Business Strategy of Aurecon Porter-Free-Samples for Students

Question: How can Aurecon improve its stakeholder management Specifically customer needs in order to ultimately increase market share? Answer: Aurecon Singapore Aurecon Singapore has been offering its services to the high-end market. however, it is now considering ways in which it can increase its market share for its services. This section seeks to analyze Aurecon Singapore in relation to its business-level strategy, corporate level strategy and innovation while concentrating its service industry. In order to gain a bigger market share, Aurecon Singapore has to change or improve its strategies. This is achievable through an analysis of the present current market strategies and align them with the desired goal that is, to increase its market share for its services. Business level strategy The analysis is done using the porters generic strategy diagram which is as shown below: - Aurecon porters generic strategy diagram Competitive advantage Lower cost Differentiation Competitive scope Broad target Cost leadership Differentiation Narrow target Cost focus Differentiation focus Currently, Aurecon Singapores business strategy focusses on two levels of strategy for its services products. First is differentiation through high cost and high value while the second is broad market through provision of a wide range of services. Aurecon Singapore, provides a wide range of services for example advisory, design, delivery and asset management services (Schatz, 2014). All this is done through the help of their highly trained and experience staff. The two strategies have enabled Aurecon Singapore compete well in a competitive environment. Through its richness of expertise, it has been able to provide services to the high-end market through its high-value product which attracts a high cost. The excellence of Aurecon Singapore has also been achieved through engaging in a wide market range hence fetching profits from different channels (Bird, 2017). The two strategies are perfect although sometimes a very wide range of products and markets may lead to confusion. Instead of further diversifying or increasing its product range, the next best move can be to adopt another strategy which does not collide with its current one. The adopted strategy must be in line with its vision which is Innovative provides high-quality services. Having this in mind the suggestion is maintaining its differentiation strategy but now focus on lower cost. Since the organization has been concentrating on high cost previously, it can now strive to also gain the low-end market share but maintain quality on its broad market as its competitive scope (Powell et al, 2015). This can be achieved by engaging in providing its services to small projects for example homes, infrastructure, renovations et cetera. Although the profit per product is less, the market size is big. There is a rising demand for better homes in nowadays on which Aurecon Singapore can take advantage of. Corporate Level Strategy Ansoff Matrix diagram can be used to explain Aerocon Singapores corporate level strategy for its services and is as shown below. Products/ Services Existing New Markets Existing Market penetration New products And services New Cost focus Conglomerate diversification The focus here is on its existing market. Having this in mind, the analysis from the above diagram shows that it can either improve through market penetration or through innovation directed towards developing new products or services. Market penetration can be enabled by executing initiatives that lead to increasing the market share. As suggested earlier, differentiation through low cost but quality business strategy can help in enhancing the market penetration strategy. If Aurecon Singapore changes its focus from corporate markets only but focus also on individuals and low-end investors, then it is possible to increase the market share (Foreign Aff, 2015). The main advantage of the combination of the two strategies is that they do not require much research and capitalization. This is because Aurecon Singapore has been in this market for a long time and has the capitalization required hence do not require to invest more towards this. Penetrating on an existing market is much easier than penetrating in a new market. Some of the favoring conditions are that there is no need for much marketing and promotion which proves to be costly and time-consuming are less. Aurecon can also take advantage of the contacts with the existing customers. Some of the contacts which are the employees of their existing clients can provide a new market since they are already aware of the quality of Aurecon products. Since residential houses market is increasing, these clients employee may be in need of building their homes and can be easier to approach when implementing this strategy. This is because individuals do not have much money to spend although they still demand quality (Davis, 2017). The increased demand for Engineering consulting services gives confidence for this strategy. Aurecon should, therefore, be consolidating all the service and allocate resources to meet this demand. Innovation In its to increase its market share in its existing market, Aerocon Singapore needs to engage in innovation of new services. To acquire the desired outcome which is to acquire more market share, Aurecon must decide on how to implement this strategy (market penetration supported by differentiation on the low market but maintaining the high quality) effectively. This can be determined by analyzing the current organization position and design the path to achieve the desired outcome. Market analysis is of great importance in this area. SWOT analysis done shows that there is an opportunity presented by increased demand for engineering consulting services while the key threat is lack of engineering talents (Johnson, 2016). This means that we need to devise ways to increase staff output without stretching the human power a fact that calls for a technology upgrade. In todays world, innovation is at its highest in the sense that better and more efficient equipment and machinery are being made every now and then. There is also a demand for better designs and high quality which are enabled by improved technologies. For Aurecon Singapore, to be able to implement this strategy effectively, they have to take advantage of his technology-push market. This shall help in compensating for few engineers and also help them come up with better products at a low cost. The increased demand for consulting services which is a market pull calls for high output. With this knowledge Aurecon Singapore can meet the increased demand for better products whose production cost is low through innovation. When the organization has advanced technology, they can design products which are unique and push them to the market which is the market pull. The increased demand shall quicken the achievement of increased market share objective (Tomczak T., 2018). Since Aurecon Singapor es vision is Innovative provide high-quality services better equipment shall help the staff to be more creative and which shall lead to innovating for better, unique and high-quality products. Such products shall always attract client and also help improve an entitys image. References Aff, F., 2015. focus on corporate markets alone but also on individuals and low-end investors, then it is possible to increase the market share. Heinonlin, p. 69. Bird, S., 2017. Knowledge Transfer Between RD Projects and Commercial Projects: A Conceptual Framework. Singapore: Springer. Davis, G. F., 2017. Can an Economy Survive Without Corporations? Technology and Robust Organizational Alternatives. Academy of Management Perspectives, Vol. 30(No. 2), p. 30. Johnson, G., 2016. Exploring Strategy: Text and Cases. Chicago: Pearson Education . Powell et al, 2015. A refined compilation of implementation strategies: results from the Expert Recommendations for Implementing Change (ERIC) project. Implementation Science, Volume 2015, pp. 10-21. Schatz, F., 2014. Goodwood Residence. Architecture Australia , Volume 103(Issue 3), pp. 92-99. Tomczak T., Reinecke S., Kuss A., 2018. Introduction. In: Strategic Marketing. Wiesbaden: Springer Gabler