The exit of a monopoly firm marked a new milestone in the sensor industry. The monopoly powers of the sensor company meant that there was no market share since it was the only sole player in the industry. However, the government realized that the monopolized firm was not effectively satisfying all the customer needs. This is the main reason for its split into distinct competitive companies. Furthermore, the government split the monopoly into six different companies where each one of them was mandated to serve a given customer need. This move was seen as the only strategy that will allow for industry to efficiently serve customers. Currently, the companies boast of an equal market share. Also, the consumers have the freedom to choose from a variety of products. This competitive aspect in the industry has compelled companies to come up with diverse tailor-made products to satisfy consumer needs. Therefore, the post-monopoly era meant that financial management and marketing strategies are some of the concepts that a company needs to consider in order to remain competitive in the industry. For instance, a new company may be disadvantaged if rival firms decide to better their products and lower prices.
The post-monopoly era is both an opportunity and a threat. This is because the industry is currently composed of six companies who have an equal market share. The six companies are different in terms of the products their offer which presents the opportunity for each one of them to grow in the industry. For instance, each company has the ability to satisfy its own target customer base which makes the whole process profitable. However, this competitiveness is a threat since privatization is a new concept in this industry. In a competitive market, customers have a high bargaining power which makes the whole process a threat to a private firm (Forsyth & Anastasia, 2016). Furthermore, product differentiation is both a threat and an opportunity (Porter & Heppelmann, 2014). The ability of the company to produce products that are different eclipses the opportunity that the company is accorded in the process. However, the inability of a company to make the products more different highlights the threat it faces in a competitive market. These are some of the challenges that a company is likely to face in the industry. Therefore, it is important for the company to evaluate and understand the key concepts in a competitive environment. Generally, the company’s service delivery is dictated by how much the company is aware of the external forces in a competitive environment.
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According to Pettus, product uniqueness and cost are the major factors that dictate the competitive advantage of a company in the industry (Pettus, 2014). It is no coincidence that the concepts elicited by Pettus are not unique from the six concepts enumerated in the “team member guide.” For instance, each strategic concept elicited has a different mission. Therefore, the strategy emulated by any company will be based on its core mission in service delivery. However, this approach is flexible since different companies are dictated by different values and beliefs. It is not a must for a company to consider the above stipulated business strategy. Therefore, this assertion makes it imperative for each company to evaluate the consumer needs before getting involved in service delivery. Due to the fact that product differentiation is a new concept in the industry, the cost leader strategy may be useful. This is because the primary concern of this company is to offer quality and lowly priced products to its customers. However, the future strategies implemented by the company will be determined by its progress in the industry.
References
Forsyth, B., & Anastasia, C. (2016). The Business Simulation Paradigm: Tracking Effectiveness in MBA Programs. Journal of Management Policy & Practice , 17 (2).
Pettus, M. L. (2014). Strategic Management for the Capstone Business Simulation® and Comp-XM® and Global DNA®.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard business review , 92 (11), 64-88.
