Increase of the Market Share





Increase of the Market Share

Porter’s Generic Strategies

Porter’s generic strategies encompass various techniques that assist commercial organizations in acquiring a competitive advantage over their opponents in the business environment. These approaches include cost leadership, differentiation, and the focus strategy. Based on an evaluation of Guajilote Cooperativo Forestal located in Honduras, these business mechanisms are effective in increasing the market share of a corporation. For instance, in terms of the cost leadership strategies, reduction of the operational costs in this company will be useful in increasing its returns. Additionally, the management of Guajilote should reduce the prices of the products by providing various quantities to customers in order to satisfy the needs of the targeted market segment, in addition to increasing the market share of the corporation. Use of other techniques such as competent logistics components and acquisition of significant capital to execute chief proceedings within the company will also provide a low cost foundation that is in accordance with the elements of the cost leadership strategy.

Additionally, in order to attain a competitive advantage over other participants in the wood trade, Guajilote should consider components of the differentiation strategy. To start with, it is essential for the managerial team to conduct an all-inclusive research program aimed at identifying the needs of the targeted market segments as well as trends that may alter characteristics of the market. Additionally, this will be useful in identification of strategies to execute promotion activities effectively. Likewise, use of innovations in production, sales, and marketing departments will enable the provision of quality products and services to the market segments. These developments supervised by the management of Guajilote should encompass educational programs aimed at enlightening the general population about the benefits of the company’s commodities. The focus strategy is also a constituent of the Porter’s generic strategies useful in expanding the proceedings of Guajilote Company. This involves the identification of a niche market. For example, in wood-related trade, it is essential for the administration of Guajilote to shape a particular market segment based on its ability to satisfy the needs of customers within this category.

Sustainability of Resources and Capabilities

Guajilote is a company, which deals with the sale of various wood products. Accordingly, the corporation relies on the natural environment for its raw materials. For instance, one of its leading brands is the mahogany, which is a hardwood obtained from certain geological zones of the world. For this reason, acquiring consistency in the provision of these wood products to the niche market may be difficult due to the alteration of climatic conditions that influence the growth of the trees. Furthermore, the rate of growth of these natural resources is lower than the acquisition of the commodities through deforestation. Consequently, the management of this company ought to implement a strategic plan that promotes environmental conservation as a way of counteracting the deforestation actions used to obtain raw materials for its production department. Likewise, its capabilities to satisfy the needs of the targeted market segment are a crucial aspect that requires managerial expertise. The supervisors in different departments such as the production, sales, and marketing subdivisions should formulate and execute a practical strategic plan that enhances these capacities.

McKinsey Matrix

The McKinsey matrix encompasses quantifiable criteria regarding commercial attractiveness and effectiveness. In terms of industry attractiveness, various influential forces that affect the market operations are part of the matrix. In this case study, the growth rate and size of the targeted market segment are essential in increasing the returns of the corporation. For this reason, the management should select a niche market of reasonable size with a high growth rate with reference to its capacity to attain customer satisfaction. Moreover, identification of significant   macro-environmental factors through the PEST analysis scheme is essential in the recognition of business opportunities in the international setting. This provides increased proceeds and a competitive advantage to Guajilote. Accordingly, the market share of the company is bound to increase significantly.

With respect to the strength of the business unit, the administration of Guajilote should conduct detailed research activities in order to identify the current trends in the market as a technique of increasing its market share and competitive advantage. They should also expand the distribution channels with the main intent of enhancing the accessibility of their products by the targeted customers. Furthermore, increasing the production capacity of the corporation will be essential in augmenting its market share, competitive advantage, and overall proceeds. Likewise, since the strength of the company is quantifiable in terms of the impact of its proceedings in the selected market segment, the administrators of the firm should calculate their returns in relation to the operational expansion of similar corporations established in the region. Incorporation of these strategies will not only enable the administration of Guajilote to increase its competitive advantage over other participants in the market, but it will also augment the market share of the company. For this reason, formulating a practical strategic plan for this company should include numerous influential factors in the internal and external market environments.

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