The Glo-Bus application was a very challenging and intriguing exercise. Starting out in the simulation, our team was positioned well with a good strategy and several strengths in our first couple of years. Despite this strong start, we struggled to adapt to the changing market conditions and adapting our strategy accordingly. Ultimately, we gained several new insights that should help us each in our future strategy formation and execution efforts.
As a co-management team we quickly formulated our plan of attack. We decided to plan weekly phone conference with all the managers of Distinguished Images. We felt that this would be the most effective opportunity for our management team to talk through our strategies and collaborate on a plan of attack. By doing this, we were able to voice our intentions for the company and give our input as individuals to reach toward the vision of the company as the weeks progressed. We also adopted our company vision statement:
“Distinguished Imaging strives to be the global market leader in reliable and technologically advanced digital cameras. We are focused on meeting our customer’s needs for advanced technology products and seek to be the 1st choice in digital imaging technology.” By having our vision statement early on, we were working to “be unified into a coordinated, cohesive effort” (Thompson, Strickland & Gamble, 2008, p.15).
From a strategic perspective, Distinguished Images initially sought to offer quality products at a value price point. Our goal was to use the “best- cost provider” strategy where we would provide good-to-excellent product qualities at a low price point (Thompson, Strickland and Gamble, 2008). Our goal was offer a quality entry-level camera at a low price point and a higher quality multi feature camera at a value price point. Later we would adjust this strategy to be a combination of “low-cost” and a “focused market niche differentiation” strategy.
Distinguished Images then began to collaborate in order to form our initial action plan. We saw the quickest way to achieve our best-cost provider strategy this goal was to invest in a high quality workforce and focus on employee productivity. We sought to pay our employees at the high end of the pay scale and reward them in exchange for reaching a higher level of productivity. Higher productivity would improve product production and quality expecting to contribute to a lower warranty claim rates. As a result of this logic, for the three years we did not invest a lot in our warranty periods as we expected the quality of our products maintain lower warranty claims. In hindsight, we may have missed a great opportunity to offer an extensive warranty programs with a lower claim rate as a result of our quality products. Additionally, we implemented a corporate citizenship program by increasing our employee conditions and community efforts in a year by year basis.
As part of our initial product strategy, we sought to first focus on offering a strong number of camera models and invested initially in developing the features of our entry level cameras. We believed that this would help us gain a strong market share. We chose not enter our multi- feature cameras in the Asian market and instead focus our efforts on markets where we had greater market share. We expected that would help prevent spreading our resources to thin. In hindsight, we may have benefited from investing in the multi-feature cameras more aggressively up front and fully participating in the Asian market from the start. We could have leveraged the development needs over a few years to help us produce a high quality multi-feature camera with strong profit margins. Weaknesses
In our second year, we made strides in creating a better differentiated, stronger quality multi-feature camera. However, we also lost ground in...