Kingston Financial Position Free Essay Example, 2500 words

Earlier the monopolies were owned by a few companies, such as Skype. However, now there are several companies which offer VOIP and integrated communication services all competing for market share. This means that the bargaining power of suppliers depends to a great extent on how they market their services. The proliferation of integrated communication services means, in effect that competition is fierce. The fact that Kingston Communications acknowledged that the world of communications was changing allowed them to become one of the key players. Their reposition is a vital factor. The limitations of the model of this model to some extent are that you should not estimate or underemphasize the importance/strengths of the organization. This is known as the 'Inside-Out' strategy. It was designed for analyzing individual business strategies and does not allow for the variety of interdependencies which exist in large organizations such as Kingston Communications. It requires rapid, system atic and radical change. This, in turn, requires more approaches to strategies formulation. It might be possible to create completely new markets rather than competing in the existing ones currently in play. We will write a custom essay sample on Kingston Financial Position or any topic specifically for you Only $17.96 $11.86/pageorder now For Kingston, this could take them away from their core market. This may have been an improved approach to use for Kingston, as their aims are based on profitability/attractiveness in the industry in which it operates, and the position it holds within that industry. In this case, Kingston was well position as they were an established communications provider. The cost advantage and differentiation. Applying strengths in a broader scope, there are 3 generic strategies, of cost leadership, differentiation, and focus. They are called generic because they are not firm or industry dependent. Kingston needs to be a low-cost producer for a given level of quality, as this would increase Kingston's competitiveness. They would need to provide services at average industry levels to earn profit levels higher than their rivals.