Technology Competitive Crush
Rapid changes in the technological in hardware, software and the equipment in the wide market were caused many variations of brand of personal computer in the market. This will lead supply exceed the demand and at the same time it will affect the price of the personal computers. These leads the competitor compete among themselves by producing more up to date product in order to gain the market.
Company Innovation Focus on Technology
Due to the changes of global technology, the company should established Research and Development Department to produce the product that can compete globally and produce up to date products with the competitive price.
2) Do you think it was wise of Wizard Bhd to dispose its core business and acquire the retailers and manufacturer of pharmaceutical products? Discuss with 3 reasons.
No need to dispose their core business acquires the retailers and manufacturer of pharmaceutical products. The reason:-
· Wizard Bhd established for 20th years, where as they are capable and having an experience for the competition among the competitor. The solution of this problem, Wizard should take the initiative the review the business strategy that concerned the corporate level strategy in which is involves the decision about the business to grow, resources allocation among the business amount, Wizard also need to take advantage of synergies among the business and diversified the products of firms.
· Wizard has a potential successful business strategy and became innovative fast mover in the business. The best step should be taken, Wizard Bhd should drawback top down approach whereby Wizard Bhd more responsive for rapidly changing competitive environment. Wizard also should take initiative drawback strategy planning on accurate forecasting and does not take its as unexpected events.
· Wizard also successful acquired more than 50% of share in The Computer Mart. It shown that Wizard having a power on the company that they invested. From the share acquired, Wizard becomes a subsidiary of that company. In order to compete with the clone computer, Wizard should take initiatives to implement the high level of conceptual term and priority. To produce the effectiveness implementation, Wizard should understand functional level of the organization. The strategy should be translated into specific policies for functional areas such as Marketing, Human Resources, Research and Development, Procurement, Information Systems. By developing functional strategy help Wizard to identify the required resources and made a necessary changes.
3) Which type of the multidivisional structure would be suitable for Wizard Bhd increasing the diversification:
I think, Wizard should choose Mobile Communication in the diversified business.
The reasons are:-
- To grap market opportunity, due to rapid changes in the technologies, Wizard should the opportunity to participate unified communication where as the system allow the users to access the communication from any phone @ PC .So the impact of this, will increase sales of phone and at the same time also increase sales of computer.
- To improve communication and business strategy, when diversified the products from the computer to mobile communication, allow Wizard to produce more innovative product to enhancement of IT rapid changes. A mobile communication product becomes a complement product.
- No need to set up new strategy for the company. It is because Mobile Communication business has a same line business that focusing on the up to date hi tech equipment.
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