Strategic alternatives offer companies the opportunity to maintain competitive advantage. Mostly, companies can adopt strategic alternatives when faced with uncertainty within markets or industries. Therefore, the strategic alternative bundles offer flexibility in dynamic industries through key functions to influence operational practices.
Differentiation responds to a need for ensuring products and services offered are unique. Notably, companies can produce inimitable products that add value to the customer experience. Diversification is an element that can be employed to reduce the risks that a company is exposed since it involves providing new products and services to emerging or existent customer bases. Pricing strategies are applied when a company can reduce the cost of production to figures that are relatively lower than offered by competitors.
For strategic alternative bundles to achieve their intended purpose, a number of requirements have to be met. A company should identify factors disrupting operation efficiency and respond by employing resources that can address the limitations. The strategic alternative bundles should analyze variables that may not be considered within profitability ratio initiatives (Abraham, 2011). Market trends directly affect sales; therefore, strategic alternative bundles should address changing consumer preferences to ensure that company operations are aligned with the changes in the market.
Essentially, both internal and external business environments should be analyzed and incorporated into the strategic alternative bundle. Investigation of threats that competing companies are exposed to can offer opportunities for adopting effective mitigation strategies. Moreover, research on market opportunities offer approaches to capitalizing on emerging prospects.
Ultimately, the more the number of strategic alternative bundles adopted, the higher the probability of coordination challenges in pooling resources towards individual tasks. Naturally, cross-departmental projects require teamwork and effective communication in aligning operations with the operation; therefore all the criteria listed should be met to ensure that companies have a greater control of external and internal risks and opportunities.
- Abraham, S. C. (2011). Strategic Planning: A Practical Guide for Competitive Success. Bingley: Emerald Group Publishing Limited.