LSME 501 Strategic Management: Case Study on IMI's Niche Strategy

This case study provides an in-depth analysis of IMI, a global engineering company, and its strategic approach to niche markets. It examines the company's strategies, including knowledge and skill management, and its niche market strategy, highlighting the benefits of reduced competition and enhanced brand loyalty. The report assesses how IMI differentiates itself through new product development and cost reduction strategies, ultimately achieving a competitive advantage. Recommendations are made for sustainable development, market share growth, and cost-effective marketing. The case study concludes that effective strategies, particularly in niche markets, are crucial for organizational success and profit maximization.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Strategy and its purpose...............................................................................................................3
Knowledge and skill management:..............................................................................................4
Niche market strategy..................................................................................................................5
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Strategies play a very key role in the success of an organization. That is very important
that there is effective formulation of strategies so that it can help the company in achieving the
organisational goals and objectives. IMI is a global engineering company that includes different
engineering specialities. It is a company that is recognised for its innovative solution in over 50
countries. It combines the skills of its employees and knowledge to understand the market needs
and wants.
The report defines the strategies and its purposes. It also shows and explain the purpose
of these strategies in achieving organisational goals, also, the report examines the niche
marketing strategy.
MAIN BODY
Strategy and its purpose
It refers to the long term plan that will assist the organization to attain its goal and
objectives. With the aspect of strategy, the company may set the direction in which it need to
move and divert its actions (Grant, 2021). The making of strategy would be performed on the
basis of key goals and objectives of the company.
The content of the strategy involves various aspect and steps that will need to take place
and adopt in order to move forward. It includes a set of rules and responsibilities that act as
guidance and set direction that will assist the goal achievement.
The process of formulating a strategy is to have a consideration of the objective of the
company. This means with a consideration towards the aim the strategy would be formed by the
company. This also includes the aspect of using the available knowledge that will act as base for
the formation of direction of the business and the actionable steps that will assist the company to
move towards the direction of its objectives.
The major purpose of the strategy formulation is to have an attainment of the goal of the
company. With the formation of strategy, the direction and the way of performing action would
be set that will lead to the movement of operation (Baylis, Wirtz and Gray, 2018). The major
purpose of the strategy formulation is to have maximization of the strength of the organization
and minimization of the strength of the competitors. It can be right to said that with the aspect of

strategy the company can bride its success in terms of where it is and where it wants to be? This
means it acts as a bride that will drive the organization towards its goal.
In case of IMI whose major strategy is related with the engineering advantage in terms of
making an inculcation of the skills and knowledge, innovation and other aspect would assist the
company in terms of making it directed towards its goal of becoming a market leader in the niche
market. This clearly shows that with the formulation of strategy that is related with the
engineering advantage of the IMI would drive the organization towards its goal. As the main
goal of the IMI is to become a market leader that will be assisted and grabbed with the
formulation of such strategy that will that will make focus over the expansion of the business in
the selected area and making an investment in new market that will lead to the grabbing of share
in the market. While considering the strategy of IMI it can be said that it includes three major
aspect including engineering skills, market leading position and exposure to such market which
are benefitted from long term structural growth.
As strategy is the base and the plan that will drive the organization towards its goal thus,
IMI while making a formulation of its strategy, it need to make consideration towards the market
trends that will lead to analyses the market and customer demand. After that with the concerned
focus over the demand a strategic plan would need to be made by the IMI that will assist the
organization in the attainment of goal in terms of becoming a market leader. In this way the IMI
need to make such strategy that will fulfill the concept of valuable which shows that company’s
policy and strategy will be different and directed towards its aim. In the same way it must be rare
which shows that the strategy will give competitive parity. It must be imitable that no one can
replace it and it need to be organized that would guide in goal attainment.
Knowledge and skill management:
Knowledge and management is an important aspect in the context of the business. This
means it is important that the concerned business have adequate knowledge regarding its
customers and the market. This will lead to play an important role in enabling competitive
advantage to the company in terms of acquiring the customers and the market share (Turco, A.L.
and Maggioni, 2020). With the persistence of required knowledge the companies can meet their
goal. Knowledge would lead to assist the company in terms of grabbing competitive advantage
and market share.

Skill management refers to the management of skill that will lead to assist the organization
in the attainment of its goal and objective. Management of skill in terms of learning the skill,
development of skill and its management is all included in this concept. This is an important
aspect that will deliver the competitive advantage to the company. With the concept of skill
development and its exploration would lead to assist the company in gaining competitive
advantage and the exploration of the market and company’s aim (Chainarong, 2019). This is
also associated with the concept of training by which the existing skill will be developed along
with learning the new knowledge.
It is to be noted that with the persistence of required knowledge and skill the company can
make itself superior over other and thus gain the competitive advantage in terms of skilled and
knowledgeable workface. This can also be understood with the aspect that the with the holding
of required knowledge and required skills the company can make itself better than other in terms
of making an efficient utilization of the resources. This will also lead to enhance the company’s
overall operational efficiency.
Thus, it can be evaluated that IMI uses the knowledge and skills of its employees in such
a way that helps the company in understanding the needs and wants of the target audience. That
is with the interpretation of the needs and wants it further helps the company in developing of
new products that helps in fulfilling these needs and requirements (Mhandu, Ojong and
Muzvidziwa, 2018). Thus, this provides the company with a competitor advantage that is with
analysing the needs of the customers with the expertise skills of its employees it helps in them in
developing the products accordingly. On the other hand, the skills and knowledge of its people it
one of the strengths of the company while serving in the markets. Thus, by offering tailored
services to its target audience with its expertise skill set of its people it helps the company in
building a strong brand image. Thus, it results in leading the company towards growth and
success with achieving higher profitability and productivity. Also, providing quality product and
services to its consumer which in turn results in enhancing its brand image and loyalty
Niche market strategy
Niche market refers to a segment of market that is defined by its unique attributes and
preferences (Akbar and et.al., 2017). In other words it can be said it is a broader segment that its
own preferences and needs. Thus, niche marketing refers to the challenging all efforts of
marketing in a well defined direction of a segment population. However, a niche market does not

mean a small segment of market but it a market that deals with specific target audiences with a
specialised approach. It refers to a market high level of specialisation with few competitors.
Thus, for attracting these market and to operate in these market there are various strategies that
are adopted by the company for achieving its goals and objectives. Thus, with the adoption of
these strategies there are several benefits that the organisation enjoys (Sert, 2017). That is one of
the major benefit of the niche market is that there is very little competition. As these market
serve the needs of limited target audience there are very less competitors offering these services
and products. Thus, with less competition there is less availability of substitutes which helps the
company in having a pricing advantage which help in maximising the profits (Jamshed and
Ahmad, 2018). Thus, with the inculcation of the niche marketing strategy it help the company in
enhancing its brand loyalty by offering products and services that are not offered by other. Thus,
this results in leading the company towards higher profit maximisation and in turn leads the
company towards higher productivity and efficiency.
However, it can be evaluated that proper implementation of niche market strategy is very
important for the growth and success of the company (Anzaku and Salau, 2017). It can analysed
from the case study that IMI uses various different niche market strategies that helps the
company in differentiating itself from other and built its market positioning. It can be evaluated
that the company develops the new products for increasing its business ion the niche market.
That is it focuses on investing in new products so that the needs and demand of the niche market
audience can be fulfilled. On the other hand, it adopts the strategy of reducing its manufacturing
costs and the cost involved in the chain of suppliers. Thus, with the adoption of these strategies it
is helping IMI in gaining a competitive advantage that is it with the development of these
strategies it is able to fulfil the needs of the targeted audience efficiently before its competitors.
Which in turn is resulting in increasing the profit margins for the company. Also, it is providing
the company with a competitive edge over its competitors as with effective marketing strategies
it is able to identify the needs of the customers before its competitors and to provide for those
needs before the competitors (Rakkarn and Nakrungrueng, 2017). Thus, providing the company
with a competitive advantage. On the other hand it is very important for organisation to keep in
mind the impact of external environment on the niche market strategy (WAYUA and LINDA,
2020). That is for a business to be successful it should meet the requirements of the environment.
Thus, with complying with the global issues, IMI offers its customers with products that are

developed with sustainable energies. Thus, with the innovative engineering it is helping the
company in achieving success with higher profit maximisation.
Recommendations
1. It is recommended to IMI to focus on developing strategies that help in sustainable
development that is which helps them in managing the scarcity of resources. Thus, helps
them in managing the use of resources with minimal wastage.
2. It is also recommended to the company for increasing its market share in the niche
market it can use a strategy of acquiring the businesses of the competitors so that they can
create an environment where there is monopoly.
3. Also, it is recommended to the IMI to adopt marketing strategy that helps in lowering the
cost of production that will in turn help them in increasing their profit margins and also
will hep them in providing goods and services to the customer at a reasonable prices.
CONCLUSION
From the above report, it can be concluded that for organisation to achieve its
organisational goals and objectives it is very important that they develop strategies. Also it can
be concluded that niche marketing strategies are very important in profit maximisation for an
organization. That is with the implementation o these strategies it provides companies with a
competitive advantage. Furthermore, it can be concluded that there are different strategies that
are adopted by different organization in targetting the niche markets. Thus, with implementation
of these strategies it helps in increasing the productivity and efficiency of the organisation in
providing quality goods ans services to the consumers

REFERENCES
Books and journals
Akbar and et.al., 2017. Niche marketing strategy framework for SMEs: A conceptual
framework. Available at SSRN 2999227.
Anzaku, T.A.K. and Salau, E.S., 2017. Niche marketing potentials for farm entrepreneurs in
Nigeria. Journal of Agricultural Extension. 21(3). pp.136-142.
Baylis, J., Wirtz, J. and Gray, C. eds., 2018. Strategy in the contemporary world. Oxford
University Press, USA.
Chainarong, P., 2019. Knowledge management for skill improvement motivation.
Grant, R.M., 2021. Contemporary strategy analysis. John Wiley & Sons.
Jamshed, M. and Ahmad, S., 2018. Niche Marketing of Date Palm based food and beverages as
health products. Journal of Economic Cooperation & Development. 39(2). pp.49-67.
Mhandu, J., Ojong, V.B. and Muzvidziwa, N.V., 2018. Modus operandi and the socio-spatial
milieu in which immigrant niche markets vis-a-vis informal economic
activities. Journal of Social Development in Africa. 33(2). pp.85-108.
Rakkarn, S., Ratanamaneichat, C., and Nakrungrueng, W., 2017. A model of Thai agricultural
co-operative product development and marketing for niche markets. KASEM
BUNDIT JOURNAL, 18(October), pp.1-10.
Sert, A.N., 2017. Niche marketing and tourism. Journal of Business Management and Economic
Research. 1(1). pp.14-25.
Turco, A.L. and Maggioni, D., 2020. The knowledge and skill content of production
complexity. Research Policy, p.104059.
WAYUA, N.C. and LINDA, K., 2020. NICHE MARKETING STRATEGY AND FIRM
PERFORMANCE OF BAMBURI SPECIAL PRODUCTS LIMITED IN
KENYA. International Journal of Social Sciences Management and
Entrepreneurship (IJSSME). 4(1).
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