Competitive Advantage and Stakeholder Report for Synergy Mobile Inc.

This report analyzes Synergy Mobile Inc.'s strategies for achieving competitive advantage in the telecommunications industry. It explores the company's use of Porter's generic strategies (cost leadership, differentiation, and focus) to gain a competitive edge. The report also examines the importance of investment in research and development (R&D), highlighting its advantages and disadvantages, as well as emerging trends such as new technologies and legacy system modernization. Furthermore, the report includes a stakeholder analysis, identifying key stakeholders such as directors, suppliers, customers, and shareholders, and discusses effective stakeholder management strategies. The recommendations suggest that Synergy Mobile Inc. should invest in R&D, diversify its business, adopt modern technologies, and focus on promotion activities to attract and retain customers. The report is a comprehensive overview of Synergy Mobile's business strategy, competitive landscape, and stakeholder relations.

STRATEGY

Table of Contents
SOURCES OF COMPETITIVE ADVANTAGE........................................................................3
INVESTMENT IN RESEARCH AND DEVELOPMENT.........................................................5
RECOMMENDATIONS.................................................................................................................6
PART 2 - STAKEHOLDER REPORT ..........................................................................................6
STAKEHOLDERS ANALYSIS ................................................................................................7
STAKEHOLDERS MANAGEMENT........................................................................................8
REFERENCES................................................................................................................................9

SOURCES OF COMPETITIVE ADVANTAGE
Competitive advantage is a condition where a company produce goods and services at
lower price with equal value. This helps in generating more sales and increase profit margin of
business. There are various factors attributed to competitive advantage are cost structure,quality
of offered product, branding, intellectual property etc. Competitive advantage provides great
value to its stakeholders and firm through certain strengths (Jannesson, Nilsson and Rapp 2016).
Sources
 Distinctive competencies: It refers to strength a business possess which is better than its
competitors. Business products and services differentiate from its competitors at lower
price to gain cost advantage.
 Resources: Resources of the company includes tangible assets such as machines,
buildings, lands and intangible assets includes intellectual property, brand image etc.
 Capabilities: It refers to the resources coordinated with the skills and knowledge in order
to maximize profits and production. Resources need to be fully utilized.
Synergy mobile Inc may use Porter's generic strategies to gain a competitive advantage
(Le Grand, 2018).
Porter's generic strategy
In this strategy, the main focus is on firm's profitability. It describes that how a company
maintain its competitive advantage in its market. Synergy mobile Inc either focus on offering
products to selected market segment or offering products in wider market segments. There are
many segments which may be targeted by the company. Mainly there are 3 generic strategies
such as cost leadership, focus and differentiation strategies. Synergy mobile has also used these
strategies (Scholes, 2015).

Illustration 1: Porter's generic strategies
(sources: Porter's generic strategies, 2019 )
 Cost leadership strategy: In this strategy firm sells its products and services at lower
cost than its competitors to increase profits or increase market share. Even when there is a
price war, as industry grows price declines, firm who produces cheaper products at that
time will be profitable (Porter's generic strategy, 2019). This strategy may depend on the
nature of business. Orange and blue companies are using this strategy to target huge
customer base, increase its market share and due to price sensitivity they are gaining
competitive advantage. Synergy mobiles also need to use this strategy in order to grow its
business and sustain in the market for longer period. Firm succeed in this strategy only if
they are having enough capital to invest in production, skilled employees in product
design and good distribution channel (Soltanizadeh and et.al., 2016).
 Differentiation strategy: It reefers to producing a product and services that have unique
features which are valued by the customers. Company using this strategy have
differentiated products than its competitors, customers get attracted. Both Orange and
Blue companies uses this strategies to add value to customers by providing unique
products. Synergy mobile also need to use this strategy and make differentiate products
which add value to customers. This will increase sales, profitability and customers will be
loyal and retain in the business for longer time. This strategy will be successful if synergy

mobile have good research and investment department, creative and skilled development
team, good marketing team which will communicate the products and a good reputation
of quality of products and innovation (Strategy, 2017).
 Focus strategy: This strategy aims at focusing on a particular target market and gain a
competitive advantage. Under this strategy firm identify need of specific segment and
improve its products according to the needs. Orange and Blue company also use this
strategy in order to gain loyal customers. It is of 2 types focus differentiation and focus
low cost strategy. In focus differentiation strategy company is focused on unique product
offered to target market and focus low cost strategy focuses in offering low cost products
which is affordable. Synergy mobile may also use this strategy to increase its market
share or fulfill the needs of customer (Valeri and Danielis, 2015).
INVESTMENT IN RESEARCH AND DEVELOPMENT
Research and development is a process is an identification of various tools and
techniques used by company in achieving organization goals and objectives. Company do market
research in order to find out new skills, knowledge, strategies, technologies, market trend,
consumers preferences and price of the products. It is used in business operation to fulfill the
needs of customers.
Advantages
 Investing in R&D will result in unique products and services which will increase sales of
the company and increase profits.
 It will give company a competitive advantage in producing innovative products, company
may enter in global markets by investing in R&D.
 Company will enhance its reputation by satisfying the needs of customers and meeting
the objectives of business (Varadarajan, 2015).
Disadvantage
 It incurs huge cost and is a time consuming process. Synergy mobile company need to
invest huge amount of funds.
 Unable to identify the market trends as the data collected is not accurate.
Emerging trends in research and development

Research and development is an essential element for companies wanting to expand
globally. It is necessary to build and improve R&D infrastructure to innovate products and
services to compete in the market. There are various trends in the markets:
 New technologies: Research and development is used to identify new technologies
which is changing whole telecommunication industry. Synergy mobile also need to invest
in R&D to find out trends in new technology such as cloud computing, carrier-grade
WiFi, 5G wireless etc. These technologies will benefit company in increasing its sales,
customer base and profitability (Yuliansyah, Rammal and Rose, 2016).
 Legacy system modernization: Replacing old technologies with modern technologies
will benefit Synergy mobile in producing improved products. To cope up with the new
technologies, company need to train the staff and update infrastructure, it is expensive for
the company but to sustain in the market company need to invest in R&D.
 Developing software's and equipment's: Company need to build software's and
equipment's according to the need of customers in order to provide them with good
experience of telecommunication services anytime.
RECOMMENDATIONS
Synergy mobile Inc should invest in R&D as it is beneficial for company in providing
better services to its customers and increase sales and profitability. Company should acquire
smart technologies, diversify its business to gain income from other sources. Company should
adopt modern technologies so that legacy system can be finished. To compete with its
competitors Orange and Blue company also should focus on promotion activities and fulfill the
demands of the customers. Through investing in R&D company gain competitive advantage by
offering services at lower cost. Company need to use market penetration strategy to attract
customers.
PART 2 - STAKEHOLDER REPORT
Synergy is a telecommunication industry which operates in USA, Asia and Europe. It
provides telecommunication services. The main aim is to do research and development,
marketing and production. To manage the business, company need to identify different
stakeholders that influence interest in the organization.

STAKEHOLDERS ANALYSIS
 Directors: Directors of the company has high power as they regulate the company.
Directors are higher authorities who make decisions through which decisions of
managers are influenced. They are main stakeholder of the company as they have interest
in the company profits. Director of synergy mobile is responsible to make company
profitable and improve the performance in future (Le Grand, 2018).
 Suppliers: Power and interest of suppliers may vary depending on the nature of business.
Long term suppliers have high power as company is dependent on them. Suppliers need
to be paid on time in order to maintain the relationship between them and business.
 Customers: Customers are also stakeholders in the company as they have interest in the
business. Customers are affected by the products and services provided by the company.
They have high power in the business, if they do not like the product than they will not
purchase and switch to different company thus firm will face loss (Shareholder's analysis,
2008).
 Shareholder's: Shareholders are group of people having ownership in the business.
They have high power because they have power to vote in Annual general meeting and
sell their stake in the company. Company may have negative brand image. Shareholder's
having big stake has high power and those who have less stake has low power. The
return on investment depends upon the profits generated by the company. Stakeholders
need to be given dividend annually from the profits of the company (Soltanizadeh and
et.al., 2016).

Illustration 2: Shareholder's analysis
(Source: Shareholder's analysis, 2008)
It is said that mapping stakeholders on right position is beneficial for company in
developing different business strategies to enhance communication, resolve conflicts and issues.
STAKEHOLDERS MANAGEMENT
To manage stakeholders Synergy mobile Inc need to make effective communication. It is
an essential element to maintain relation with the stakeholders. Company need to share each
detail that shareholder need to know. Firm also need make communication plan and ask
stakeholders how they like to be informed. Manager or CEO of the company need certain skills
in managing stakeholders such as leadership, team work, flexibility, confidence and conflict
resolution skills. Company need to gain trust and maintain the interest of stakeholders in the
business whop are resistant to change (Yuliansyah, Rammal and Rose, 2016).

REFERENCES
Books and journals
Jannesson, E., Nilsson, F. and Rapp, B., 2016. Strategy, control and competitive advantage.
SPRINGER-VERLAG BERLIN AN.
Le Grand, J., 2018. The strategy of equality: redistribution and the social services. Routledge.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Soltanizadeh, S. and et.al., 2016. Business strategy, enterprise risk management and
organizational performance. Management Research Review. 39(9). pp.1016-1033.
Strategy, B., 2017. Business Strategy. MARKETING.1(2). p.3.
Valeri, E. and Danielis, R., 2015. Simulating the market penetration of cars with alternative
fuelpowertrain technologies in Italy. Transport Policy. 37. pp.44-56.
Varadarajan, R., 2015. Strategic marketing, marketing strategy and market strategy. AMS review.
5(3-4). pp.78-90.
Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and performance in
Indonesia’s service sector. Journal of Asia Business Studies. 10(2). pp.164-182.
Online
Porter's generic strategy. 2019. [online]. Available through
<https://www.tutor2u.net/business/reference/porters-generic-strategies-for-competitive-
advantage >
Shareholder's analysis. 2008. [online]. Available through
<https://www.stakeholdermap.com/stakeholder-matrix.html >

Online
Porter's generic strategy. 2010. [online]. Available through
<http://www.quickmba.com/strategy/generic.shtml >