Generic, Grand & Specific Strategies for Your Individual Project
A strategy is a statement that will be used to achieve long-term objectives. Strategy is about two things, deciding where you want your business to go, and deciding how to get there. For this study we will look generic strategy, grand and specific strategies and how they are likely to be applied to help the Sikorsky Support Services (SSSI) attain its long time objectives based on competitive advantage, the object of most corporate strategy.
SSSI is an organization that provides aircraft maintenance and manufacturing services support for global commercial and military organizations. It is a global leader in this field.
Porter, (1998) It is worthy to note that Generic strategies provide customers with what they want at a better price, or more effectively than others.) In this case, Sikorsky Support Services (SSSI), would rather choose whether it will compete on price, or by being more effective than others. In simple terms it implies, it may decide to cut down its prices but bear in mind competitors are likely to follow suite, or by improving on its product which I choose as the best option, or by focusing on a specific customer.
In selecting a generic strategy for Sikorsky Support Services, I would go for one that demonstrates a level of knowledge that meets or exceeds the requirements and is well supported so that it can be in place to achieve its long-term goals. My justification for this chose is due to the fact that Sikorsky is a global leader in the aircraft service industry. In that case, the organization due to its repute and ability it will have an incentive to be innovative and continuously improve while focusing on its specific customer (the government).
Besides that there is a growing need for innovative products especially military jets due to the various conflicts in the world. Sikorsky should not increase the price of the aircraft due to the shaky United States economy which may call for the government cutting on military spending. To avoid loosing its customers especially the government due to the shaky economy, the organization should focus on a wider market by ensuring that its product are differentiate even though selling at the same price. Porter, (1980) Companies that differentiate offer their customer high perceived value.
Differentiated goods and services satisfy the needs of customers through a competitive advantage. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and better margin. The benefits of differentiation require producers to segment markets in order to target goods and services, generating higher than average price. (Porter, 1998) For this case, Sikorsky should differentiate its products even though it will incur additional costs in creating their competitive advantage. The costs will be off set by the increase in revenue generated by sales.
Grand strategies that would be ideal for the organization would need to demonstrate a level of knowledge that meets or exceeds the requirements and is well supported. (Fukuyama, 2010) Why? Other competitors are coming out strongly and it is capable of carrying out such strategies even though they mean an increased cost, this will be covered by huge sales. The grand strategies include: concentration, market development, product development, innovation, horizontal integration, divestiture, and liquidation among others.
The reason I advocate for the above grand strategies to work with generic strategies is because Sikorsky has established itself as capable and quite innovative and that is why it is a global leader in the aircraft service industry. In that case, it will be in place to put the above strategies in to place and help the organization become a leader in production, sale as well as cut a competitive edge in other areas.
Sikorsky places a premium upon innovation in its aircraft technology and this shows how innovative it will be even in future. Sikorsky has a strong market but which is limited and primarily contract business with the government. Few substitutes exist for the type of technology sold by Sikorsky demonstrates a unique market that will help it attain its long-term goals. In the future, the organization can develop a wider market and this can be achieved by being innovative- which Sikorsky already demonstrates to attract a wider market.
A product is the most important element of an organization and which it sells to the customer. The product should be unique and meet the needs of the customer. (Porter, 1998) Sikorsky will be required to obtain higher quality of materials to improve on the end product, which should create the company's high-tech products that are better than of its competitors such as Lockheed.
For an organization to have a competitive advantage and to attain long-term goals it must also apply alternative strategies. A firm may chose to focus on one of the following; value discipline, product leadership, operational excellence and customer intimacy. In this particular case, Sikorsky will require to demonstrate a level of knowledge that meets the requirements. Alternative and specific strategies work to enhance and support the generic and grand strategies and so they hold significance too.
Sikorsky has to maintain a value discipline which it boasts of having achieved. Being a global leader in the aircraft industry shows that it is a value oriented company and for it to realize its long-term objectives, Sikorsky must maintain value discipline as well as its mission and vision.
Besides that the organization must also demonstrate excellence in its operational. I say that it should demonstrate a level of knowledge that meets operational excellence because for years it has been reputed to being a pioneer in matters of excellence and this is something that has seen it rise to be a global leader, fail to do so, then it will be taken over by its close competitors. For instance the organization needs to note their main competitors Bloomfield and Boeing have already created unmanned helicopters. "They [Sikorsky] are behind the curve a little bit, in that other manufacturers around the world have been looking at unmanned versions of traditional helicopters for years
For any business or organization what so ever, customers are essentially their most important component. Because of this customer intimacy must be developed and nurtured for long-term benefits of the company. The benefits of customer satisfaction extend beyond gaining more business. Customer satisfaction has to begin with the delivery of customer value through products or services. This is not enough and the organization has to nurture a relationship with a customer, with a quality of engagement with the customer, and timely access to critical information.
And just like the company's mission states, that the company pioneers in flight solutions that bring people home everywhere... every time and it and also goes ahead to add that, "safeguard and delight customers" as well as uphold ethical standards, embrace collaboration and challenges, and uphold a high standard of quality" Sikorsky must always develop an intimate relationship with its clients because fail to do this, they will loose them to the competitors.
Many organizations fail to align their mission, vision, goals and strategies. This could be attributed to the fact that each of these documents is created separate in isolation of others.
Another reason could be because most organizations do not look at their mission, visions and goals that often hence tend to forget their content. Sikorsky mission is 'We pioneer flight solutions that bring people home everywhere…every time" It is quite evident that it completely describes what the company provides - flight solutions, hence just as a mission is supposed to do it articulates why Sikorsky exists. The overall strategies of Sikorsky are to provide flight solutions hence aligning with the mission of the organization.