Strategic Management Report: Paris Consulting Firm Strategy Analysis

This report provides a detailed strategic management analysis of Specific Learning & Coaching, a consulting firm based in Paris. It begins by identifying potential strategies at both corporate and business levels, considering market penetration, product development, market development, and diversification. The report then critically evaluates these strategies, emphasizing the importance of gaining a competitive edge in the consulting industry. The core of the analysis focuses on the selection and implementation of a market penetration strategy, deemed the most suitable for the firm's current situation. The report further utilizes Porter's Generic Strategies, specifically cost leadership, to evaluate various implementation scenarios. The report aims to guide Specific Learning & Coaching in making informed decisions to enhance its competitive advantage and ensure sustainable growth within the market.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identification of Strategies..........................................................................................................1
TASK 2............................................................................................................................................5
Critical Evaluation of Different Possible Scenarios Strategic Models.......................................5
TASK 3............................................................................................................................................8
Recommendation Route..............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic Management means all the necessary actions as well a proper planning and
execution of procedures, which are associated with providing a competitive edge to companies
within their respective markets. It is a very essential aspect that is adopted by companies to
ensure sustainability and a consistent growth within the marketplace. Moreover, such
management also provides organisations with an appropriate and effective pathway to function
upon, with context to earning better profits and revenue. This type of management enhances the
scope of working and functioning within an organisation as it focuses on all the necessary
aspects which could provide a strategic edge to companies and operates on the same (Engert,
Rauter and Baumgartner, 2016). The report below is based on Specific Learning and Coaching,
which is a management consulting company operating in Paris. The organisation provides
services like consultation in improving the business processes, specifically in areas like
technology as well as outsourcing. Based on the analysis in Project 1, this project is based as a
consultancy report which undertakes identification of possible strategies at both corporate as well
as business level and a critical evaluation of the same. Moreover, a detailed recommendation
would be presented to the company in terms of choosing the best strategy seeing its present
situation within the market.
TASK 1
Identification of Strategies
Within management consultant industry, it is very complex for organisations to ensure
effective functioning which leads to gaining a strategic position within the marketplace.
Moreover, there are several strategies, if applied appropriately, would also ensure sustainability
within the company.
Specific Learning and Coaching is a new organisation, which provides a range of services
to its customers within Paris. As per a detailed analysis in previous project, its structure is quite
effective in case of hiring professional consultants, which would be providing robust and
appropriate services to the people. The business plan which the firm would be adopting is quite
effective for long term as it focuses on employing professionals with a considerate amount of
expertise in this area. Furthermore, having such competent individuals would also help in
achieving better results at the global level.
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However, the implementation of several strategic frameworks like Porter's Five Forces
Analysis and SWOT Analysis made it quite evident, that biggest threat which the firm is
currently facing is related to competition prevailing within the industry. There are several
companies which are directly being a competitor of Specific Learning and Coaching as they
provide similar services to customers within the area. This threat is also reflected by the analysis
of bargaining power of customers, which is very high with respect to Specific Learning and
Coaching. This calls for an effective improvement in its global business strategy.
Thus, an appropriate strategy must be identified by the company which would help the
firm in gaining a competitive edge globally and use its core competencies in the most effective
manner. To attain this, there are a range of strategies, which could help the firm in sustaining
globally and gain a competitive position within the niche markets. Some of the most effective
strategies with respect to Specific Learning and Coaching are discussed in details below:
Market Penetration:
The very first strategy which the company could adopt is market penetration strategy.
Within this strategy, the growth option of the firm would be to provide its existing products and
services within its already existing markets. In this process, the firm would not be focusing on
creating a new offering or expanding new markets, rather, the organisation would work towards
developing unique selling attributes to attract customers in its existing markets (Chen, Delmas
and Lieberman, 2015).
In addition to this, with respect to risks associated with this strategy, it is the least risky
alternative which the firm could adopt. Considering the fact that this strategy guides a firm in
leveraging the present capabilities and resources within the marketplace. In addition to this,
within already existing marketplaces, this strategy would allow the firm in enhancing its
competence by simply maintaining its market share. In case Specific Learning and Coaching
adopts this strategy, the areas on which the firm would be required to work upon would be
improvising customer loyalty, attaining growth in market share as well as enhancing value of
customers. Thus, the focus of company would not be on products or market expansion, rather, it
would emphasise on how best to enhance the value and perception of its product within the
market.
Product Development:
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Within this strategy, Specific Learning and Coaching would be undertaking dealing of
new range of products and services within its existing market. Thus, the company would be
working towards introducing different offerings for its existing customers. In this context, the
firm would be working towards having distinct offerings, such as providing consultancy in
different fields such as education or marriage. Moreover, the firm could also provide expertise in
areas along with consultancy (Certo and et. al., 2016).
In context with risk associated with this strategy, there is higher risk which the firm might
experience. This is because, with development of new offering for existing customers, it
becomes very difficult to accurately anticipate the demand within the market place and
preference of customers. Moreover, having developed a competent offering also requires the
company to focus on marketing and other advertising methods to ensure success in the
marketplace. Thus, by offering different variants, the firm could capture a wider market share, as
well as leverage its core competencies. Hence, not the marketplace, but the services would be the
main factor of emphasis for the company. Furthermore, having adopted this strategy, the
company would gain a competitive edge within the market by providing something new to its
existing service users. However, having such strategy would not be providing the company with
long-term dominance in the market, as competitive firms might provide similar offerings after
sometime, which could be a tactic for gaining a better share of market. Thus, this strategy is
required to be revised quite repeatedly after a certain point of time.
Market Development:
Within this strategy, new markets would be explored with similar offerings. In other
words, Specific Learning and Coaching would be expanding itself in new geographical locations
and would be providing its consultation services within those areas. Different market segments
would be attracted and new customers would be approached by the company for its consultation
services. As reflected in analysis of previous project, the firm requires new strategy in context
with a better functioning in the global markets (Bergh and et. al., 2016). Thus, in case this
organisation adopts this strategy, it would be quite effective to expand its operations in the global
market. However, the company could also perform the same using distinct sales channels like
having agents that could appropriately be a mediator in delivering the consultation services to
clients.
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Market Development could be a very risky strategy. Reasons for the same is that it
contains a high uncertainty level that whether the competition is having a distinguished and long-
established market share in the areas in which this company plans to operate in. Moreover, it is
highly risky to accurately determine the demand and preference of customers within that specific
location. Thus, in context with having to implement this strategy, Specific Learning and
Coaching is required to analyse the demand and supply of that specific area in order to expand
itself with ease in that strategy. In addition to this, the company could also appropriately hire
more competent and effective human resources that would further develop scope of success in
new markets of the organisation (Baumgartner and Rauter, 2017).
Diversification:
In this strategy, Specific Learning and Coaching would be providing new products and
services to new geographical locations. This strategy is a mixture of both product development
as well as market development strategy, where in, the firm would be attracting new segments
within the market with completely new offerings. This could be done by different aspects, such
as firm could completely shift its operations onto different market sectors according to the
demand of their segments. As an example, the Specific Learning and Coaching could provide
educational services to students or could shift in retail sectors for its global customers.
In context with risk, the contingency rate within this industry is highest in relation to the
organisation. The major aspect which is associated with the risk is that it is very costly for
company to shift into a completely new sector and with distinct and new offerings. Furthermore,
this might solve the dilemma of competition within its niche market, however, a very detailed
analysis is required to be performed by the company with respect to competitors and engaging in
processes and products that could help the firm in gaining a competent advantage within the
country. Thus, this factor makes it quite complex for the firm to instil this strategy in its
functioning for longer terms.
Thus, these strategies could function effectively at both corporate as well as business
level for the organisation. However, it is highly essential for the company to attain one specific
strategy which is associated with enhancing the scope of improvement at global level. However,
choosing a strategy would also allow the firm in combating the issue of competition within the
global market (Ansoff and et. al., 2018). For the same, Market Penetration is a strategy which the
firm must adopt in order to resolve its issues globally. This is because this strategy is less riskier
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than all the other strategies mentioned above. Moreover, adoption of this strategy would allow
the firm in expanding the scope of success within the company as it would allow Specific
Learning and Coaching to leverage its competencies in a very effective and essential manner.
Furthermore, market penetration requires the organisation to just improve on its customer value
and other effective attributes within its offerings. This is an effective method as the firm has
competent individuals who are effective in providing consultation services and thus, the firm cuts
up its cost of their training and development activities (Aguinis, Edwards and Bradley, 2017).
Thus, the company could apply this strategy easily as chances could arise of customers
preferring Specific Learning and Coaching organisation against its competitors. Moreover, it
would also deal with its issue of high bargaining power.
TASK 2
Critical Evaluation of Different Possible Scenarios Strategic Models
After selection of possible strategy which the firm would be undertaking in order to
improve its competence and sustain competition, it becomes necessary for them to appropriately
and effectively evaluate several scenarios through which the strategy could be implemented
within the company. In addition to this, there are different pathways which are required to be
explored in context with delivering and implementing the strategy in an effective manner.
In context with Specific Learning and Coaching, there are several essential directions and
scenarios which are present with the company so that it could deliver its Market Penetration
strategy in a competent and appropriate manner. For that purpose, an organisation is required to
implement several strategic models with respect to attain a strategic direction within the
marketplace. Hence, for this purpose, Porter's Generic Strategies would be used as a model. This
framework was developed in context with guiding an organisation to gain appropriate and
effective competitive advantage within their chosen market (Porter's Generic Competitive
Strategies, 2019).
Thus, there are different scenarios which could be assessed using this model. Hence a
detailed discussion regarding the same is presented below:
Cost Leadership:
In this strategy, an organisation tends to produce its offerings at a very low cost.
Competitive pricing in this strategy would be adopted, where firm would be setting out the price
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lower than its competitors within the marketplace. In this strategy, the firm sets out to gain the
competitive advantage just by lowering down the cost (Zhao and et. al., 2017). In context with
Specific Learning and Coaching, the firm is known to employ competent individual to
effectively provide their consultation services to individuals. Thus, in case this scenario is chosen
by the firm to deliver their services, then it could leverage its core competencies within existing
market effectively, by just providing their expert services at lower price range.
However, in this scenario, market penetration could be implemented in two distinct ways.
Either the firm could provide its consultancy services at lowest price possible, which would be
helping the company in gaining a wider market share instantly, or, the firm could use average
industrial pricing to deliver its offerings within the marketplace. In this second case, the firm
would be competing using aspects like discounted pricing and other cost reduction methods. In
this scenario, Specific Learning and Coaching would be focusing on creating better exclusivity
as people would be provided consultations by competent individuals (Trigeorgis and Reuer,
2017). Thus, by improving on their competence, the organisation could deliver this strategy
appropriately within the marketplace.
Differentiation:
Within this strategy, the company is required to present offerings which provides unique
value to customers. Agenda of adopting this as a strategy is to develop a stronger and more
positive perception of the company within the marketplace and in minds of customers.
Moreover, if the firm plans to penetrate the market using this strategy, then the company could
also increase cost of its products by instilling unique elements in the offerings.
Thus, in case this scenario is utilised by Specific Learning and Coaching, then firstly a
unique attribute would be instilled within its services, which could be an additional service, or
higher level of expertise, better technological outputs, etc. Further, the firm would be indulging
in a premium price range strategy, due to providing such effective services to its customers.
However, at one point, this scenario could become risky with respect to the firm. This is because
their unique attribute is risked to be imitated by other organisations, which then would lead these
firms to engage in price wars.
There are several methods by which this scenario could be adopted by the firm. For
example, the company could employ methods like Artificial Intelligence or similar technologies
which would help them in taking corrective decision by examining and forecasting possible
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future solutions. Moreover, the company could also provide customers with additional services
along with consultation, like expertise or additional consultation related services, that would be
adding value to their offerings (Noe and et. al., 2017).
Focus Strategies:
Another scenario within the company is adopting focus strategy. Within the same, the
firm would be penetrating the market by narrowing it down to a specific segment. Thus, by
targeting a group of customers, the firm would be focusing on a specific direction on which it
would be providing its products to customers of that segment. The directions available with the
firm would be either cost leadership or differentiation. Thus, it would be focusing upon either of
these two pathways to penetrate the market further. Hence, this further induces different
scenarios for the Specific Learning and Coaching, which are discussed below:
 Cost Focus:
In this strategy, the company would be providing its offerings at lowest prices for that
particular segment. This would be a segment chosen by the firm in their niche markets. Thus, in
order to penetrate market using a narrow sector, the company would ensure that cost of their
services must be low. For example, in order to penetrate, Specific Learning and Coaching might
target corporate organisation, in order to provide them consultation related to outsourcing. For
that, the company could charge lowest prices possible to penetrate deeper market segments
present in that industry.
 Differentiation Focus:
Within this scenario, the targeted segment of niche market of the company would be
provided certain unique additional features associated with their offerings. However, this
strategy needs a very effective brand loyalty amongst the customers of the company. Thus, in
order to apply this strategy in a better manner, the firm must appropriately target those customers
for whom they are sure of loyalty (Nickols, 2016). Thus, in context with Specific Learning and
Coaching, in order to adopt this scenario effectively, the firm could target its corporate customers
and could provide assistance of expert individuals along with consultation which would overlook
the implication of their consultation services. Such additional services would enhance its market
worth as well as this could also help the organisation in charging premium prices from its
customers.
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Thus, out of all the scenarios above, the firm is required to adopt one which could help
the company in penetrate the market in a very effective and better manner. Moreover, the
direction in context with delivering the market penetration strategy must be the one which could
help the company in sustaining competition for a longer period of time. Moreover, it must also
deal with its issue of higher bargaining power of customers (Moutinho and Vargas-Sanchez,
2018).
For both these issues, the firm must adopt Cost Leadership as their long term strategy to
penetrate the market. This scenario is quite effective for the firm as it would help in enhancing
the scope of success compared to other strategies. As an example, the cutting up of cost would
allow the company to attract more customers apart from its loyal ones, knowing that a high level
of expertise could be provided by the firm at such a lower range. However, if compared with
differentiation strategy, it exposes the firm with threats like imitation from competitors, which
would lead the company into shifting its unique value to new variables. Furthermore, having a
premium pricing strategy would also risk the company with lower preference of customers due to
a different perception. As far as Focus strategies are concerned, focusing on a specific segments
either in cost leadership or differentiation might not provide a long term competitive advantage
within the company (Michael, Storey and Thomas, 2017). This is because the firm would only be
focusing on a specific segment, which might lead to losing up of competitive edge in various
other segments of the market. Thus, in context with penetration of market, Cost Leadership is the
best strategy out of the three to be implemented by the company.
TASK 3
Recommendation Route
After analysis, choosing a strategy along with its justification is necessary. Thus, a
detailed recommendation is required which is essential for the company which would help it set
a concrete pathway related to the strategy which the firm would be taking forward.
For that purpose, SAF Analysis is being used which would be evaluating Market
Penetration strategy provided by Cost Leadership on the basis of three factors that are discussed
as under:
Suitability:
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The first aspect is associated with analysing a long term suitability for the company. This
means that an extent is required to be assessed up to which the strategy is suitable for the
company (Meyer, Neck and Meeks, 2017). For that matter, several essentials are required to be
taken into consideration. These factors are analysed as under: Trends: The very first aspect associated with suitability is the trends which are prevailing
within the industry. In context with management consulting industry, currently people are
preferring quality service at a lower rate. Specific Learning and Coaching has effective
human resources to provide consultancy and hence, if the firm would provide its services
in the market at a lower rate, then it would be suitable with respect to trend. Drivers: Several drivers within the industry such as social and political aspects have been
dominant in the industry. Market Penetration strategy would be very suitable in context
with all the drivers. As an example, socially, corporate firms require consultations
regarding various business decisions. Thus, with existing offerings the firm would be able
to deliver the same effectively. Moreover, in context with political drivers, uncertainty
within the UK requires the firms to deliver their offerings at a lower range. Thus,
suitability of Market Penetration with Cost leadership becomes high.
 Power: The competition within management consultancy sector is very high. Thus, it
becomes evident for an organisation to appropriately present their offerings in ways
which help them reduce the power of rivalry. Market Penetration with reduced cost
would help the firm in leveraging its competencies in a better manner, hence satisfying
the industrial demand.
Thus, all the factors are in align with the strategy which makes Market Penetration
suitable for the company (Hambrick, 2015).
Accountability:
Another appropriate criteria for evaluating the strategy is whether the chosen aspect is
meeting the demands of stakeholders or not. In context with Specific Learning and Coaching,
there are several stakeholders, whose demands are described below: CEO: The very prominent stakeholder is CEO of the firm. The expectation of this
individual is to ensure sustainability within the firm as well as prominent and consistent
growth. Market Penetration using Cost Leadership would help the firm in achieving the
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same as it would help the company in combating competition as well as would promote
the firm's products in the market, contributing to growth (Hill, 2017). Shareholders: Their expectations with the firm relies in terms of having effective returns
of their investment. Technology and Human resources are strengths of the company
Thus, having their services at a lower cost would bring in better returns for the firm,
hence fulfilling expectations of this group. Customers: As mentioned above, customers require quality products at a lower cost.
Marketing penetration would help them prioritising the company and prefer the same in
comparison with other organisations, due to its reduced price range. Thus, it would assist
the company in satisfying expectations of customers.
Feasibility:
This aspect deals with feasibility associated with the strategy. Cost Leadership is viable
only if the firm has enough financial reserve and competent human resources. Moreover,
marketing also plays a prominent role in the overall strategy (Ginter, Duncan and Swayne,
2018). As far as competitive advantage is concerned, the firm has an effective edge, where
technological usage and employees are taken into account, as reflected in Project 1. However,
marketing capabilities of the firm are quite ineffective which would fail to contribute in
achieving the desired results of this strategy. Thus, in order to gain competitive advantage,
modification in the structure is required. Thus, new marketing employees must be hired by the
firm along with a competent manager who is effective enough to communicate offerings of the
firm in its niche markets. Overall, the strategy is quite feasible for the company.
CONCLUSION
Thus, it is concluded by the information above, that strategic management is very
important for companies that aim in enhancing their growth and sustainability within the market.
It is essential for companies to undertake an in depth analysis of the strategies which are
available with the firm to ensure a consistent growth. Furthermore, a detailed justification of
strategy is also required by the organisation to ensure effectiveness. Moreover, it is essential to
apply strategic models to critically analyse the implementation of the strategy. Lastly, SAF
Criteria must be utilised to evaluate the chosen strategy and must be met by the same to attain
business objectives effectively.
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Porter's Generic Competitive Strategies. 2019. [Online] Available Through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
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