Strategic Management: Analysis of Softwire Company

Strategic Management

TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................1
MAIN BODY..................................................................................................................................1
Strategic directions......................................................................................................................1
Internal and External environment of the organisation...............................................................3
Stakeholder expectations.............................................................................................................7
Formulate and verify new strategies for sustainable growth.......................................................8
CONCLUSION............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic Management can be defined as that continuous and regular process of planning,
implementing, monitoring and controlling the activities that are adopted by an organisation in
order to meet their strategic goals and objectives. It usually takes into account the regularly
changing and dynamic business environment in which the organisation operates and tries to
analyse it so that appropriate predictions can be made (Baumgartner and Rauter, 2017). Softwire
Company is a leading IT firm in UK that basically deals in providing digital solutions and
consultancy services to the top and leading brands in UK exclusively. The company solves
various queries of their clients which are usually other organisation and companies and gives
them consultancy services as well. In this report, four major aspect for understanding strategic
marketing will be done in the report and firstly the strategic direction in which the Softwire
company is going will be determined and critically evaluated. This will be followed by
conducting a thorough analysis of the internal and external environment that surrounds the
company and the industry in which Softwire is operating in UK and a critical evaluation will be
represented in the report, the report will also conduct a critical evaluation of the expectations of
the stakeholders of the company i.e. Softwire industry in the current case and in order to
conclude, appropriate recommendations and suggestions’ will be made for the company so that
the Softwire Company can adopt newer strategies that will help them in succeeding in the
business environment that they are operating in UK.
MAIN BODY
Strategic directions
Ansoff matrix is the model that is used by business to find out strategic direction of
companies. Each firm wants to grow well in the market and want to gain competitive advantage.
For that there is need to take support of effective strategy through which company can work
better and can raise its profitability to great extent. Ansoff matrix is the planning tool that is used
by management to determine the effectiveness of particular strategy so that its success rate can
be measured. Softwire is the small size technology firm that provides IT solutions to corporate
clients (Yin, 2016). Company is planning to expand business and want to open new branch in
other locations. There is need to have effective strategic direction so that it can gain success in
the market.
Market penetration
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This is the technique that is generally used by organisation to develop its brand image in
the existing market. Softwire can implement this strategy for its growth, as it is considered as
least risky tactic in which company can sell its IT services in the existing market only. Being a
small size firm Softwire has limited resources (Chereau and Meschi, 2018). Hence market
penetration tactics will give best result to the firm because firm would be able to use its existing
capabilities in significant manner, apart from this, this can support the business in maintaining its
brand image or market share in the current market well. As Softwire is well aware with the
demand of local people hence would be able to offer them products which may satisfy them. But
there is certain limitation of this method as it, limits the firm in local market only hence entity
cannot sell its products to other locations which sometimes create problem in raising profit. But
Softwire can decrease prices of its IT services in order to gain attention of more buyers. By this
way entity will be able to raise its profit and gain competitive advantage as well.
Product development
This is another strategic direction that can be implemented by Softwire to grow well in
the market. Being a small size firm, it has limited products only that satisfy needs of limited
consumers. But if enterprise develop its existing products then it would be better for organisation
to attract new buyers as well. Hence Softwire can offer new products in the current market to
attract new customers. For that entity will have to spend money in research and development and
will have to analyses market demand so that according to demand new products can be
developed. Softwire is working in UK market since longer duration hence it has great knowledge
about needs of this market. It can develop IT services to raise satisfaction level of wide range of
consumers (Ansoff Matrix, 2019).
But this strategy has limitation as well, as company has limited resources and
development of new product will require huge capital investment. This can affect profitability of
Softwire and entity might get fail to bear such high investments. There is high risk involve in this
tactic as it might be possible that entity get failed to satisfy consumers by offering new products
and services. But this strategy is beneficial as well because it increases market share of business
unit.
Market development
This is the strategic direction that can also be used by Softwire to grow well in the market
and expand business globally. Enterprise can enter into new market and can sell existing
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