MGT604 Strategic Management: Pro-Go Pty Ltd Competitive Advantage

This report outlines the strategic approach used by Pro-Go Pty Ltd to achieve a sustainable competitive advantage in its action cameras. It explores strategic options, including market research, market segmentation, and product differentiation, ultimately favoring the product differentiation approach. The report discusses the implications of this strategy, including potential challenges in the short and long term, such as increased production costs and rapid technological changes. The analysis emphasizes the importance of unique camera features to attract customers and maximize profits, concluding that market differentiation is an efficient strategy for Pro-Go Pty Ltd. Desklib provides access to this and other solved assignments for students.

Running head: Report 1
STRATEGIC MANAGEMENT
STUDENT’S NAME
COURSE
UNIVERSITY
DATE

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EXECUTIVE SUMMARY
The success of the business relies heavily on the achievement of sustainable competitive
advantage in the market in its products. This comes with various formulated strategies to
facilitate the achievement of the objective. The most significant strategy for the organization
under study is the market differentiation strategy which can be achieved through having unique
features for the camera and offering the best price so as to attract consumers initiating the
purchases in high quantity.

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Table of Contents
INTRODUCTION.....................................................................................................................................3
AIM............................................................................................................................................................4
Strategic options........................................................................................................................................5
Market research strategy..........................................................................................................................5
B) Market segmentation strategy............................................................................................................6
C) Product differentiation strategy.........................................................................................................6
Preferred option – Product differentiation approach.............................................................................6
Implications for Market differentiation strategy....................................................................................7
Challenges..................................................................................................................................................7
Short term..............................................................................................................................................7
Long-term..............................................................................................................................................7
Conclusion..................................................................................................................................................8
References..................................................................................................................................................9
Appendix- Team work log.......................................................................................................................10

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INTRODUCTION
Strategy refers to the course of action to be pursued by the business for the realization of the set
goals and objectives by the business enterprise. The business strategy should always be revised
by the relevant team to enhance the achievement of a new objective such as the achievement of
sustainable competitive advantage over other firms with similar products in the market.
AIM
This report is going to outline the strategic approach that shall be used by Pro- GO Pty Ltd for
the achievement of sustainable competitive advantage in its action cameras.

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Strategic options
Due to the need to achieve a sustainable competitive advantage, the executive team of Pro-Go
management which comprises of: the general manager, general manager of key supplier, union
official, production manager and the senior finance manager has to play a key role in the
formulation of the strategy that shall be applicable for the next five years to enhance the
achievement of sustainable competitive advantage within the company (Wheelen, Hunger,
Hoffman & Bamford, 2017).
The following are the options that can be adopted in relation to the development of the strategy
for the improvement of the cameras to achieve sustainable competitive advantage over other
similar and related products in the market.
Market research strategy.
The general manager can find out various companies that produce good cameras and
determine the efficiency which includes the most important features of the camera in the
prevailing market as compared to the cameras produced within the company (Schilling, 2010).
This very important for the future development of unique cameras.
The general manager of key supplier has the task to identify a unique firm that shall be
supplying materials as per their specifications as innovation increases. This important because it
shall facilitate quick implementation of new ideas which may facilitate the improvement of the
cameras.
The union official has to conduct a research to identify other unions that offer the best services
for the employees who enhance the production process so as to establish how the union affiliated

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by employees of Pro-Go can be effective to enhance employees’ satisfaction which in returns
results to better production.
B) Market segmentation strategy
The production manager has to ensure the production of the cameras with unique specifications
that shall be suitable for the consumers within a given geographical location (Jia, Wang &
Xiong, 2017). The senior financial manager has to budget for the advertisement costs to enhance
the advertisement of the cameras in a given market segment to attract the target customers.
C) Product differentiation strategy
After a thorough market research, the production can identify the unique features for the camera
that the competitors’ do not offer. This shall enable the company to market itself because of its
unique products.
Preferred option – Product differentiation approach
From the available three options the Pro- Go management preferred the product
differentiation approach for various reasons:
Through the addition of the unique features to the camera, the customers shall be easily attracted
The company can be a monopoly for certain types of camera specifications hence enjoying
maximum profits.

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Implications for Market differentiation strategy
The organization shall experience growth and development due to profit maximization (Banker,
Mashruwala & Tripathy, 2014). The general manager’s task shall be easy since his main role will
just to oversee the trend of the company products in the market as compared to those offered by
the competitors.
Challenges
Short term
The overall production costs may increase because the supplier may take advantage of the firm’s
situation and supply at a relatively higher cost.
The product cannot be perfect after the development as consumers’ feedback is essential to
ascertain the effectiveness
Long-term
Rapid technological changes require frequent developments which is usually costly for the
company.

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Conclusion
The choice of a strategy is very crucial for the achievement of the organizational objectives. The
company’s choice of the market differentiation strategy shall be efficient in ensuring the
maximum gain in the sale of cameras due to the unique features of the cameras that shall attract
the customers.

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References
D. Banker, R., Mashruwala, R., & Tripathy, A. (2014). Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy? Management
Decision, 52(5), 872-896.
Jia, C., Wang, Y., & Xiong, W. (2017). Market segmentation and differential reactions of local
and foreign investors to analyst recommendations. The Review of Financial
Studies, 30(9), 2972-3008.
Schilling, M. A. (2010). Strategic management of technological innovation. Tata McGraw-Hill
Education.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management
and business policy. Pearson.

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Appendix- Team work log
Meeting dates Time Minutes for the meeting.
1st September 2018 10:00 AM- 2PM Discussion of various
strategic options to be
adopted to obtain a
sustainable competitive
advantage.
25th September 2018 9:00AM- 11AM Analysis of each and
every strategy in details to
come up with the best
strategy.
5th October 2018 2pm-4pm Analysis of the chosen
strategy to determine its
effectiveness.