Rolex Strategy, Enterprise, and Innovation: A Comprehensive Report

This report provides a strategic analysis of Rolex, examining its internal resources and capabilities, including financial, physical, technological, and reputational aspects. It identifies key drivers of change in the external environment, such as competition, technology, and government regulations, and their impact on the company. The report utilizes Porter's five forces model to assess the competitive landscape and evaluates two strategic options: the Ansoff Matrix and the BCG Matrix, to determine opportunities for market expansion and increased profitability. The Ansoff Matrix is used to identify market penetration, market development, product development, and diversification strategies, while the BCG Matrix is employed to evaluate business growth and opportunities. The report justifies the use of the Ansoff Matrix using the SAFE criteria (Suitability, Acceptability, Feasibility). Overall, the report offers a comprehensive understanding of Rolex's strategic position and provides insights into how it can maintain and enhance its market leadership.

STRATEGY, ENTERPRISE
AND INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a.) Critically analyse internal resources and capabilities............................................................1
b.) Identify the key drivers of change in external environment and their impact.......................2
c.) Porter's five forces model.......................................................................................................3
TASK 2............................................................................................................................................4
a.) Critically evaluating two strategies which can help in earning opportunity in market. ........4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy and innovation is a base for any organisation and it aids an association while
selling their product and services in better manner. Moreover, strategy is being made after having
a research and it helps an enterprise to have an proper working in firm as well as such thing will
support overall business towards attainment of their goal and objective in correct prospect even
(Jones and English, 2010). The report is based on ROLEX which is founded in year almost 1905
by HANS WILDORF and ALFRED DAVIS. Along with this, assignment is going to analyse the
internal resource and capability, key drivers of external environment and its impact on
organisation. Moreover, Porter's five force models and having any two strategic options which
will be recommended, and even the selection of each strategy is outlining in this project.
TASK 1
a.) Critically analyse internal resources and capabilities.
According to (Cooke, 2015) states that, ROLEX is having a great internal strength which
help them to have an effective working environment at organisation and they have a great
research team as well which make them to have a proper criteria of working. Internal resource
can be of any kind of like (financial and physical), and in tangible it is like ( Technological,
reputation and human resource) and although it is such which help company to have a effective
task completion in right contrast. These resources as help company to have attainment of their
goal and objective in correct format as well.
Financial resource: Even the ROLEX is having a great financial reputation in market
and company is working and serving millions of people and customer with their quality product
and service in right manner and thus they earn in higher way, moreover this is something which
needs to be consider and the borrowing capacity of the company should be good and the firm has
to have a greater fund generating entity and thus somewhere this help to determine the capacity
as well and thus in market there are fluctuation in the demand and profits as well. If ROLEX
compete in right contrast then they have a finance part in strengthening scenario.
Physical resource: This is something which is related to plan, equipment, assets and
technology which is a raw material. Although it is being resale value of the asset and age of the
capital equipment and flexibility of PPE and this should be taken care in right prospect and this
has to be a proper one so that ROLEX can bring physical resource in strengthening position.
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Technological resource: It is something which needs to be used in correct format and
technology is that which provide strength to ROLEX of being stable in market and help to
manufacture the quality product and service for customer and thus it make them to attain their
goal and objective.
Reputation: ROLEX has to make a ownership of the brand and has to bring a proper
relation with their customer and this is something which is a reputation and the firm's products
and services which needs to be done in right manner and this is that which attract the people and
customer to attain their goal and objective in correct format (Aladwani, 2016). Although the
reputation of the company and this is being with supplier and employee which increase the
productivity of firm as well.
Capability and the resources is such which is being not good and thus the productive of
firm is even not at their own. The most amazing thing is that require a collaborate with their
teams and they are working together. This is being which is a organizational capabilities and this
is refers to firm's capacity in right contrast which particular productive in activity. Moreover,
when ROLEX wants to Know about themselves then they can use their functional classification
approach in correct manner. Although, it is kind of thing that organised capability is there and in
relation to functional areas.
b.) Identify the key drivers of change in external environment and their impact.
There are various factors which is impacting entrepreneurial activities and thus they
affect the working of company as well and this is something which needs to be taken under care
and thus they have to consider all such criteria and have to work in right prospect. Some of the
external factors are as follows:
Competition: This is such which affect ROLEX and other company in great manner and
thus it is something which needs to be taken in proper way and although the competition is such
which is required to be and thus it has seen that the ROLEX is having many competitor which is
working in better manner then other as well (Blind and et. al., 2010). Competition is such which
changes the working scenario of company.
Technology: The technology is such which is being considered as external criteria, and
even when the environment of market changes the different companies do change their
technology as well which can compete with the other firms. This affect the working and decision
of ROLEX and this is something which needs to be worked on in proper criteria as well.
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Government regulation: Government is that which changes their policy and procedure
on yearly basis and this is something create problem for the company and it affect working of
ROLEX even though. Regulation is like having a protocols and norms which is having a
opposite impact and even company has to follow their rules and regulation in right contrast and
sometimes it create a problem for organisation to have a proper working scenario.
c.) Porter's five forces model.
For ROLEX there are various major competitors which affect the working condition of
company and thus it is that which affect the whole organisation as one. Porter's five forces model
is that which help firm to have an effective working in better manner.
Threat of new entrants: When a company is thinking to enter in any of the industry then
they can move on and if there is a profit and few barriers are there which create problem in enter
(Luftman, Lewis and Oldach, 2014). Moreover, the chances of new entrants is high with few
things like:
 When there is a requirement of lower capital to enter into market.
 Although there is no regulation on government policies.
 Moreover, there are lower customer loyalty is there.
 With such the economies of scale can be achieved in ease manner.
Bargaining with suppliers: Higher bargaining power is something which allows the
suppliers to have the higher selling and priced with low quality to their buyers in better manner.
This is something which create problem for them as because with this company has to pay the
higher amount for such. This is related with few scenario like:
 Few substitute and having a raw material which exist.
 In this few suppliers are there and many buyers.
 Moreover, it is kind of thing like switching raw material and it is quite especially high in
criteria.
Bargaining of buyers: Buyers are those who have the power to make a bargaining for
the quality products from the direct manufacturers (Kotey and Meredith, 2017). Company think
that when they will provide the quality product to customer on lower prices then they will
receive lower revenues even though. The various things are there which is being considered in
this and those are as follows:
 Only few buyers exist in this.
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 Moreover in this scenario the buyers are the price sensitive.
 Switching costs to the other supplier and it is low.
Threat of substitutes: ROLEX is having a threat of their substitute in the market and
thus various products of watches are there and customers are having a variation in availability of
their product and services which is becoming a threat for company.
Rivalry among competitors: Rivalry is something which creates problem and issues for
the companies to get stable in market and perform in better manner and thus firms has to handle
the situation in proper manner. ROLEX is working hard and bringing various innovation and
creativity in their product so that they can beat their competitors in right contrast.
TASK 2
a.) Critically evaluating two strategies which can help in earning opportunity in market.
According to (Veugelers and Cassiman, 2013) says that, ROLEX is that company which
is looking forward to have a better working in market and thus company chooses various
strategies to have a effective working in right contrast and decision can be made in correct
format as well. These are those strategies which is making them to evaluate the opportunity of
expanding their business in market and earn higher profit as they can. There are various
strategies which can be opted by organisation and from those company has chosen the best two
strategy which can help in better manner to business and such are as follows:
Ansoff Matrix:
As it is such which help in making a strategic planning initiative as well. Moreover, the
concept is such which help in communication and thus various tool is there which help in having
a possible growth of strategies which is for the organisation. The hard work is such which is
making them to have an hard work and goes with selecting one of four strategies which can help
ROLEX to increase their opportunity on market and thus it makes them even better to perform in
right criteria as well.
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According to diagram, each box of it represents something a different growth in strategy
and those are as follows: Market penetration: This is something which focuses on a current
product and market which help in increasing the market share of company and its goals as well.
Market development: It is that which help company to capture the new market for their product
and services and even ROLEX is looking forward for using and selling their product where it
were not earlier (Drucker, 2014). Product development: Bringing innovation and creating in their
existing product and service or introducing the new goods in market and attracting more and
more customer in right prospect as well. Diversification: This is such which create the complete
new opportunity to the developing the new products and somewhere it will be introduced in
newer markets as well.
Each quadrant is having its different level of risk. Moreover, the market is having a
lowest risk and it also emphasize the markets and in existing products as well. Diversification is
also having a highest risk as because this also involves the development of the various new
product and thus taking them to new market and even in better manner as well.
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Illustration 1: Ansoff Matrix
Source: Ansoff matrix, 2018.

Justfication of Ansoff amtrix using SAFE criteria.
Suitability: This is something which suits the company in better manner and thus it is
likely to have and with this a growth in work can be seen and thus this help in earning high
prices in right contrast as well.
Acceptibality: Ansoff matrix is such which is acceptable to company to have a better
working and even ansoff amtrix is very much helpful to company as this help company to come
out in various situation as well.
Feasiability: Moreover this is very much feasible in working and this is something that is
feasible in nature and help inc arrying the work in better manner and it is quite feasible for the
companies as well.
BCG Matrix:
The BCG stand for BOSTON CONSULTING GROUP which is designing various things
which help in long term relation with the strategic planning, for all such criteria the company
goes with considering the various things of business growth and opportunities as well and this is
something which reviewing the portfolio of company and their product and services which is
making them to decide various thing and where they can make a investment, or cam go with
discontinue and developing products in better manner (Schmitz, 2012). Although, this is
something which is having a growth and share of their matrix in correct format.
Justification of the BCG matrizx using the Safe criteria.
Suitability: This is such which help company to have a better working too. Even the
suitability is also checked and thus if it suits then it is being used for organsiation and even this
help in maintaining the long term relation as well.
Acceptability: BCG mat5rix is very much acceptable for working and even this help in
having increment in performance as well. Acceptability is that which is being there with the
company and this help in raising the sales of organisation too.
Feasibility: BCG matrix is quite a feasible term and thus it also make them to use it
when it is required. Feasibility is that which provide strength to company that it helps in
increasing performance of company too.
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According to such matrix, the organisation is being classified into High and Low,
although this is done on the basis of their industry growth rate and firm is having its market share
(Cooke and Memedovic, 2010). Moreover, the matrix is having for cells in which the horizontal
axis represents the think like relative market share and the vertical line shows about growth rate
of company in market.
CONCLUSION
From the above report it has been concluded that, strategy enterprise and innovation is
such which help ROLEX to attain their goal and objective. This is something which make firm to
have an effective strategy for market and make a proper decision and according to such the work
has to be done. Moreover, the entity is choosing quite two strategies which will make them to
have an effective working. Although the organisation is also bring innovation in their product
and service after having research of market and manufacturing watches by ROLEX according to
needs and wants of business and this all such which make firm to attain their earning higher
profits as well.
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Illustration 2: BCG Matrix
Source: BCG Matrix, 2018.

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REFERENCES
Books and Journals
Cooke, P. and Memedovic, O., 2010. Strategies for regional innovation systems: learning
transfer and applications. Vienna: United Nations Industrial Development Organization.
Chandler, A.D., 2016. Strategy and structure: Chapters in the history of the industrial
enterprise (Vol. 120). MIT press.
Schmitz, H., 2012. Local enterprises in the global economy. Edward Elgar Publishing.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Veugelers, R. and Cassiman, B., 2013. Make and buy in innovation strategies: evidence from
Belgian manufacturing firms. Research policy. 28(1). pp.63-80.
Kotey, B. and Meredith, G.G., 2017. Relationships among owner/manager personal values,
business strategies, and enterprise performance. Journal of small business
management. 35(2). p.37.
Luftman, J.N., Lewis, P.R. and Oldach, S.H., 2014. Transforming the enterprise: The alignment
of business and information technology strategies. IBM systems journal. 32(1). pp.198-
221.
Aladwani, A.M., 2016. Change management strategies for successful ERP
implementation. Business Process management journal. 7(3). pp.266-275.
Blind, K., and et. al., 2010. Motives to patent: Empirical evidence from Germany. Research
Policy. 35(5). pp.655-672.
Cooke, P., 2015. Regional innovation systems: general findings and some new evidence from
biotechnology clusters. The Journal of Technology Transfer. 27(1). pp.133-145.
Jones, C. and English, J., 2010. A contemporary approach to entrepreneurship
education. Education+ training. 46(8/9). pp.416-423.
Online
Ansoff Matrix, 2018. [Online]. Available through
:<https://www.ukessays.com/essays/marketing/strategic-ability-of-hong-leong-bank-
marketing-essay.php>.
BCG Matrix, 2018. [Online]. Available through :<https://www.managementstudyguide.com/bcg-
matrix.htm>.
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