Business Strategic decision suggestion to the CEO

Document Type:Case Study

Subject Area:Business

Document 1

It has been rated the bestselling company online in the year 2016. The company also offers a variety of e-commerce services. Strategic decisions/suggestion using Porters Five Forces These forces determine how the competition will be in the market, profitability, and attractiveness of the market of the company. Attractiveness of Alibaba Company will determine the profit that is going to be gained. The Chief Executive Officer will have to make super strategic decision to keep the companies profile on high and attract more customers and thus building up of profit. And during the period that they will be adjusting to copy the new ways, the company will have made profits and enough time to research on new forms. • Differentiate yourself. Despite the fact that there are many similar brands and companies offering the same services, there has to be that slight difference that distinguishes service provision among the companies.

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This is by identifying the needs of the customers and majoring on the products that are mostly likable by customers. This can also be successes by offering the variety of products in that a customer can get what they require at the same place with ease. To scare these competitors off, As a CEO, applying product differentiation to create barriers by making the new entrants incur expenditure in that the new entrants must spend a lot of money to overcome this. The threat of substitution These majors on the products that exist in different companies and fulfill the same need. As a CEO one, you need to set up prices that will attract the customers the entire price will be lowered, but the company will sell more than the other companies thus reduce sells for the other companies.

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Bargaining power of buyers A company has to consider the buyers to be important when they can affect the prices. There are buyers that can exert control over the seller. The company should also introduce the cooperate customer service. This will call in for different products regarding quality that will attract people of different levels and classes of lives. This is estimated to increase the sales at some certain percentage and also surpass other companies that might not have adopted this strategy. Overview IKEA in India IKEA in India is divided into two, IKEA retail which has been in India for the past 30 years providing many different products to the worldwide stores of IKEA. it offers approximately 9000 products. It also helps to focus on the strengths, reduce the threats and maximize the advantages available in opportunities.

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Strengths of IKEA • The company has a brand name that places it in the good position in the global market and more so the Indian market. This has to be taken as the advantage of venturing into the market and making many sells as possible. • The democratic design also good quality at lower prices puts the company at its best on making many sales (Noe et al. The board of directors should put this into being in many of the goods offered, more so the most selling. • IKEA has always had advertisements that are limited and also simple promotional strategies. For the best service delivery, IKEA has to make efforts on improving its forms of making an advertisement. Opportunities IKEA should use its strengths to take advantage of the opportunities on the rise.

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It should also provide the most effective solutions for customers to support them recycle used goods. Ikea has some opportunities to take advantage on. IKEA Company has to deal with the following threats to its prosperity and consistency on the market. • Upcoming social trends are the major threats to IKEA India. This makes the customers to be afraid of trying new products. These advocates for consumers to be only one time buyers. • Basing on the fact that IKEA majors on furniture, there are many competitors arising and have checked into the markets. This will attract most of the families mostly during the holidays. Due to increasing usage of internet, the company should focus on making its advertisement online and more so this finds the younger generation that are the major consumers currently Overview of Lenovo Company in China Lenovo Company was started in the year 1984 and later incorporated in 1988 as Beijing legend computers.

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It was the top PC vendor between the year 1999, and later in 2003, it became the top PC producing company in the world and also third in the provision of smartphones. Apart from personal commuters, Lenovo also deals with selling of smartphones, TVs, and tablets. The company provides the best quality products that include apps, workstations, and storage (Liu 2016, 575). Apart from selling these computer and related devices, it should also offer it mobile maintenance services (Li, J. This is what most of the companies are running into. Lenovo has an upper hand to steal customers through this form because of the quality products it offers. The services also need to quality to maintain the customers. Recommendations For the company to maintain and also add more customers to its list, it should adopt the new technological advances that are coming up day to day.

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