Strategic Growth and Issues Associated with the Strategic Direction

The modern global market provides a lot of opportunities for the companies’ development. To success within the market, it is necessary to focus on the definite aspects of the companies’ strategic direction. It is possible to refer to many corporate strategies used to increase the company’s potential within the market.Advertising We will write a custom essay sample on Strategic Growth and Issues Associated with the Strategic Direction specifically for you for only $16.05 $11/page Learn More However, there are also concerns and barriers which can prevent the firm from the successful development and growth according to the international standards. From this point, it is necessary to determine four main issues the focus on which is important for developing the effective company’s strategic direction. Thus, the increase of the company’s potential is based on the effectiveness of the new product introduction. To guarantee the success of the process, it is important to pay attention to the patent and design issues in order to protect the usage of innovation by the company. The introduction of the new product can contribute to the company’s global presence with references to the expansion into new markets. To meet to the tendencies of the global market, it is necessary to respond to the culture and gender issues developing the approaches to recruitment. Thus, the issues of the new product introduction, patent and design protection, the expansion of the global market participation, and specifics of the culture and gender questions are closely connected with each other, and they can affect the company’s development with references to the strategic direction significantly. The global business environment is more competitive today in comparison with the situation typical for decades ago. Much attention is paid to the quality and effectiveness of the strategies proposed to develop firms within th e market. From this perspective, a strategic direction used by the company is its way to achieve significant success in industry. However, the implementation of effective strategies is often associated with resolving the problematic issues and concerns. Many approaches to strategic direction with references to the concept of strategic importance depend on gaining competitive advantage (Chaiprasit 2009).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To stay competitive, it is important not only to support and promote the existing brands but also to introduce new products responding to the customers’ expectations. Introduction of a New Product The introduction of a new product is the guarantee of stimulating the customers’ interest to the brand. Nevertheless, companies should focus on such issues as the market potential for introducing a new product, the competitiveness of the market, the costs of the product’s development, technological and innovation issues, the time limits for introduction, and all the associated risks. To introduce a new product, it is necessary to orient to the target customers as well as to the potential customers who can become interested in a product proposed. In spite of the fact there are a lot of risks connected with the possible success of the product within the market, the introduction can be realised effectively basing on responding to the above-mentioned factors. To introduce a new product, the company focuses on usage of new resources and on following new behaviours in order to achieve their higher results. The process of the product’s introduction is often time consuming, it is associated with spending a lot of costs (Bloodgood McFarland 2004). However, the benefits of the process are also great, and this strategy helps firms to improve the performance within the definite market or to enter a new market, a nd contribute to the company’s global performance. The company can reduce the risk of failure during the process of the new product introduction focusing on balancing the costs and usage of technologies after the proper analysis of the market, tendencies in its development, customers’ needs and expectations (Wan Hoskisson 2003). From this point, the strategy should be directed toward the development of the qualitatively new product which differs much from the existing proposals within the industry.Advertising We will write a custom essay sample on Strategic Growth and Issues Associated with the Strategic Direction specifically for you for only $16.05 $11/page Learn More Patent and Design Policies If the company’s global presence as the strategic direction depends on the introduction of the new product within the market with references to the expansion of the market participation, it is also necessary to concentrate on the question of the patent and design protection. The initiation costs should be connected with the costs for the necessary technological research and development of the innovative approach to the product. The introduction of the new product is usually associated with utilising the specific innovations. From this point, the new product should be protected with the help of patent and design laws. The introduction of the new product often means the introduction of the exclusive product within the market because such a strategy guarantees the increase of the customers’ interest to the product and company’s activities. To protect the exclusiveness of the product and prevent the other firms from imitating the effective aspects of product, it is necessary to develop the effective strategy toward using the patent and design laws. The evaluation of the product’s quality and practicality is closely connected with the development of the effective patent which can protect the companyâ €™s innovation and contribute to its development. For instance, the activities of the VTL Group and its success with customers are affected by the focus on innovation and modern technologies with references to the protection of the company’s intellectual property. The strategy used by the company in relation to the patent and design protection can be discussed as effective when it involves business operations significantly (Hill Jones 2009). Thus, the development of the new product can influence the role of competitors within the market and contribute to the company’s taking the higher positions within the industry. Global Presence The next important concern is the problem of expansion into new markets improving the global presence and basing on the introduction of the new product. The expansion into new markets is an important step for the company which requires following the effective strategy. The main components of the strategic direction connected with the im provement of the global presence and expansion into new markets are the evaluation of the market’s potential, its attractiveness, the competitors’ role, and the barriers for entry. To propose the company’s new product or developed brand within the global market, the firm is responsible for identifying the most important markets for entry.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The process of entering the new market can be prolonged and challengeable (Mas-Ruiz, Nicolau-Gonzalbez, Ruiz-Moreno 2002). Operating the examples of such firms as Toyota or Nissan, it is necessary to pay attention to the fact that the set of realistic time limits is necessary to plan the effective strategy and respond to the main issues. Developing the introduction of the new product depending on the expansion into new markets, the company aims to follow the market diversification strategy which can contribute to the company’s global presence if the company is able to overcome the internal and external barriers. The company’s entry into the new markets is associated with focusing on exporting the products which can respond to the customers’ needs and expectations globally (Palpacuer Parisotto 2003). It is also important to take into account the possible instability of markets in order to be ready to change the strategic approach. Much attention should be paid to the firm’s flexibility as the significant aspect to operate within the competitive global market (Harris 2002). The external expansion can be discussed as successful when the company’s profits increase with references to using new markets and acting according to the trends within the global market. From this perspective, the company should refer to the strategic drivers in order to promote the competitive advantage. The risks can be overcome when all the possible barriers and challenges are determined before the strategy’s implementation. That is why, the evaluation of internal and external environments is important to develop the most effective approaches to the strategy’s implementation (Palpacuer 2006). Thus, global presence and performance depend on the ability of the company to meet the global tendencies and develop the product meeting the requirements of the potential customers which should be of higher quality and practicality. Culture and Gende r Issues One more concern which should be discussed with references to the strategic direction is the role of culture and gender in expansion into the new markets. Researchers focus on the idea that today the participation of women in strategic management depend on the principles of the gender-egalitarian approach with references to the particular features of different cultures (Brandl, Mayrhofer, Reichel 2007). However, there are also cultures in which the participation of women in the business development is not actively supported. From this point, it is important to pay attention to the cultural peculiarities of the regions where the company intends to participate in the market because many Asian cultures do not share the idea of the gender equality in business world (Ndubisi 2005). As a result, the business communication between companies and departments can be complicated with references to the cultural traditions and gender issues. Critical and Personal Reflection The Board o f Directors should focus on such issues as the new product introduction, patent and design protection, expansion into new markets, and culture and gender issues because these points are components of the company’s strategic development with its focusing on improvement and progress. Thus, the above-mentioned aspects can be discussed as the issues of strategic importance. It is necessary to examine these factors in their connection because they affect the firm’s development complexly. As a result, the introduction of the new product based on the usage of innovative technologies is almost impossible without the development of the effective patent and design policy. The development of the new product introduction strategy is the significant factor to enter the new markets and operate there successfully following the global trends and responding to the cultural peculiarities. I am inclined to support the opinion that the development of the more effective strategic direction should be based on discussing the mentioned factors to contribute to increasing the company’s competitive advantage. Thus, the strategic growth is closely connected with the effective strategic direction. To be able to overcome all the possible barriers and issues and respond to developing concerns, the company should evaluate not only the internal resources and potential but also the external markets and industry’s competitors in order to develop the most effective strategy. References Bloodgood, J, McFarland, R 2004, ‘New product innovation’, Journal of Business and Entrepreneurship, vol. 16 no. 2, pp. 23-30. Brandl, J, Mayrhofer, W, Reichel, A 2007, ‘Gender-egalitarian culture and differences in strategic integration among women and men in HR director positions’, Management Research News, vol. 30 no. 9, pp. 634-645. Chaiprasit, S 2009, ‘Strategic direction, competencies and going global on global performance and development in Thai firms’, The Business Review, vol. 13, no. 1, pp. 142-148. Harris, P 2002, ‘European challenge: developing global organizations’, European Business Reviews, vol. 14 no. 6, pp. 416-425. Hill, C, Jones, G 2009, Strategic management theory: An integrated approach, Cengage Learning, USA. Mas-Ruiz, F, Nicolau-Gonzalbez, J, Ruiz-Moreno, F 2002, ‘Foreign expansion strategy and performance’, International Marketing Review, vol. 19 no. 4, pp. 348-360. Ndubisi, N 2005, ‘Gender differences in the use and antecedents of use of strategic-level systems’, Journal of Business and Entrepreneurship, vol. 17 no. 2, pp. 114-121. Palpacuer, F 2006, ‘Globalization and corporate governance: issues for management researchers’, Society and Business Review, vol. 1 no. 1, pp. 45-61. Palpacuer, F, Parisotto, A 2003, ‘Global production and local jobs: can global production networks be used as levers for local development?’, Global Networ ks: A Journal of Transnational Affairs, vol. 3 no. 2, pp. 97-120. Wan, W, Hoskisson R 2003, ‘Home country environments, corporate diversification strategies, and firm performance’, Academy of Management Journal, vol. 46 no. 1, pp. 27-45. This essay on Strategic Growth and Issues Associated with the Strategic Direction was written and submitted by user Guillermo Y. to help you with your own studies. 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