Strategic Plan Option, Research Paper Example
Words: 1052Research Paper
In the energy solar sector, companies have several option in which they try to optimize the best option in lowering costs and returning the most profit. The purpose of strategic planning is to develop a set of decisions and actions that are used to achieve the objectives of the organization. (Pearce, Robinson, 2012) When there is an effective strategic plan in place the organization is able to improve on their decision making process, produce a higher profit, and create lower risks for the organization. Strategic planning helps to address where the organization is in the market with the help of internal, external, and competitive analysis, as well as making sure the plan is aligned with the organization’s mission statement and long term objectives. (Pearce, Robinson, 2012) Ultimately a strategic plan is implemented in order to identify where the company wants to be at some point in the future with the steps outlined to obtain their objectives. With Applied Solar Inc., it is no different. Applied Solar Inc. is one of the prominent organizations within the energy industry that champions to develop new technology for renewable energy and resources. The focus of Applied Solar Inc. is that establishes energy management applications that create a positive impact on how energy resources are being used for a more sustainable approach. This work in large establishments such as buildings and other large work spaces.
Pricing Regime Option
The type of strategic plan that Applied Solar Inc., can implement into their organization is based on the mission statement in which the main goal is to provide organizations, and business establishments with the capacity to become independent energy users. Their focus on preservation and conservation is a necessary step for future generations in order to ensure that environmental responsibility is taken seriously. The goals that Applied Solar Inc. is to reduce the carbon emission of large establishments on the environment, and to help organizations reduce the cost paid for their energy resources for operations. In order to fulfill these objectives to the first strategic option, which is to address the economic competencies of establishments that seek to be energy efficient but, are confined by their financial limits. (Mehrmann, n.d) The option is to promote and secure appropriate pricing regime for the energy services including providing incents to voluntarily manage energy consumption. By creating and implementing these financial programs and measures to help clients to optimize their energy use. They can also support a sustained and comprehensive awareness on the cost saving methods and benefits of the Applied Solar Inc. services. This will be in line with the mission and the value statements as well as address the problems with financial limits on consumers. By allowing customers to choose which price category will work with their business, will help companies choose the methods and still obtain the benefits of Applied Solar Inc. services.
Competitive Advantage Option
The second strategic option will align with the organization’s second focus on having a competitive advantage that will help increase profits and brand recognition. According to the company, it will also serve as a tool in service the needs of providing more research aimed and improving the services it provides to customers. This is achieved through seeking to compete within the industry by offering lower costs and providing charging similar prices for services, and products thereby achieving competitive advantage through superior profitability. (Mehrmann, n.d) The organization can do this through seeking to be the lowest cost provider and earn the higher profits. Setting up production facilities for mass production and these will facilitate the economies of scale. Applied Solar Inc. will be able to obtain access for more sources of raw materials, and look for more ways for product design for automation. By concentrating on the productivity objectives it will be able to improve on the economy and efficiency, value chain analysis, and zero based budgeting. This option helps with setting up differentiation from competitors that provide value to their customers, through image differentiation, quality, and the benefits that some customers will be willingly to pay higher prices for services with added value.
Comparison of Options
In comparing both options of implementing a pricing regime or providing a strategy for competitive advantage, the one that will be better is the second option. The pricing regime is ideal for companies that are willing to provide services to different establishments are willing to allow customers to customize their needs. This will help with differentiation from competitors, setting up options that provide the minimal which will serve as the good option, the better option at a slightly higher price, and the best option, that will be the more expensive. However, these pricing options allow for more customers to be more energy responsible in helping to curb their carbon emissions, and preserve energy from their operations. The second option also provides more value, as well as set up a more competitive advantage than the first option. By seeking out to be the low cost provider or producer of energy products, the company would then turn higher profits. This will allow Applied Solar Inc., to focus on costs that will be applied to a niche market segments and providing more products that will be cost efficient to the customer and the organization. Applied Solar Inc. can use this option to implement internal, external, or joint development that will either use existing resources within the company, seek out an acquisition to access new market areas, or form strategic alliances with other energy companies to provide better options to their customers.
Overall Applied Solar Inc., has two good strategic options in which help to address the problems of answering the drawbacks of the economy, which may limit some establishments from using all of the company’s services. Creating a price option will help more customers’ access to the company’s services, as well as provide more brand recognition that will help the company grow in the future. The second option helps to provide a competitive advantage in which helps with differentiation in many sectors of the business, and seek out new ways in which to make their services and products valuable for the customers.
Mehrmann, John. (n.d). 5 Ways to Make the Competition Irrelevant. Business Know-How. Retrieved from http://www.businessknowhow.com/marketing/compirrel.htm
Pearce, John, Robinson, Richard. (2012). Strategic Management. McGraw-Hill/Irwin. New York.
Strategic Planning: What Works…and What Doesn’t. (1999) APOC. Retrieved from http://www.exinfm.com/pdffiles/spwp.pdf
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