Characteristics of Adobe’s corporate-level strategy
Companies or organizations that are diversified in nature often make use of the corporate level strategy (Hong-Wei, 2008). Adobe Inc. is a typical example of such companies.
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To remain competitive in the market, Adobe has coordinated and integrated several types of businesses within a single unit of software development. For instance, the company has put in place a successful portfolio of design-related software packages. As a result, it is possible to meet the different tastes and preferences of customers.
Since its inception, Adobe has also facilitated several strategic mergers and acquisitions to strengthen its product offering and remain economically viable. Economies of scale and reduced cost of production have been made possible through mergers and acquisitions (Watson & Wooldridge, 2005).
The company has also embarked on the development of prestigious products as part and parcel of its corporate level strategy. In other words, it makes use of industry-standard tools in the production of its software products.
Adobe has a wide range of product offering. The presence of several software platforms is a key performance metric and a development strategy that the company cannot ignore. It is pertinent to mention that the company has compelling content in terms of the various products it offers in the market.
Also, software products are designed for both amateurs and professionals. A user-friendly interface is incorporated in most software products so that customers who are not technologically savvy can also benefit from the products. The company also restricts market competition by developing products that cannot be easily substituted.
As it stands now, Adobe leads in multimedia design software packages since software redevelopment is maintained at a very high level. Besides, flagship products are upgraded after every one to two years.
Define the nature of its diversification approach
The nature of Adobe’s diversification approaches heavily relies on the corporate culture that has been practiced since the company was formed in 1982. The corporate cultural values that are practiced in the company include involvement, innovation, excellence, and authenticity.
The development and marketing of Adobe’s products are determined by the above values. It is also interesting to note that employees are given a lot of priority in the course of a production. The company considers its workforce as a major factor of production (Haveman & Nonnemaker, 2000).
One of the dominant diversification approaches used by the company is the creative and interactive software solution. The latter software solution is tailored for clients who are professional in their respective fields. Web and application experts also benefit from the same solution. Second, video products and professional imaging are contained in digital media solutions.
These are most suitable for individual business users who may not be fully professional or expert consumers (Chiu, 2007). The company clearly understands that non-expert users are more in the market than the professional consumers. Therefore, it is necessary to create a business segment that can benefit them.
The knowledge worker segment addresses various needs of professional workers who deliver vital services to the company. Engineers, educators, accountants, and programs are some of the knowledge workers who offer critical services daily.
The enterprise segment mainly focuses on the immediate and long term needs of large scale organizations and government departments. Finally, the online business optimization offering and web analytics are provided by the Omniture business unit. Adobe online marketing suite is an example of a product generated by the Omniture segment of the organization.
Chiu, Y. (2007). Corporate Diversification and Risk Management: Methodological Approach. Journal of Financial Management & Analysis, 20(2), 1-6.
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Haveman, H. A. & Nonnemaker, L. (2000). Competition in multiple geographic markets: The impact on growth and market entry. Administrative Science Quarterly, 45(2), 232-267.
Hong-Wei, H. (2008). Corporate identity/strategy interface: Implications for corporate level marketing. European Journal of Marketing, 42(1), 10-15.
Watson, A., & Wooldridge, B. (2005). Business unit manager influence on corporate- level strategy formulation. Journal of Managerial Issues, 17(2), 147-161.