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MGT520 Managing Business Strategy

Table of Contents
1. Introduction
2.Our vision
3.Our Mission
4. SWOT Analysis
5.Our goals
6.Schools of strategy
7.The planning school
8.The positional school
9.The resource-based school
10.Finally In my view
11.Competitive advantage strategy in both markets
12.Recommendation
13.Conclusion
14.References

Introduction
Creativity and innovation in business development is the pillar of success for
startups in the labor market, which every successful entrepreneur aspires. The
businesses may be in danger if they are stable, but continuous improvement is the
only way to get business to the top of success. - Since Toyz, despite its recent
appearance, has made a huge qualitative shift in the field of gaming trade, which
made it achieve in only 36 months revenues in millions, this indicates the strength
of the content and the increasing demand for this type of games provided on the
other hand, it was able to maintain a large volume of Clients during this period This
requires more development and innovation in supply and production, creating new
market outlets, searching for new potential customers, and seeking good planning
to implement the expected growth strategy to expand the scope of work. - To
succeed, it depends on our ability to define the goals that the company seeks to
achieve. Therefore, smart goals are designed for a tool that creates indicators to
help improve the chances of success and achieving progress. It helps to verify that
we are moving on the right path and also saves time and energy at work. The
correct preparation is the key to success for any business.
his is what we are trying to help the company accomplish in the following lines: The
existence of any organization or company should have its vision for which it was

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established and also the mission and values through which it can gain the trust of
customers, employees and, all stakeholders in the company. As well as setting clear
goals that make them achieve these visions and values. Because management is
the art of accomplishing tasks through others and administration is the essence of
science and its basis is defining priorities and accomplishing tasks and their goal of
achieving goals, and therefore we begin to define.

1 - Our vision
To have renewable and attractive entertainment content with the highest standards
of quality, service, and best practices that we can reach in every home and connect
the world with our products.
2- Our Mission
Transparency: We are committed to the credibility of our customers, partners, and
employees. We firmly believe that honesty, clarity, and business ethics should be
the basis of everything we do, and holding ourselves accountable is the secret of
our success. 2-2 Responsibility: We are proud that we care about the comfort and
safety of our employees and customers alike, and our keenness to be
environmentally friendly is one of our top priorities. We contribute positively by
adopting environmentally friendly policies, and providing content from games that
help the growth and development of the capabilities of everyone who uses it, not
just a game that we believe will have a positive impact on society. 2-3 Real
Investment: We invest in our employees who are our real capital. We always strive
to attract and employ all those who have a passion for innovation, creativity, and
achievement, and we embrace diversity in cultures and reward those who deserve
and strive to develop the capabilities of all.
Mutual Profit: We value our community of partners, suppliers, and stores that we
work with, based on our belief in the need to grow and succeed together by
providing our full support and expertise to everyone who needs or requests it. Our
relationships with our partners are strategic and fruitful business relationships that
we are keen to develop.
3- SWOT Analysis :After defining the company's vision and mission, we are now
identifying strengths, weaknesses, opportunities, and threats
Strengths:
Attract a large segment of the age groups to these games. product quality. The skills
and competence of the staff are very high. The ability to be creative and creative.
Direct communication with suppliers and customers anytime, anywhere.
Weakness :
There is no clear strategy.
The lack of marketing skills.

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The distribution and sale operations are limited to two markets only.
Our products can be dispensed with during crises.
Opportunities :Targeting the environment of the Arab community, which lacks
specific content in the Arabic language. The increasing demand for this type of
product during the current crisis. The severe shortage of products in the market
during the Corona crisis.
3-4 Threats
* Corona pandemic, which stopped all movements.
Entering new competitors at a lower cost.
The significant change in exchange rates during this crisis.
Imposing new policies during this crisis.
4- Our goals
After completing the SWOT analysis, we can say that we are now what are the goals
that help us achieve our vision and mission. In the beginning, many people went to
work in e-commerce or to rely on them to buy many of their needs, and people
increased their demand during the Corona crisis, and the measures imposed by
many countries to preserve the safety of individuals, which were mainly the
commitment of the home and not out of it, Except in the worst case, which
contributed to the increasing importance of e-commerce, and the increasing
demand for home entertainment tools, which led to an increase in opportunities for
our company to achieve great profits.
5. The long-term goals are
: Working to develop the value of the trademark within 5 years so that it will be
among the top 10 brands in the world:
a) Increasing the annual revenues during the next 3 years to 100%
b) Targeting the Arab market and acquiring a market share during the next 3 years,
at 60%.
c) Producing a special product in the Arabic language, as the Arab community
occupies a very large segment. During the second year.
d) Opening a new headquarters for the company in the Middle East by the end of 3
years.
6 The short-term goals are:
a) Increase revenue during the first year by 50% (exploiting the existing crisis)
& second year 30% & third year 20%.
b) Prepare incentive programs for employees to feel loyal to the company.
c) Developing relationships with suppliers to obtain a sustainable partnership
and reduce the costs of raw materials by 15%.

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d) Increase 40% in the budget of R&D over the past year to keep pace with
technological development.
e) Work on designing the company's web application so that we can display all
products for the speed and ease of completing sales during the second half of
the year .

5-Schools of strategy (ApS, p. 24) There are three schools of strategy:

a) The planning schools.
b) The positional school.
c) The resource-based school.
a) The concept of planning school (Andrews, 1987, Ansoff, 1965) (ApS,
p. 24)
This school relies based on previous trends, forecasts, structures, and stable
environments and uses bureaucracy in a rational way, as it tries to achieve
"compatibility" between the organizational strategy and its environment and
requires detailed and inflexible planning and this school is not suitable in
troubled markets.
This school has been divided into four strategies:
Market penetration: • It depends on the market being satisfied with existing
products to increase sales in the current market in order to lead to an increase
in its market share through: • Lower prices to attract new customers and
increase promotion and distribution efforts Product development: • It depends
on introducing new products to the current market. We are developing a new
product to meet the current market desires. This step usually involves extensive
research and development while expanding the company's products. • A
product development strategy is used when companies have a strong
understanding of their current market and can provide innovative solutions to
meet customer tastes This strategy can be utilized by investing in R& D to
develop new products, obtain a competitive product, integrate resources, and
form strategic partnerships with othercompanies to reach distribution channels
or brands.
Market development:
• This approach is predicated on entering a new market using the same existing
products but expanding into new markets and expanding into new geographical
regions and new customer segments.
• For this strategy to bear fruit, it must the company has advanced technology
that can benefit from it in new markets, Potential consumers have irreplaceable
financial savings

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. • Consumer behavior in new markets does not deviate much from consumer
behavior in existing markets, and that is by offering games for a different age
group, entering a new local market (expanding regionally), or entering a foreign
market (expanding internationally)
Diversification: It depends on new development in both products and markets.
Although this strategy is the riskiest as market and product development
requires major efforts both technically and content in order to have a distinct
market share, the risks can be mitigated to some extent through related
diversification as it opens up an entirely new source of revenue for the company
as it reaches consumer spending In a market the company previously had no
access to.
Note Of the four trends, market penetration is the least risky, while
diversification is the riskiest. (institute & CFI, 2020) 9

Advantages - Market development Diversification Market penetration Product

development Existing products New products ( (Ansonff, 1965)
Simplicity: It is very easy to understand the data contained in this matrix as
anyone with limited knowledge of marketing can understand and work on the
above four scenarios and simply give you four alternatives from which you must

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choose the best alternative from them so that companies can achieve their goal
of increasing company sales and profits.
Monitor all possible alternatives: It also helps the company monitor all
possible alternatives so that the company can make the right decision, which in
turn will help the company increase the desired growth through this strategy. So
that if the company's product does not work well in the current market then it
can go to develop the market if the company does not have a new product in
mind, however, the company must set a marketing budget and the cost of
advertising to present the current product in the new market or the company
also goes to develop the product If you do not want to risk entering a new
market.

Risk analysis: It helps in analyzing the risks associated with each strategy
which in turn helps the company prepare accordingly.
Disadvantages - - -
Competitors are ignored: One of the serious flaws in the Ansoff matrix is
ignoring competitors because this matrix only shows the company’s product and
the company’s market regardless of the competitors who are already in the
market meaning that you work without knowing what other people are doing or
what they produce or how much they get from the market where it plays a large
role in a report Whether or not the company strategy works.
Lack of cost-benefit analysis: It only refers to the strategies but it does not
take into account the cost-benefit analysis of the various strategies, and then for
example if the company is confused between the diversification strategy and
the product development strategy more than it takes the help of cost-benefit
analysis to make the right decision. In simple words, there is a need for a cost-
benefit analysis to justify the company's decision as it is in the end, it is all
about the numbers as every measure of the company aims to increase the sales
and profits numbers of the company.
Difficult to forecast: Ansoff matrix looks simple but in real life, it is very
difficult to predict the impact of implementing these strategies on company’s
sales and profits because consumer and market reaction can never be predicted
with 100 % accuracy resulting in all calculations going for a toss and hence the
company should keep it in mind before taking any decision.
One can also see from the above that this matrix is completely beneficial in
relation to the company but at the same time suffers from restrictions and this is
the reason why companies use this matrix smartly not only to increase their
sales but also to enhance the company's position in the market as well as create
a brand image of the company's products In the minds of consumers .
c) The concept of the positional school (Porter) (ApS, p. 44)

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The company depends on what distinguishes it from others and increases its
profitability, and the focus is also on it being a rational analytical approach to
developing the strategy, as well as attempts to place the organization and its
products in a favorable market or environment and largely depends on
performance measurement and decision-making tools, as the competitive
advantage may last for a time It becomes short or persists for several years. You
may be able to create a competitive advantage, but competitors quickly imitate
them, and thus the competitive advantage of the resources and the capabilities
on which this feature is based and which affects the ease or difficulty of
imitating them will disappear, the more these resources are difficult to transfer
and difficult to imitate the longer the competitive advantage lasts longer. Also,
the dependence of the competitive advantage on many resources and
capabilities makes it difficult to know the reasons for this competitive advantage
and how to imitate it, and internal and external factors have a direct impact on
this advantage
: - Internal environment: Know the company's ability to own resources, and
build capabilities or acquire it so that it is not available to other competitors. An
innovative, novel, and popular game design for customers enables them to
create a competitive advantage by researching and discovering what the
customer needs continuously. Creativity and content presentation have a major
role in creating a competitive advantage. Creativity here is not limited to
developing a product or service, but it includes creativity in strategy and
creativity in the method of work or technology used and creativity in creating a
new benefit for the customer.
- External environment: Since the company under study relies primarily on
games, the huge and tremendous change in technology every day is one of the
factors that directly affect them and this leads to a change in the customer's
needs, which in turn may create a competitive advantage for some companies
as a result of reading and understanding the market needs and the speed of
their reaction to These changes, hence the importance of the company’s ability
to quickly respond to external changes, and this depends on the company’s
flexibility and its ability to track changes by analyzing information and
anticipating changes.
Next up, he (Porter) sees three main
1- Cost Leadership Strategy: The company’s strategy is to reduce the cost and
sell products at lower prices to increase the market share and to increase the
volume of its sales while maintaining an acceptable level of quality and thus
is a strong line of defense against competitors and the negotiating power of
consumers and also places great obstacles in front of any new competitors
2- 2- Differentiation Strategy: Through this, the company provides products or
services distinct from those provided by competing companies, and therefore
the customer accepts to pay in them a higher price than usual and is by
enhancing the mental image of the company while highlighting the quality,
service, and identity of the product. One of the main aspects that should be

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focused on in order to reach Differentiation: - Knowing what the client aspires

to: distinguish the product or service that aims to provide added value to the
product that meets the needs of the customer and therefore the customer
accepts to pay in our product a higher price than others. Therefore, it is
important to know what are the customer needs and which are not satisfied
with the products offered in the market and to study the value that the
customer can pay for this service. Marketing studies are used by doing
individual personal interviews with clients and asking them how they make
the purchasing decision and what they like and miss in the products Current
and about the way they use this product and the method of observation by
the customers can be used for the product, this may help us discover some
things that can be improved in the product and also we can send a survey to
clients by mail or submit them to them when they buy something from our
products. The customer must feel the importance of this matter and that he
is real and serious and that he has a counterpart such as discount coupons or
the like.

- High ability to develop products/services: The development process

requires effective management and the ability to create products that are
different from others. And for the success of the development process, a
team must be formed from all the departments of the company in the
different specialties: marketing, design, research, manufacturing, accounting,
purchases and possibly other specialties, and all of these are involved in
developing the product from start to end as this gives a great distinction
because the manufacturing specialist will express his views From the
beginning, as he will feel the needs of the customer, as well as the marketing
specialist will be aware from the beginning of the effect of some additions to
the product on cost and profitability.

Promotional campaigns: For the above factors to succeed, there must be

high marketing capabilities. Also, companies that sell premium products
need to be able to convince customers of the quality of their product and
that the value that will accrue to them from the acquisition of this product is
proportional to the price. Also, building a good reputation
for the brand is important in the case of adopting the strategy of excellence
because the presence of the brand’s reputation for quality and high
performance makes the customer ready to pay for a higher material price
because this identity is almost a guarantee of product quality as well as the
company's confidence in its product

Capacity for innovation and creativity: Companies that compete by

distinguishing their products/services need to encourage workers to be
creative. Creativity needs flexibility while reducing costs requires oversight.
And that many companies in the levels of departments neglect the great
value of the ideas that can be presented by workers at all levels.

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Research: In order for creativity and innovation to exist, scientific research

must exist, as it is the basis upon which technologically advanced companies
depend to produce new products. The development does not depend on the
existence of a research department as many products developed using
existing technology and may be used in another field or without any
technological or scientific change. The effectiveness and efficiency of the
organization's management is the main support for the success of the
Differeentiation strategy.

3- Focus strategy: In this strategy, the company focuses on a specific

segment of the market or a specific product and tries to meet the demands
and needs of customers and therefore the company in this case aims to
achieve excellence in products or prices or both.

PORTER STARGEIS:

Competitive Advantage (Porter,, 1985)

Advantage
Help measure competition.
Help ineffective planning.
The power to negotiate with buyers and suppliers.
Disadvantage -
Differentiation Ignore the environmental factors surrounding the competition.
The lack of a unique industry gets all the positive points.
The inability of some industries to implement it.

c) The concept of the resource-based school (Robert Grant,1998)

(ApS, p. 25) :You rely on exploiting external opportunities by using existing
resources in a new way rather than trying to acquire new skills for each
different opportunity. Internal resources must be given the primary role in
helping companies achieve higher organizational performance. There are two
types of resources: hard and soft.

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- Tangible assets: Land, buildings, machinery, equipment, and

capital - all of these resources can be easily purchased in the market and
thus do not give companies a huge advantage in the long run because
competitors can obtain identical assets.

Intangible assets: are everything else that does not have a physical
presence, the most important of which is building the brand's reputation over
a long period, which is something that other companies cannot buy from the
market. Intangible resources usually remain within the company and are the
main source of sustainable competitive advantage.

6- Finally In my view It is the positional School that is achieving the

desired growth opportunity for the company

7- Competitive advantage strategy in both markets

1- In Japan: Given the Japanese society and the tremendous progress it has
reached, it is necessary to present a product that is characterized by
creativity and innovation all the time as it sees what value the product
provides or how much society benefits from it.
So, the competitive advantage is differentiation.
2- In the United Kingdom: Since the market is open differently from Japan
and can be easily accessed by many competitors, the focus should be on
cost and customer needs analysis to increase market share and to
increase sales volume while maintaining an acceptable level of quality
and thus a strong line of defense against competitors and consumer
bargaining power as well as position big obstacles in front of any new
competitors. So, the competitive advantage here is cost leadership

8- Recommendation

 Attracting highly creative and creative employees

 Create motivational programs to increase loyalty to existing customers
as well as potential customers
 Building a company’s brand or acquiring an existing mark with its
development, as it is an easy guide to spreading in the event of its
quality.
 Increase the resources of the R&D departments, listen to all ideas from
all administrative standards, and create motivational competencies for
the best of them.
 Since the nature of our products is very changing, we recommend
adopting the creation of a special department to study the market,
read, understand and forecast what external and internal events are

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interpreted in order to quickly respond to any changes and prepare the

necessary decisions at the appropriate time.
 Opening new markets to accommodate the development and technical
progress to improve its position and presence in other places. 18
Conclusion
Reaching success is essentially easy, but continuing requires good planning and
clear goals. Otherwise, everything we aspire to is just a dream. Success is the
inevitable result of good preparation and planning, aligning time with prioritizing the
most important goals and achievable goals taking into account external factors.
(The goals are pure imagination unless you have a specific plan to achieve them).
(Covey, smart - goals, 2019) 19

References:

Ansonff. (1965). Corporate Strategy. Boston:.

Covey, S. (2006, 6 25). Retrieved from https://samehar.wordpress.com/.
Covey, S. (2019, 11). Retrieved from smart - goals: https://blog.khamsat.com/smart-
goals-howto-plan-and-how-to-achieve/
institute, c. f., & CFI. (2020, 7). online Business Strategy Course. Retrieved from
https://courses.corporatefinanceinstitute.com/
Porter,. (1985). Competitive Advantage:. New York:.
Ritson, N. (2011). Strategic Management.
Ritson, N. (2011). Strategic Management.

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