Pro-Go Pty Ltd: Business Environment and Strategic Management Report

This report presents a strategic plan for Pro-Go Pty Ltd, an action camera company facing a critical situation due to defective products and the loss of a major customer. The report begins with an executive summary and table of contents, followed by an introduction outlining Pro-Go's background and market position. The aim is to develop a strategic plan to maintain a competitive advantage. The discussion section analyzes the crisis, emphasizing the need for immediate action and identifying Ansoff's product/market strategies as the most suitable approach. The strategies proposed include product development (innovating new features), diversification (expanding into new product lines), and market penetration/expansion (online market and new markets). The preferred strategy combines all three, implemented through a framework involving product diversification, e-commerce market launch, and new product development. The conclusion highlights the importance of proactive planning and adaptability. The report recommends a five-year plan, diversification, and a board of qualified professionals. References and an appendix are included to support the analysis. The assignment addresses the business environment and strategic management challenges faced by the company, offering detailed solutions to ensure its long-term stability and growth.

Assignment on Business Environment and Strategic Management
Assignment on Business Environment and Strategic Management
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1Assignment on Business Environment and Strategic Management
Executive Summary
The report tries to understand the present situation of a company that specializes in making an
action camera. The Company is facing problem due to defective model manufacturing where the
lens is bursting into flames without an explanation being found. The different department are not
able to detect the problem have no ready solution now. More over the company is also going to
lose its largest customer – a major retail chain in China. This has impacted immediately on the
company’s revenue and forced it to see option or liquidate. Its now very important for the
company to address the situation. the strategies that can save it from disruption has been
developed. These strategies when implemented can bring back the stability in the company’s sale
and profit.

2Assignment on Business Environment and Strategic Management
Table of Contents
Introduction.................................................................................................................................................3
Aim..............................................................................................................................................................3
Discussion....................................................................................................................................................3
Strategies.....................................................................................................................................................4
The Product development.......................................................................................................................4
Diversification..........................................................................................................................................4
Market Penetration and expansion.........................................................................................................5
Preferred strategy.......................................................................................................................................5
The framework........................................................................................................................................5
Conclusion...................................................................................................................................................6
Recommendation........................................................................................................................................6
References...................................................................................................................................................8
Appendix...................................................................................................................................................10

3Assignment on Business Environment and Strategic Management
Introduction
The developing economy is seeing boom in technical products such as laptops, smart
phone, tablet and other gears. The Pro Go Pty LTD company is well know seller of small, high-
quality action cameras. It has worked on innovation, and technology to provide an excellent
quality product in small package. It new product can operate with small batteries for longer
periods of time. The video produced are having superior colour, and works effectively in dim
lighting. The company is based in Geelong, Victoria that has seen a continuous year-on-year
growth. They also have technology in its devices been patented by Pro-Go. In this case study
they are seeing the competition from other smart phone companies that can produce same quality
of video along with manufacturing defect (San, Chey, & Hock, 2018). The manufacturing defect
is more dangerous as threat will be impacting negatively on their goodwill. The market share of
the company is lower in the market and it will face tough times if they are not ready with a full
proof five year plan. There are some of the strategies that can save the company from liquidation
but these strategies can’t wait for high level approval. It has to be a prototype plan and run as
soon as possible.
Aim- To develop a strategic plan for Pro-Go that can maintain the goodwill of the company
along with providing competitive advantage in the market.
Discussion
The Strategies that best fit for this situation, so that, the company is able to gain
confidence in the market. The most important step that the company should take is to first
understand the problem, Why suddenly the product unit is producing faulty products and have no
explanation for this. The research and development team has to be active instantly to find the
cause. The company should immediately stop the production and arrange a meeting with the
production and research and development team to discuss the reason for the faulty camera. This
may be of great help in development for the further strategies to save the existing losing market
of the company.
The three strategies that may be most suited for this extreme situation can be based on the
past experienced by the same industrial company. The strategies are based on the how the sale of
the product can be maximized along with positive goodwill development (Cusumano, Gawer, &

4Assignment on Business Environment and Strategic Management
Yoffie, 2019). A product that has lost its market not due to competition but because of its own
faulty quality may have difficulty in regaining the market trust.
Strategies
The strategies that best suit to uphold the crisis and prove to be a savior are the Ansoff’s
product/market strategies that can only be best suited to make the required change in the sale of
the products(Ansoff et al., 2018). At this moment the company is losing its stakeholder and need
a new plan for developing growth factors for survival (Teece & Linden, 2017). They have to be
more innovative in the competitive market. As we can see that the company has its 70% stake of
shares by their most trusted importer in China. They are worried as their liquidation is under
threat and that can cause the company to lose the existing employees trust. Thus it’s important
that they plan a three way strategies to focus on product, market and diversification.
The Product development- The most important situation is that the company is known for its
small, high-quality action cameras that major competition from the smart phones. That can also
perform similar task with multiple function along with it. Thus the first step they have to take is
to develop a new camera with an extra feature that any other smart phone can’t give. In this
process they will be able to not only eliminate the faulty function of the camera but also develop
a whole new line of product with new feature that will give it a competitive edge. The new
feature as suggested can be the video recording functions that can add filter while recording
(Kang, & Song, 2017). That is not present in most of the smart phones. This is a time taking
procedure with investment in R&D, but the company can consider it with positive expectation.
Diversification- it is a need of the time for a successful company. The best example is Amazon
which started as a book selling company and expanded into selling household items, FMCG
items, electronics and have also invested in many new projects like Amazon prime, Kindle,
Zappos and many such new expansion. A company should always be innovative if they want to
survive the ever changing market and. Diversification is so essential for Pro go ltd that they have
should expand immediately into something that can be easily accepted by the customers. The
camera that they are selling is now losing the trust and interest of the customers due to its
defective piece, model and also the competition. As product diversification definitely needs more
planning and more involvement of the boards. It’s best for now to add on some freebies on the

5Assignment on Business Environment and Strategic Management
existing product (Ansoff et al., 2019). Like, they can extend their warranty and promise the
customer for immediate repair or change of the product if it’s faulty. They can start a service
center in most of the places where they sell it. Companies like Hiare, HCl and Acer had used
these strategies and found the results to be ever changing.
Market Penetration and expansion- It’s the best move when the company is losing its trust in
the existing market. In this case China is the most prominent market for Pro Go Pty LTd. A 70%
share is held by major retail chain throughout China. They should have developed alternative
plan for a situation when, China retailer stop purchasing their product. Developing strategies and
innovating year on year is a sign of a successful company. Depending completely on one market
was not a good idea in all contexts. The new strategy that they can follow is if they expand their
market with added features and freebies. An Online market gives Company a bigger market to
focus upon (Gurcaylilar-Yenidogan, & Aksoy, 2018). People prefer shopping online instead of
going to the shop. Thus this can be a best strategy for the company to develop a plan where they
can by themselves or collaborating with other ecommerce market provider like, Ebay, Amazon
to sell their product at discounted price with extra warranty. This will build a completely new
market base not restricted to only one country. This will definitely increase the sale and goodwill
of the company. All these strategies will take at least a month time to reach the desire goal.
Preferred strategy
The strategies that best suit to this situation are all three as discussed. The company can
build a frame work by discussing with their board. It can be applied on by one to get the focused
results. The best preferred strategy can be the one that can save the company at times of
difficulty. A strategy can’t be constant or unchangeable. To be a competitive business the
company should keep updating its strategy or strategies as per the demand of the time.
The framework
They should start with new diversification in the product like they should increase their
warranty and along with this they should offer discounts or gift coupons. Then they should
launch their ecommerce market. The online market can be collaborated with Amazon or e-bay.
This needs an involvement of the marketing team and the IT team. The next essential step is
product development. A new feature in the camera or a new product itself be a challenging step

6Assignment on Business Environment and Strategic Management
but this can bring back the lost goodwill soon (Ansoff et al., 2019). A new developed product
line can have name and design changed with added features of the old camera. All the
development should be immediate and based on the principle of reinstating the goodwill of the
company. A good ad speaks a lot about the company. They have to launch a online as well as
broad cast ad for building trust in their consumers. It will be a good marketing strategy.
Conclusion
To provide an effective solution the company should focus on probable issues so that it
can provide an effective solution to resolve those issues. The case sheds light upon the issues
faced by the high-end action camera company Pro-Go due to the defective model manufacturing.
Earlier it was also facing challenges in the market due to changing market trends and the
popularity of Smart phones. The strategies suggested will have an ever changing positive impact
on the company. It can smoothly deal with the issues it and be able to eliminate any such
conditions in future (Hoerl, & Snee, 2012). The strategies can be modified and developed even
better depending on their requirement. Over all the main aim of the strategies is to give them a
stable structure of sales and profit.
The strategies would help the company to recover from the loss and also help in meeting
the short and long term goals. The advancements in smart phones, the customers are getting
attracted towards a single product for all its needs. Another problem with manufacturing has
disrupted the sale of the company, reducing it to half (Saunders, & Lewis, 2012). Correct
Strategies are the most important thing for a business as it helps to set up plan and procedures
accordingly to gain a competitive edge in the market for longer sustainability.
Recommendation
A company should always be prepared for the coming challenges. To sustain the business
they should have five years plans made in advance. In this case it’s clear that the company was
never prepared with any plan in situation like this, Thus, they started to panic. It’s important for
the companies to understand the trend and the demand. Affordable pricing strategies along with
new feature and freebies are attractive incentive to the customer. The company has to diversify
with a new similar product line and go only with some big ecommerce company. This can only

7Assignment on Business Environment and Strategic Management
establish the trust and sales of the company in future. In one case the company can also make a
board of qualified professional who are coming from different domain and experience. Thus
board should be maintained for these kind of situations. As they must be having relevant
experience they can always provide excellent guidance and strategies in time of difficulties. The
solution that is provided is long term but it has to be modified over and over every year (Adams,
2015). To be stable and successful the company should have a good amount of loyal customers.
The ever changing market will never let any company have a certain number of reliable
customers. Thus it’s important that they keep updating their strategies and plans.

8Assignment on Business Environment and Strategic Management
References
Adams, C. (2015). Understanding integrated reporting: The concise guide to integrated thinking
and the future of corporate reporting. Do Sustainability.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2019). Societal strategy
for the business firm. In Implanting Strategic Management (pp. 285-310). Palgrave
Macmillan, Cham.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2019). Strategic
dimensions of technology. In Implanting Strategic Management (pp. 255-283). Palgrave
Macmillan, Cham.
Cusumano, M. A., Gawer, A., & Yoffie, D. B. (2019). The business of platforms: Strategy in the
age of digital competition, innovation, and power. New York, NY: HarperCollins.
Gurcaylilar-Yenidogan, T., & Aksoy, S. (2018). Applying Ansoff’S Growth Strategy Matrix To
Innovation Classification. International Journal of Innovation Management, 22(04),
1850039.
Hoerl, R., & Snee, R. D. (2012). Statistical thinking: Improving business performance (Vol. 48).
John Wiley & Sons.
Kang, H., & Song, J. (2017). Innovation and recurring shifts in industrial leadership: Three
phases of change and persistence in the camera industry. Research Policy, 46(2), 376-
387.
San, L. Y., Chey, T. K., & Hock, N. T. (2018). Selfie Camera: What Makes Malaysian
Generation Y Purchase This New Innovation?. Journal of Economic & Management
Perspectives, 12(1), 516-520.

9Assignment on Business Environment and Strategic Management
Saunders, M. N., & Lewis, P. (2012). Doing research in business & management: An essential
guide to planning your project. Pearson.
Teece, D. J., & Linden, G. (2017). Business models, value capture, and the digital
enterprise. Journal of Organization Design, 6(1), 1-14.

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Appendix
1. The ecommerce power to keep the business sustainable.
2. The growth of Nike after going online.