Question

Jordan's mobile communications device company is conducting an industry analysis as it considers new strategies for its five-year strategic plan. The analysis reveals that recent government deregulation has reduced the barriers to entry and several start-ups are entering the industry. Which of these strategies could be a part of the plan to counteract this?
a. Expand into a different industry, serving a different set of customers and their needs.
b. Acquire the company's biggest supplier, bringing the capability of manufacturing critical component parts into the business structure.
c. Utilize an intensive advertising campaign to build brand loyalty.
d. Grow industry demand by educating consumers about the features and benefits of products in the mobile communications device industry.

Answer 1

Answer: Jordan's mobile communications device company is conducting an industry analysis as it considers new strategies for its five-year strategic plan. The analysis reveals that recent government deregulation has reduced the barriers to entry and several start-ups are entering the industry. The solution  that could be a part of the the plan to counteract is to acquire the company's biggest supplier, bringing the capability of manufacturing critical component parts into the business structure.

Explanation:  The Strategic Plan of a company serves to establish the objectives to be achieved and the methods of action to achieve them .

It includes the meeting of the team of directors of the company and the ideas are written down so that the whole team finds out about the strategy to follow and the objectives, generally up to the following 5 years.

Some of the point to be clarify are for example :

• Opportunities
• Threats
• Economy
• Technology
• Size of the market
• Evolution of the market

Each company must see the best option in any case to achieve the goals that have been proposal on the strategic plan .

Is important to know the kind of competitors and suppliers that are in the market in order to face  the difficulties  on the most outstanding way that company has.