Product Differentiation Results
In order to improve AAA’s performance among its competitors, one of the business decisions was to implement a product diversification strategy. A new and more competitive product was introduced to the market with respect to the product specifications. The newly introduced product, Elgera, is characterized by a higher capability cost, better battery life, and better performance in comparison to those of the competitors. The products differentiation strategy allowed for investing in the development of a product that yields higher company presence in the market and increased profits in the future. However, it is noticeable that the difference between Asian and European markets influences the demand for the product, which should be incorporated in the future.
R&D and Customer Care Increased Investment
Another business strategy used by the company was the increase of investment into research and development. The goal of such a strategy was to obtain a solid competitive advantage by producing items of improved quality with specifications that outperform competitors. In this regard, the company managed to extend battery life and performance of the products by means of the utilization of latest technological advancement. In addition, the investment into customer care was increased with a purpose of stabilizing and maintaining customer loyalty and brand reputation. In particular, such a strategy allowed for extending warranty periods, and alter the margins on repair, which were higher in Europe than in Asia.
Market Size Increase
Another important result achieved by the company was the increase of market size is Europe. The strategies of improved marketing techniques allowed for increasing sales to households from 50k to 180k; to high-end households from 190k to 450k; to companies from 50k to 120 k; and to high-end companies from 260k to 550k. The results imply that the largest margin was achieved in high-end households and high-end companies, which should be addressed with the strategy of maintaining the current market presence to ensure stable profit-making. As for households and companies, AAA should incorporate targeted marketing to ensure a better market size in these segments. Moreover, the same strategies should be applied to the Asian market to even out the results.
Implications of the Implemented Business Decisions
Overall, the results of the implemented business decisions provide valuable information about the company achievements. In particular, there are differences in market share in Europe and Asia, which implies that the company should devote efforts to ensure consistency of global presence. Moreover, the positive outcomes of the product differentiation strategy imply the necessity to extend this practice to Asia, since European results have been satisfying. In addition, the increase in the market size demonstrates the prospects of the company to sustain its profit-making and competitive advantage. Thus, it is imperative to maintain the strategies that have yielded increased indicators in Europe to improve AAA’s market size in Asia. Finally, the company should continue investing in R&D and customer care to ensure its quality-based competitive advantage and loyalty of buyers.