Corporate competition is a common aspect at a global scale. In other words, the game serves as the center of market operations and helps in fostering innovation and creativity. Both innovation and creativity aim at creating wealth, thus reducing poverty. It is worth noting that competition plays a very critical role in the development of corporate markets internationally. In a nutshell, market competitions are right, not only to the consumers but also for the growth of the business. The economy of most countries uses race from different companies and enterprises as their basis. In situations of healthy business competition, consumers tend to receive the best quality of goods and services. In individual countries, some corporate laws and policies tend to encourage industries and enterprises to compete so that both the business and the consumers benefit. All companies and industries should ensure that they adequately fit into the system, by adopting appropriate measures in the course of their business operations. Failure to do this results to defeat by other companies in the market, and thus resulting in increased losses and lack of clients.
In this case, CompTV, S.A is facing some competition issues, whereby another company manufacturing similar products is located just a few kilometers from where they are. The management needs to make immediate decisions, to face competition within this market situation. Due to this economic and competitive scenario, the companys management needs to come up with strategic changes that will help the company overcome the competition. All the relevant stakeholders must be incorporated when developing the proposed strategic changes. There are a couple of strategies that the company can adopt in this situation, but first, the manning agent must choose the most feasible and applicable one.
The most reasonable strategy, in this case, is adopting an improved logistics system in their operations. Considerations in logistics always play a strategic role in business operations worldwide. The success of any business entails both the management of inventory and transportation. Strategies that are logistics- oriented tend to help huge companies deal with corporate competition. This move will ensure that this firm subcontracts the shipping and transportation of its products directly to the clients. This strategy has an increasing number of the alternative that helps meet the standards of costs and services. The company must choose an appropriate logistics operator or even use their transport system if they have the capacity. It will result in more of the products being shipped to clients in distant places, thus covering areas that the competitor is out of reach. In turn, the company will record increased profits, and consequently, a growth of the business. The logistics operator will manage all the orders as dispatched from the headquarters to all the respective clients. Logistics and inventory management is continually being used by most big companies, with the aim of topping in the corporate field. However, it is worth noting that this strategy is associated with increased cost. Logistics operators are quite expensive and thus, an increase in the cost to the company. Similarly, if they choose to use their means of transport, there will be an increase in price, for the servicing and maintenance of the trucks. This strategic change will also have a significant difference in the supply chain as the management will only dispatch the products, whereas the logistics operators deal with the clients at the receiving end.
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