SMART strategies are paramount in attaining success in all oragnization. Generally, successful strategies are usually simple, measurable, attainable, realistic, and timely. With this in mind, I will formulate strategies that are both attainable and suitable to my market. The strategies that I will develop in order to have a competitive edge are shown below.
High Quality and High-Performance Sensors
I will introduce high-quality and high-performance sensors that will be suitable to use in various products. In addition, these sensors will require little modifications in order to meet the unique needs of customers, which will make them adaptable to each market segment. The need for little modifications will ensure these sensors can be customized for each market segments. The research and development department will be used to identify parts of the sensor and packaging material that are suitable for each market.
Research and Development (R&D)
Through R&D, I will develop high quality but affordable products. Through research, I will be able to manufacture high-quality products using high-grade materials and software by harnessing on the minds of the most talented in the industry. It also enables an organization to analyze the market and develop products that suit each market segment, in terms of performance, price, and quality. In order to achieve this strategy, I will develop a research and development department that will advise on the products to deliver, as well as the prices and on how to react to market changes.
I will use a customer-based marketing tactic in order to arouse the interest of potential buyers. To achieve this goal, the marketing will inform current and future clients on the available products as well as those under developments. Moreover, I will have a platform and interface that will enable individuals to interact with these products. Since the marketing will be specific to each customer needs, I will be able to know the specific products to market on each market segment by using the information from the research department. In general, I will market high quality and expensive products in high-end markets. On the contrary, I will market cheap products in low-end markets. I will also ensure that these commodities meet the unique needs of these markets.
The strategy on production will be developing high quality but affordable products. This strategy will enable me to tap on the high end and lucrative market, while still maintain the grip that the business has on the traditional and low-end market. Ordinarily, the high-end markets have few customers while low-end market segment has a lot of customers. To achieve this objective, I will increase the inventory gradually to meet the demand in all the market segments. I will also involve the research and development team in order to know the type of products to develop for each market.
The strategy on finance will be ensuring that the business uses the cheapest cost of finance for its operations. The strategy on finance will be the use of lowest cost of finance and allocate adequate reserves for emergencies. To achieve this goal, the finance team will be used to determine the lowest cost of financing using the weighted average cost of capital (WACC). Generally, shareholders raised capital through a public offering, bonds, and loans will be considered in the WACC In addition, the team will be advised to take cautionary measures in order to ensure that the company has enough funds to keep as reserves.
High End and High-Quality Performance Products
These products will be targeted at a specific market and they will aim at increasing the market size of the company in these market segments. Accordingly, the sales, volume of production, and cost of production will be important indicators of the company’s sales of high-quality and high-performance products. This assessment will compare the change in this variable between the time when the high-end and high-quality products and their current performance.
Research and Development
Generally, the purpose of research and development will be to minimize the cost of production as well as to come up with innovative, unique, and user-demanded products. In order to assess this strategy, we will check on the number of innovations developed, different tactics that have been implemented to minimize the cost of business as well as to attract new customers. Finally, I will measure the increase in the demand for the company’ products by evaluating the changes in sales.
The primary objective of marketing will be to increase the share that the business controls in all market segments. In order to assess the success of marketing strategies, I will measure if there has been an increase in the size of the market that the business controls. In addition, I will also measure if there has been an increase or decrease in the revenue earned from each market segment by comparing the past performance of the current ones.
Production: The aim of production will be to enable the company to enter into the lucrative high-end market while still maintain its grip on its traditional and low-end market. In order to assess the performance of this strategy, I will measure if there has been an increase in revenue earned by the business since it started producing high-end products. In addition, I will measure if there has been an increase in the company’s share of all the market segments.
The strategies on finance will aim at ensuring that the business access finances for its operations at the least cost, while still minimizing its exposure from sudden increases in the cost of finance. To assess this strategy, I will compare the WACC of finance of the business with that of the best in the industry. In addition, I will also check if there is a better alternative for accessing finance that the business may use in future.