Strategic Choice and Evaluation
Complete 3 pages APA formatted article: Strategic Choice and Evaluation. This paper will look at alternatives Medtronic’s should consider realizing growth. The paper will assess the best value discipline, generic strategy, and grand strategy for the organization. The paper will conclude by recommending a combination of strategies the organization should put into practice.
The best value discipline Medtronic’s should consider to realize growth is customer intimacy. This means that Medtronic’s will concentrate on providing services and products required by a particular client and not what is required by the whole market. Organizations, which are customer-intimate, develop relationships with their clients and are not after one time dealings. They dedicate their selves in satisfying distinctive needs, which frequently only they, by virtue of their profound knowledge, and intimate relationship with clients acknowledge (Grant, 2008). Therefore, for Medtronic’s to realize growth, their suggestion to the clients should be to provide the best solution for them and offer all the assistance necessary so as to realize the best outcomes and at total minimum cost.
The best generic strategy to be employed by Medtronic’s should be the cost leadership strategy. Generic strategies illustrate the techniques of attaining competitive advantage. This explains the techniques employed to establish the upper hand that gets the organization the sale and takes it away from rivals in the sector. There are two ways Medtronic’s may realize this by utilizing the cost leadership strategy. One, Medtronic’s may enhance earnings by minimizing expenses while utilizing industry-average costs.
Two, Medtronic’s may augment market share by imposing reduced costs, while at the same time making a real profit on every service offered and of product sold because Medtronic’s will have decreased costs. One should bear in mind that cost leadership concerns lessening the cost to the organization of providing services and products. Also, it should be noted that the price or cost paid by the client is a distinct matter. The cost leadership strategy entails being the leader with regard to cost in the market or industry. Being among the lowest-cost producers is simply not sufficient as Medtronic’s will leave itself wide open to competition by other organizations who offer services and products at a lower cost and, consequently, may emasculate Medtronic’s prices and, therefore, hinder its capacity to realize growth. Therefore, Medtronic’s needs to have confidence in attaining and retaining the leader’s position prior to selecting the cost leadership strategy. Nonetheless, organizations that successfully realize the cost leadership strategy typically contain extremely adequate logistics, access to the funds required to invest in technology which will help lessen costs, and a reduced cost base, and a strategy of efficiently reducing costs beneath those of its rivals (Olsen, 2012).
The grand strategy that Medtronic’s should consider to realize growth is product development.