One of the major strengths of any company is how well it can produce and deliver the unique and specific commodities that no one else offers in the market. GM operates in the highly competitive market, and the absence of focus makes it quite vulnerable. The management has become distracted and scattered trying to move simultaneously in many directions. The lack of focus has led to insufficient movement of the business in any specific direction, thus having contributed to the market failure. Market focus implies limiting the scope of production and concentrating one a particular aspect the company succeeds in. The absence of market focus has the potential of confusing consumers and might limit the company’s chances of flourishing.
The Choice of the Research Problem
One of the major problems faced various managers is how to serve the heterogeneous market and to decide whether to occupy a smaller segment of the market, hoping to achieve prosperity by increasing the market share, or whether to appeal to the broader section of the market. Market focus affects the way organization delivers product to a particular class of consumers. The failure to have an appropriate market focus can limit the company’s ability to grow and compete with the already established firms (Singh, 2014). An entity that is market-focused studies the external environment to detect the data and inputs required in making tactical and strategic decisions. Market focus implies gaining an understanding of the customers, the exact services or products they need, as well as the competitors and their next tactical move or strategy. In the case of GM, strengthening market focus shall entail analyzing the tactic and strategic forces in the marketplace and understanding how such factors can affect the business. A company that is product-focused strives to continuously improve products so as to suit a specific market. To advance the services and products, the chosen business strategy shall be oriented on achieving differentiation and offering better commodities than the competitors.
Market focus can allow GM to identify the opportunities and capitalize on them, while product focus can facilitate the identification of the improvements that could give a company a competitive advantage over other firms. To GM, product focus poses the major challenge since the company fails to acquire the important information in a timely manner, thus falling behind the competitive race. The firm’s growth is thus hindered because it cannot effectively respond the marketplace dynamics. Enhancing market focus is crucial because it offers the best pathway to sustain the best and most profitable growth. In this respect, situational responses, marketing investment, and clarity of action and visions are the critical factors (Bocconcelli, 2017). The clarity of actions and vision implies setting vision and direction of the firm and then converting the clarity into all the processes and activities, considering the marketplace and the customers first. Apart from concentrating on growth, a company ought to continue making daily decisions supporting the adherence to the vision. Irrespective of the distractions that arise, the major focus should be on the consumers. The adoption of a market focus is essential in ensuring that the needs of all individuals are considered to increase the level of satisfaction in the market.
Addressing the Problem
The key challenge that GM faces is the absence of market focus. To solve such a problem, the company must find a path to greater revenue by building upon its major strength without causing disruptions in the way it is currently operating. The company should communicate directly to the buyers to inform or remind them of the products offered (Flanigan, 2016). An important aspect to take into account is that different customers have unique attributes, and communicating directly with them can provide insight into the ways of tailoring commodities to suit their needs. The company can enhance the commodities to enhance the overall value proposition and meet the additional needs of consumers, which can entail changing the delivery of information through seminars, booklets, or eBooks.
The company ought to maintain innovation technique. It is important to note that if the sales of the current brands decline, the management should immediately extend the product line and replace the existing titles. In addition to that, the presence of many brands provides the customers with a wide range of commodities to select from (Kant, 2017). The company must provide a long-term opportunity to drive revenue growth in all the segments. Consumer’s education on the products offered is necessary. From the case study, it is evident that GM’s distribution system is not effective because it fails to reach the target market, thus facing difficulties in competing with other industries in the sector. The company should build a parallel sales and distribution channel to penetrate the new markets, which can include partnering with other firms, home shopping networks, and display-marketing companies.
GM can increase its market focus through innovation, acquiring competitors, smart hiring practices, and strengthening customer relationship. An increased market share will give it a competitive advantage over the rest of the firms. In addition, it will considerably foster the increase in production. Strengthening customer relationship is necessary to maintain customer’s loyalty when a competitor introduces a new hot offer. GM would increase its market share if the satisfied customers shared the positive experience they had with their relatives and friends, who would be thus encouraged to become the company’s customers. Broadening the extent of the market via word of mouth increases the company’s revenue without raising the expenses.
GM can also increase its market focus by acquiring competitors, especially in the developing nations. By making acquisitions, the company would be more likely to reduce the number of businesses competing for the same market and acquiring the firm’s market base. A company with the largest market share is likely to attract the most dedicated and skilled employees (Jedliński, 2015). Having the best workers on board can reduce the expenses that are related to training and turnover, enabling the business to direct more funds to the core business strategies. One of the most efficient ways of attracting the best workers from the market is offering competitive benefits and salaries.
Product development is a lifelong strategy for many instructions. GM should note that new services and products can enhance its clients’ interest and thus enable the business to remain relevant. Many firms fail to achieve their business objectives and goals due to the absence of the customer-centric approach. In addition, it frequently occurs that profit-oriented companies fail to acknowledge the people who contribute to the enhancement of business success and growth. To strengthen customer focus, the company should build a constructive relationship with clients, deliver the right service at the right time, identify risk customers, apply the best way of encouraging them to stay, as well as provide personalized and quality customer experience.
The Power of Market Focus
Market focus implies putting an emphasis on a smaller fragment, which is crucial if an institution intends to achieve differentiation, cost advantages, and clearer alignment. The brand can be presented in the market in a digestible, succinct, and clear manner. One of the most critical aspects of any marketing strategy relates to the identification of the growth opportunities by utilizing the strengths, weaknesses, opportunities, and threats. Carrying out SWOT analysis would make it easier for GM to address the opportunities that are presented in the market (Johnsen, 2015). The senior management should ensure that they remain open to such new ideas that can lead to the improvement of the company’s operation. The main emphasis should be put on enhancing awareness of the brand and developing confidence and trust in the company.
Conclusion and Recommendations
In the present global business environment, firms are increasingly competing for the available customers. It is essential for the management of GM to maintain and create an effective marketing strategy, which must compliment and reflect the wider financial goal of the company. GM should clearly follow the desired path that directly targets the company’s desired consumers. The best strategy to be adopted by the company is to prepare for the unforeseen changes in the wider business environment. It is important to note that when the potential or expected damaging changes occur, firms require the most flexible plans. The management should use the well-stipulated plan to continuously enhance the brand’s success. The company also needs to tailor its strategies to the audience in various nations. An effective strategy should consider the customer's interests and preferences. GM should acquire and make use of as much data as possible from various industries to build a lasting relationship with clients. Data analysis can enable the company to determine the products and issues that are important to the customer base. GM can utilize the present social media platform to keep in touch with customers from all over the world and collect data that can enable it to tailor the products to their respective needs.
References
Bocconcelli, R. (2017). No business is an island: Making sense of the interactive business world. Journal of Business-to-Business Marketing, 24(4), 311-314.
Flanigan, M. (2016). Diagnosing and changing organizational culture in strategic enrollment management. Strategic Enrollment Management Quarterly, 4(3), 117-129.
Jedliński, M. (2015). Dynamic logistics strategies in the company logistics potential management. Russian Journal of Logistics and Transport Management, 2(1), 3-10.
Johnsen, Å. (2015). Strategic management thinking and practice in the public sector: A strategic planning for all seasons?. Financial Accountability & Management, 31(3), 243-268.
Kant, C. (2017). Multinational corporations and institutions. SSRN Electronic Journal. Available at: http://www.uc.pt/en/feuc/PEJ2016/docs/FullPapers/ChanderKant. pdf
Singh, M. (2014). Market access: A case study on Indian pharmaceutical goods in U.S. market. FOCUS: Journal of International Business, 1(2).
