the performance of the
Company. Due to the globalization various other global companies are entering the market it is
increasing the competition in the market. Market performance is affecting the growth of the
company because the growth of the company is depended upon the competitors in the market.

Various other MNC’s are entering the market and these companies are entering the market with
their new and innovative products which is attracting the customers. Globalization is affecting
because the company of our country is not performing and improvising the product.
Economic growth due to pandemic
It has been a driver which is affecting on Melita growth. Due to pandemic of Covid 19
entire global economic growth is adversely affected. It has led to decline in GDP of them.
Therefore, due to that company competitive position is impacted to a great extent.
increase in the capital
increase in the capital is affecting the competition in the market because the company
would be affecting the business. Many people have accumulated investments and now they are
investigating the in the capital form in the companies. These people are staring new business
form the capital and due to these the competition in the market is increasing continuously. The
company is also facing the threat because the investors are investing the multinational companies
which are entering the market. These factors are increasing the competition in the market. The
increase in the capital would affect the performance and the services provided by the company
(Johnson 2016).
Skilled work force
skilled work force is affecting the company performance and the also due to the skilled
work force the company would fight the competition in the market. The company would be
affected because the employee performance is affecting the company performance. The
employees of the company would let affect the competition on the company sales, and they
would fight the competition in the market. Employee performance is affected due to the effective
services and facilities provided by the company. Skilled work force includes the employees
which are working in the company.
High exports and imports
The globalization is increasing and so the various companies and exporting the products
and importing the products from the other countries The customers are changing their
preferences and the goods are exported and imported to the competition for the companies are
rising due to the various other companies which have not entered the country market yet. Export
and the import of the products is having the impact in the performance of the company in the
market. These multinational companies have not opened the store in our country but customers

are attracted towards the companies which are entering the market and also ruling the market of
country form the other country (Jarzabkowski and Kaplan 2015).
TASK 3
Use of the internal analysis tools and models
Internal analysis of the company is affecting the company and employee performance
which are working in the company. The company is using the swot analysis and the other
measures are also affecting the company performance which includes the culture and the policies
as well. The workforce is also affecting the company performance like the employees'
performance is also affecting the company performance. Internal environment of the company is
affected by change in external factors. The company is using the swot analysis as well.
Swot analysis
It evaluate internal factors of firm and contain strengths and weakness. It also includes
the opportunities and the threats are affecting the company performance in the effective way.
These factors are a affecting the internal environment of the company (Terziev, Kuzdova and
Georgiev 2017).
Strengths
High quality services is been provided by company to customers
Large target market within the country and variety of services offered
First company to offer digital set up box services.
strengths of the company is helping the company to earn high profits and the expand the
business in the effective way. The company is using the latest technologies because the company
is the telecommunication company and need to use the latest technology. The financial goal of
the company would be used by the company and it would improve the performance of the
employees in the company. Innovative products of the company are attracting the customers and
these would be strength for the company. Skill and efficient employees of the company are
helping the company to achieve the long term growths.
Weakness
High rise in complaints regarding poor quality of services.
weakness of the company is only visible to the company. The company need to overcome
the weakness and improve the performance. The company is dealing in the telecommunication
products so the company is facing the problems regarding the technology. Company must hire

the skilled employees which would help the company to overcome the measures in the effective
way. The Latest technology is the help for the company while if the technology is used by the
other and provided to the customers improve process is the problems of the company. So the
company must be ready with the technical problems faced by the company in the market (Grant
2016).
Opportunities
To grow in other markets and generate revenue
To expand at global level by doing technological advancement
opportunities are given to everyone but few of them are able to grab them. The
companies get the new opportunities but very few companies are able to grab these
opportunities. The company must use the latest technology and attract the customers and look
after that the technology is not provided to the competitions in the market. Opportunities are
available for the company in the market but the company need to identify these opportunities and
grab them. The opportunities of the company could be use of the latest technology and expand
the business. The company is the telecommunication and so the company would expand the
business and fulfill the long term goals.
Threats
Increase in competition from other companies
Shift in needs of customers due to OTT content available on smart phones.
The increase in the competition is affecting the product in the market. The customers are
attracted toward the other company in the market. Due to the globalization the competition is
rising the in the market. Then market of the Malta does not have the strict rule for the new
entrants in the market. So the various new companies are entering the market and these would
improvise the competition in the market (Kearns Schmidt and Glantz 2016).
Work force
work force is affecting the company and the growth of the company. Work force includes
the skilled and talented employees for the company. The performance of the company is
affecting the growth of the company. The employees of the company must be satisfied and if
they are not satisfied they would not give the effective and the best performance. Effective
employee relations must be maintained in the company sot that the work of the employees must

be managed accordingly. Effective employee relations are helping the company to work in the
effective way.
Culture
the culture of the company is affecting the growth of the company in the effective way
and it would affect the growth and the objectives of the company. The culture of the company
would is affecting because the employees of the company do to have the power of the decision-
making. The culture of the company must be as so that the employees of the company have the
decision-making power regarding the projects. Culture is used by the hierarchy level and the
power is distributed among the employees so that the level of the hierarchy. The employees
which are working at the low do not have the power to take the decisions (Shen, and et.al.,
2015).
TASK 4
Strategic choice models and competitive position
The companies are using the porters generic models which are helping the company to
gain the position in the market. Many companies are trying to the take the advantage of the
competition in the market but only some companies are achieving these types of the goals.
Through the competitive advantage the competitors are not able to attract the customers and the
offer the products at the low prices. The companies are using the latest strategies for attracting
the customers and for that the company is using the porters generic model. The company is also
adopting the strategies and the porters five forces strategies which would improve the efficiency
of organization (Engert, Rauter and Baumgartner 2016).
Porters generic model
the model is divide among the differentiation and the cost of the products in the brand
and the narrow Market (Daggupati, and et.al., 2015).
Cost leadership
The aim of the cost leadership is to provide the goods at the lowest prices. Cost is
attracting the customers and the cost cannot be kept lower than the manufacturing price. The
company has divided the market segments and the company will sell the products in market but
if the same other company is selling the better products in the market in some customers would
switch the product and company as well. The product quality and the standard of the product
must not be compromised by the low cost of the product. As the company is the

telecommunication company the company need to provide the effective service and also the
company would achieve the objectives as well. The products would be sold in the market at the
time of the offers and discounts. The cost of the products must be low and these would attract the
customers (Shariatzadeh Mandal. and Srivastava 2015).
Cost focus
very small companies in the market could provide the advantage of the low cost product.
Market is divided and segmented according the buying power of the customers. The low price of
the product would not affect the quality of the product and the services and the services as well.
Some customers are cost focused, and they need to provide the low cost, they do not have the
problems related to the quality of the product. Some customers want the brand products at the
low prices. It will attract more customers. These types of the products would be provided to the
customers at the time of the offer and discounts.
Differentiation focus
in the differentiation focus, the company has to make the innovative and unique product
which would attract the customers. The markets for these types of the products are quite small
but it is sold in market at low prices. The products must be made according to the customers and
the need of the customers which is satisfying the need of the customers. Differentiation focus in
the marketing strategy which is including the marketing of the product in the selected market
which would increase the sales of the product. Some companies are selling the premium quality
products to the customers at the high price. Differentiation attracts customers because of its
unique features
Differentiation leadership
the differentiation leadership is the targeting the market to achieve the competitive
advantage across the country. It is gained by the superior quality products and the branding of
the company and the product. The products of the company would be distributed across the
major countries and the consistent promotion of the product. The customers want the Superior
quality of the products and the which includes the features and the branding of the product.
Durability and the reliability of the product depends on its quality. These factors would improve
the performance and the productivity as well.
Porters five forces model

in the porters five forces model the company would analyze the industry and the
performance of the company in the market. The porters five forces include the supplier power
and the buyer power as well. Competitive rivalry and the threats of the substitute products is
affecting the company (Hattie and Donoghue 2016).
Buyer power
the buyers of the company are affected by the price of the product. If the price of the
product is not as per the product the buyers would not buy these products and the company
would suffer the losses. Buyers have the power to company to change the prices of the products.
The buyers usually do not have the power to but the products above the financial condition so
the buyers buy the products at the time of the discount and some buyers switch the company of
the product. The of the company need the satisfaction related to the product features quality and
the durability as well. Product performance is also viewed by the reliability of the product.
Supplier power
the suppliers are supplying the raw material to the company for the products. The
company has many suppliers but the suppliers cannot put their terms and the conditions before
the company. In the case of the all the suppliers are under one roof than they would force to
change the term and conditions as per them. In the case of there is only one supplier the company
would not listen to the supplier and also the deal would be signed on the term and the conditions
of the company. The suppliers of the company would affect the performance and the
performance of the product in the market as well (Meyer and Ray 2017).
Threat of the substitute products
the company is making the distribution in the market there are also the substitute products
sold in the market by the other companies. So the company must look after the substitute
products, and they to develop new to attract people. These substitute products are gaining the
place of the product in the market and so these substitute product would take the place of the
product in the market. In case the product quality is low it would affect the sale of the company
products and the image of the product would be ruined in the company market. The substitute
products are affecting the company and the performance of the product accordingly which would
affect the company performance in the product performance in the market.
Threat of the new entrants

threats of the new entrants is affecting the company and the performance of the company
would be affected because the competition would be increased in the Market. These factors
would improve the performance and the service as well. The new entries are entering the market
with the new and the innovative ideas which would help the company to improve the
performance. The competitor is using the latest technology and the company would not improve
the performance as well. Company is focusing on the performance and the company would not
improvise the product accordingly. The company need to change the feature of the products
which are going to be sold in the market (Pereira-Moliner, and et.al., 2015).
TASK 5
Implications of the strategy
The company is using the corporate strategy which is need to be implied on the company.
Corporate strategy include the marketing implementations and the technology implication as
well. It includes the knowledge based synergies and the personnel needs of the employees. The
corporate strategy is looking after the need of the employees and the resources which are being
used in the company. The knowledge of the employee would change the preference of the
employees and it would improve the performance of the company as well.
Use of the models and demonstrate the relationships in key resource areas
The company is focusing on the relationship of the resources which are used in the
company. These resources include The operations and the finance and marketing department as
well. The employees of the department must be effective and must communicate in the effective
way. These would improve the relations of the employee which are working in the company.
These all the department are linked to each other in the effective way which would improve the
productivity of staff. The firm is focusing on this department with the product preparation to the
product selling. The departments of the company are working but these need to improve the
employees relations between these departments (Elsawah, and et.al., 2015).
Once the product is in the production department the marketing department is giving the
knowledge to the customers department with the needs of the customers regarding the product.
Than the production department is communicating with the technology department for
improvising the products as per the need. Then if the product is made it would communicate with
the finance department for the price of the product and the investment which is need on the
preparing the product. This department are efficiently managed by them employees and these

employees are managed by the human resource departments which are satisfying the needs of the
customers.
Application of strategic implementation models
In this Melita can implement porter generic model and cost leadership strategy. Here,
they can provide services at low cost to people so that customer base in increased. Also, even if
new entrants comes then it will not impact company as they will be having a high brand value in
the market. So, porter generic model can be applied by them to grow and expand.
Swot is done to achieve the long term objectives which will improve productivity of firm.
The weakness and the threats must be overcome as soon as possible because it would harm the
company. It is also affecting the external environment business because if the internal
environment of the business is effective that the external environment of the company would not
be hard for the company to achieve the objectives.
CONCLUSION
From the report done above the board of the directors of the company are provided with
the strategic Plans for improving the business performance in the market. The company need to
follow the strategies which would improve the performance. Swot analysis is done in the report
in the effective manner. Form the swot analysis the company is using the strengths and the
opportunities as well. The weakness and the threats are to be overcome with the effective
measures. The company need to improve the performance with the porters generic force and
porters five forces is implied in the company. It would benefit the company and the performance
of the company would be changed accordingly. Through these models the company would
overcome the problems in the company which are faced by the company in the market. The
strategies given by the company is used and implemented by the company which would result in
the effective manner form improving the performance.

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