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Formulating a Competitive Strategy : A proposal for a Micro Sized Enterprise in Logistics and Taxi Business

Kokeyo, Nasser (2020)

 
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Masters in Business Informatics Thesis (851.3Kt)
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Kokeyo, Nasser
2020
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020120426127
Tiivistelmä
In an increasingly changing business environment, there is the critical need for firms to create and sustain a competitive edge in the market to realize profitability and promote long term growth.This study was necessitated by the need to formulate a competitive strategy proposal for a small sized company within the logistics industry in the Helsinki Area.The company is struggling as a result of increased competition occasioned by deregulation and the ever changing business models.There is an urgent need for a well formulated and executed strategy to drive growth and provide long term direction for the firm.Many small sized organizations struggle to create effective strategies to compete in markets dominated by the large companies.
The objective of the study is to formulate a competitive strategy for the case company through the use of applied research methodology. In order to achieve this objective, there is the use of a qualitative method of data collection through semi-structured interviews of various stakeholders from the chosen case company. Through the use of the Current State Analysis, the company’s current strategy’s strengths and weaknesses are identified to build a proposal with the aim of creating and delivering the new competitive strategy. Thereafter, the first proposal is validated in a workshop setting with other company stakeholders to develop it further or make the necessary changes and make the final recommendations to the management.The study, based on the findings of the Current State Analysis, will be on the various competitive strategies especially the differentiation strategy, an analysis of the industry structure using the Porter’s Five Forces Framework, execution and implementation of the chosen strategy to effectively highlight the process of strategy formulation until the implementation to achieve the desired results. From these concepts and best practices, the research work formulates the competitive strategy, namely, the differentiation strategy to be used as a strategic tool to achieve better results.
The outcome of this study is a proposal that recommends to the management of the case company, a new competitive strategy to use in its operations as a strategic tool towards achieving growth and profitability. The main findings used to create the final proposal is that a differentiation strategy could be the most sustainable option to choose from as compared to the price leadership or the focus strategy .Differentiating factors such as service and operational excellence, creating long lasting customer relationships and an innovative customer experience in the market are highlighted as the main differentiating factors especially in the service industry.
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