Strategies For Fisher And Paykel Electronics †MyAssignmenthelp.com

Question: Discuss about the Strategies For Fisher And Paykel Electronics. Answer: One of the suitable strategies for Fisher and Paykel electronics will be the growth strategy. Initiation of the growth strategy will help the organization to increase the market share and market presence in the global market (Hitt, Ireland Hoskisson, 2012). Thus, the business potentiality will get increased for them along with reduction in the business risk. In this case implementation of the Ansoffs matrix will be helpful. There are four models being stated in this matrix that can enhance the growth strategy of the business. The first model is the market penetration. This model will help them to penetrate in their existing market of New Zealand with their existing products. They can introduce more variants of their existing products to attract more customer segments. The next model is the market development. This refers to the entering in the new market with their existing products. The product portfolio of Fisher and Paykel will be new in other market apart from their operational area. Thus, it will be a huge opportunity for them. The next model is the product development (Buyukozkan Arsenyan, 2012). In this step, the organization can develop new products for their existing market. Thus, Fisher and Paykel can develop new products for their existing market, which will meet the latest market requirement effectively. The last model is the diversification. This will enable them to enter in a new market with new products. It will help them to reduce the business risk of them associated in a single market. Retrenchment strategy Another strategic alternative will be in the line of retrenchment. This is due to the reason that, retrenchment and cost control is important for the organization in reducing the production cost. The less will be the production cost, the more will be the profitability of the organization. One of the most effective strategic alternatives will be the outsourcing. (Schniderjans, Schniderjans Schniderjans, 2015) This will enable the organization to outsource their manufacturing facility in the developing countries to reduce the production as well as cost of human resources. This will also delegate the associated risk with the manufacturing facility to the third party vendor. Developing countries such as India and China are having less employee cost and other cost of raw materials. Thus, outsourcing the production facility to these countries will enable Fisher and Paykel to offer their products in less cost to their customers, which will further enhance their attractiveness among the cus tomers. Recommended strategy Among the above discussed two strategies, the recommended strategy will be the outsourcing strategy. This is due to the reason that, the business risk is less involved with the strategy of outsourcing compared to the strategy of market growth. In the case of the implementation of the Ansoffs matrix, there is huge risk and cost involved in designing new products and entering in the new market. Moreover, in the case of the diversification, there is no guarantee that entering in the new market with the new products will fetch positive outcome (Song, Ming Xu, 2013). On the other hand, initiation of the policy of outsourcing will have fewer risks associated. This is due to the reason that, Fisher and Paykel will have to pay for the amount to be outsourced. Moreover, it will enable them to offer their products to the customers in lower price. Thus, they can gain competitive advantages in the market (Schwarz, 2014). In addition, offering the products in lower price will automatically help them to increase their market share. Thus, there will be no need of initiation of additional strategies for growth. With the reduction in the production cost, they will have more capital in hand for further research and development and thus it will enhance their future business potentiality. References Bykzkan, G., Arsenyan, J. (2012). Collaborative product development: a literature overview.Production Planning Control,23(1), 47-66. Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2012).Strategic management cases: competitiveness and globalization. Cengage Learning. Schniederjans, M. J., Schniederjans, A. M., Schniederjans, D. G. (2015).Outsourcing and insourcing in an international context. Schwarz, C. (2014). Toward an understanding of the nature and conceptualization of outsourcing success.Information Management,51(1), 152-164. Song, W., Ming, X., Xu, Z. (2013). Risk evaluation of customer integration in new product development under uncertainty.Computers Industrial Engineering,65(3), 402-412.