Strategic Management for Outsourcing and Vertical Integration

Question: Discuss about theStrategic Management for Outsourcing and Vertical Integration. Answer: The strategic actions which are taken to strengthen the competitive approach of the company or to complement and maximize the overall strategy are known as the supplemental strategies. In certain times, the company also becomes offensive in improving the market position or performance and thus this does not depend on the competitive strategy of the firm. There are various measures to strengthen the strategy of the company such as outsourcing, vertical integration, defensive and offensive moves. The corporate strategies which are taken by the company o pursue the changes within the industry are known as offensive competitive strategy. There are some companies which actively engage in acquiring the other firms to pursue the changes by using various offensive competitive strategies. These companies make huge investment in research and development and thus they try to stay ahead in competition. The companies that adopt offensive business strategies also take proactive decisions or aggressive actions in the market. This actions aim at the competitors and thus they try to secure the market share without focusing on any existing competition. An example of offensive business strategy is direct head to head competition. In this type of competition, it is advantageous for the firm to sell the product which is similar to the competitors product at a much lower price or there may be some quality differences between the two products. Magic Pixel can also adapt the various offensive strategies which are based on comprehensive and excellent name in high definition cameras and have advanced technology or are well known and of superior quality in supplemental strategies. In such a case, the company is able to become the first market introducer in the next generation digital cameras due to huge investment in research and development, innovative technology or leading technical support team. The continuous innovation of the solutions in the digital camera industry is included in the offensive strategy. Magic Pixel is also attacking the various competitors such as Creative Title, The Fronteir and Gumrah with advanced and improved products to prevent the threats and slow down the market share. With the ongoing introduction of the improved and new products, the rivals of Magic Pixel are put under high pressure when launching any new product. Therefore, it can be said that Magic Pixel is a leading firm in the digital camera industry and the company is in an advantageous position to strengthen the brand loyalty and position. By considering various developments in the manufacturing of digital cameras or any other complementary products, the company is able to set technical standards for the new technology or price.