Introduction
Mercury International Ltd is a worldwide company that operates internationally; therefore, it has to operate under consistent growth with positive returns.
But the Mercury’s Board of Directors realized the company was performing below its capacity. With the aim to find out key issues and hence strategies needed to accelerate the company growth, the Board of Directors instituted Bolt Consulting firm to carry out consultancy work for the company.
As a result, Bolt Consulting made numerous recommendations that can work well and turn around the current company position in the market. Hence, evidence shows that product leadership strategy will be the best strategy for the company.
Proposed High-Level Action Plan
Findings by Bolt Consulting show that product leadership strategy is the most viable strategic action the company can take if long-term growth is to be realized. In identifying product leadership strategic actions, key issues were factored that call for such strategic actions by the company:
Overemphasis on Corporate Strategy
The consultancy report indicated that Mercury International Company was concentrating in corporate strategy, and in the process, it was striving to do everything. These particular actions have resulted into the company lacking identifiable key strategic actions to pursue in order to maximize its returns.
Given the current times where economic resources are limited, it would be prudent for the company to pursue a specified strategy that will bring greater satisfaction to the consumers while at the same time increasing company returns. Product leadership strategy has the advantage in that the company will invest much in innovation strategies.
The current market research indicates that companies that invest in product and service innovation tend to have an upper edge as far as competition is concerned (Rainey, 2005). With greater product improvement and development, Mercury International Ltd will be responding timely and adequately to the changing market trends with ability to satisfy its global consumers more effectively.
The strategic objectives in accordance to this value proposition will include: outstanding performance, along dimensions such as speed, accuracy, size or power consumption, which appear to be superior as compared to other competitor’s products (Kaplan and Norton, 2004).
Need for improved Innovation in products and services
Product leadership strategy is largely rooted in product innovation, thus dwells more on research and development. Bolt Consultancy report found out that Mercury International Ltd, uses only 1.68% to 1.75% in terms of research and development. This shows how the company has under-invested in this vital area as far as market competition is concerned.
Mercury International Ltd, being an international company operates and serves a wide population and therefore satisfying the needs of such a population will need accelerated work of innovating satisfying products.
With regard to this the company will utilize R&D to make incremental changes and improvements in its products with aim to develop and create new products that have the capacity to perform better in the market (Sahaf, 2008). The objective of the company need to be of innovating products that provide customers with superior value and this will be achieved by using the company’s vast global multifunctional teams that are a precondition for innovation (Sahaf, 2008).
Need to grow the market share
Product leadership strategies aim to promote Mercury International Ltd to higher levels as a global leader in shoe market through product innovation strategies, company features and functionality of its products. The market report by Bolt Consulting indicated that there is a new developing market in terms of young people and celebrities.
Guided with such conviction the company is convinced that early adopters of such new products will be less sensitive to price instead will be motivated by functionality of the new products hence prospects are highly available. Given the company’s position in the market place (global) it is easy for the company to excel at anticipating customers’ needs and discovering new opportunities for superior products to be introduced in the market.
At the time, the company will greatly maintain an optimal balance among: fundamental research by creating new scientific and technological breakthroughs; these breakthroughs will be introduced through new product platforms; and lastly, the company will strive to enhance the existing platform products with incremental but still innovative derivative products (Kaplan and Norton, 2004).
Conclusion
Mercury International Ltd., as part of its strategic plan actions will adopt product leadership strategy with aim to foster product innovation for its global market. The current market dynamics dictate that the company needs to creatively respond and find solutions to the needs and expectations of its global customers together with that of the larger market.
Product leadership strategy is the best strategic plan for the company to pursue for a number of reasons: 1) from internal perspective the company prides itself in having abundant knowledgeable human resources hence enough skills to be utilized in research and development activities.
At the same time the company will benefit largely from vast experiences, capabilities, resources and prevailing technology available in the company; 2) from an external perspective, productive leadership strategy is necessary in order to meet customers and stakeholders needs, wants and expectations.
Strategy Focus
Product Leadership Strategy
With regard to market dynamism, it is prudent that to currently fit and obtain competitive advantage over other competitors, product innovation in terms of product innovation and functionality has become necessary.
Emphasizing these strategic objectives, the company is well equipped to reclaim its market position by investing and pursuing product innovation with particular keen intend on outstanding performance along dimensions of speed, accuracy, size and power of consumption.
Functional Area Impact
Supply Chain
Product Leadership strategy in the perspective of Mercury International Ltd is to ensure there is product differentiation in the market, which will be achieved through effective and market driven innovations. The ultimate aim of any strategy is to ensure maximum satisfaction on the part of the consumer and therefore supply of the product from the manufacturing or production point has to factor how well the consumer will get access to the product.
The company, through its global supply chain, will work to ensure the consumers access to the products is facilitated in a smooth way. The company will collaboratively identify and deliver value important to the ultimate consumer in the supply chain in manner that will be superior to that of competing supply chains.
Marketing
Modern market place exhibits profound dynamism and changing consumer preferences and tastes. As a result, product leadership strategy aims to enable the company to formulate strategies that have a tendency to be relevant and have customer-focused innovation approach with intention to suit customer preferences to the maximum.
Mercury International Ltd will largely invest in nurturing ideas and translating them into product concepts before vigorously marketing the products using appropriate marketing strategies that are efficient with consumers.
Administration
The activities of a company come to life with the interaction of people and systems. These interactions usually function within the realms of administration, management, marketing and financial capabilities. Within these interactive functional processes, people need to develop key competences that will aid the company in achieving its goals.
In developing key competences necessary to implement strategic goal and objectives, administration becomes central to the whole process. Therefore with this in mind the company will largely need to develop a competent administration manpower that will translate the company’s strategic goals in practible solutions. Therefore adoption of strategic actions will need sound administration as key driver for the company to realize effective and positive results.
New Product Development
In pursuing the product leadership strategy, it is evident that innovative product development will be the key to realization of the strategy objectives. The increasing globalization calls for multinational companies to embrace product and service innovation if they hope and aspire to remain relevant.
Again product development strategies adopted by the company should address the needs, wants and expectations of the consumers to the highest level.
To excel in this area and have an edge over other competing companies the company will largely utilize and pool necessary competences, improve in its organizational structure with regard to emphasis in research and development, improve its business processes and also create a conducive cultural environment that promotes innovative ideas that can be turned into competitive market products with ability to achieve sustainable profitability and global leadership.
References
Kaplan, R. S. and Norton, D. P. (2004). Strategy maps: converting intangible assets into tangible outcomes. NY, Harvard Business Press. Web.
Rainey, D. L. (2005). Product innovation: leading change through integrated product development. NY, Cambridge University Press. Web.
Sahaf, M. A. (2008). Strategic Marketing: Making Strategic Decisions for Strategic Advantage. New Delhi, Prentice-Hall of India. Web.