According has been stepped forward uniquely. So by

According
to the retrenchment strategy that basically reflects the down sales and poor
profit which leads to the loss. But comparing the theory to the GSM scenario,
its annual report shows the positive growth range of sales, profit and the net
assets which has been stepped forward uniquely. So by considering about the
above stated facts it can be assured that the GSM are practicing the Growth
strategy. Following aspects will deeply explain how and why GSM is practicing
the Growth Strategy.

Possible
Alternative Strategies Relating to Substantive Growth, Limited Growth, or
Retrenchment for GSM

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Focusing
on the fact that the organisation should attempt all possible ways to expand
its business globally, there are different methods and ways that can be
employed (Kelly, 2009; Manzini and Ponsatic, 2006). Those strategies may focus
on market entry, such as merger, acquisitions, and joint venture. Franchising
and organic growth are other types of the market entry strategies. The
substantive growth strategy includes horizontal integration, vertical
integration, and diversification. The limited growth strategy involves market
penetration, market development, and innovation. Finally, the disinvestment
strategies include retrenchment and divestment. We will discuss some of those
strategies in the following texts.

Recommendations for GSM

1-      Substantive
Growth

According
to Thompson (2010) one can notice that the substantive growth strategy is
basically, implemented through two basic elements; merger and acquisition.
However, merger is such combination of two separated companies, may be more or
less in partnership equality. Looking at the status of GSM, the matter is clear
that it has such potential in order to implement merger as a critical
substantive growth strategy. The reason beyond is its appeared market strength.
Moreover, acquisition includes one company that takes over an ownership of
another one (Alkhafaji, 2003). Hence, the substantive strategy can as well be
implemented by GSM, simply because of its potential power related to its market
share in such valuable industry.

2-      Market
entry

However,
checking the case study of GSM, one can note that it is a joint venture, as
admitted by its Management Director. To shed the light on the joint venture,
Thompson (2010) specified it as such limited growth. Hence, two organisations
can share the included ownership. Negatively vision, such joint venture
includes a competitive advantage which is absolutely, narrow. Still one advises
GSM, not to follow the old strategy of such limited growth. The reason is
linking to its strength in share at markets.

Not recommended for GSM

As
to the retrenchment strategy, it is common to be considered as a remedial plan
that in turn, can be taken at the inefficiency stage, strong competition, or
even economic recession. Investigating the inefficiency case, the involved
company should consider three strategies of retrenchment, assets reduction,
cost reduction, and revenue generation. However, one cannot recommend such
strategy for GSM, and as well as criticize the decision of the Competition
Commission to sell the assets in India. The influence of such suggestion will
be risky on the industry as a whole, and on GSM, as a special. Once again,
limited growth (the recent strategy of GSM) is not recommended. (Google, 2014)

 

6. Select appropriate future strategy for the organization

Choosing
substantive strategy and interactive strategy for GSM. Therefore, the Ansoff
Matrix can assist the company in selecting and implementing its strategy. As to
the substantive strategy, the company should pay attention to the vertical and
horizontal integration, linking to the unrelated diversification. Hence, the
substantive growth strategy is applied within merger, acquisition, or even
joint venture. As to the horizontal integration, it will happen as soon as GSM
acquires or even merges with any other competitor or minimum another
organization operating during similar period in the value chain technique. The
both companies may appear well to different market sections, apart from their
directly, compete. Hence, it may apprehensive actually, with some matters of
the critical mass.

As
to the vertical integration, it may happy as soon as the company becomes
indeed, its own distributor or supplier. Diversification happens when the
organization aims at making new service or products for its new accessed
markets. On the other hand, while referring to the appropriate future strategy
for the case study, one should pay attention to the human resources (Armstrong
and Brodie, 1994; Barney, 1995; Campbell, 1999). For GSM, its human resources
are the key asset that can in turn, paving the road for achieving its
competitive advantage and sustainability.

GSM
in fact, has identified the requirement for further innovation and development
of the requirements of its stakeholders, in particular those employees who
attempt all possible ways to meet the company’s mission and vision. This can
assist GSM for great extent in the process of turbulent markets place. In
addition, such skill development and training providing to the involved
employees will push the company towards its quality service and win its
competitive advantage, simply thorough those available resources, as urged by
Wilson and Gilligan (2005).

Interactive
strategy is recommended, as well for GSM that can be considered the future
strategic attitudes of this company, simply due to the rationale beyond these
strategies that are aiming at competitive advantage within considering the
competitors’ strategies. Linking to such fact, GSM should consider quality
strategies, interactive price, interactive strategies, cooperative strategy,
and game theory in such hyper-competition. On the other hand, according to the
theme of interactive quality and price, the involved strategies suggested for
GSM should make all appropriate methods to offer best prices and highest
quality to its loyal customers. Most importantly, such interactive strategies
in the hyperactive competition will clarify the way by which GSM can strongly,
face such competitions and arrive at the planned competitive advantage.

The
game theory, however, will help gaining competitive advantage for GSM. Such
theory is a reaction for the competitor movements of the markets (David, 2004;
Frisendal, 2012). Finally, the interactive strategies are best technical tools
that should be selected and implemented by GSM. Franchising is as well a
valuable strategy for keeping and getting more customers. It is such marketing
procedures by which, GSM can make a reputable image in the eyes of its
customers regarding the unique services and products offered to them.

Franchising
according to many experts is seen as a method for repartition of services and
products which can fulfil the expectation of customers. Still one should admit
that Ansoff’s Matrix is a valuable method, by which GSM can creatively,
identify the available opportunities in order to develop its products and
services’ ranges. However, the basic types of the strategies which GSM can
follow are the substantive growth mainly through products development, the
market development and as well as vertical integration and diversification.

Therefore,
employing the technique of Ansoff’s Matrix will assist GSM for greater extent
to figure out whether it should seek new customers for the existed services and
products, suggest more services and products in order to provide them to the
loyal available customers, or even stay with the available products and
resources in order to gain more market shares. Moreover, by the assistance of
this matrix, GSM can consider the involved risks to find out many options to
overcome them.