MBA FPX 5006 Assessment 2 Business Strategy

Business managers employ various strategic models, such as VRIO analysis, PESTEL analysis, and SWOT, to comprehend internal and external factors, enabling them to devise effective strategies for gaining a competitive edge. In the case of Vengile Software Company in the United States, the President of Strategy has tasked our team with analyzing the business strategy and conducting a comprehensive business analysis. As a strategic business consultant and enabler, I play a crucial part in helping the company select the optimal course of action.

Generic Business Analysis for the Company 

Various companies employ diverse market approaches, and software firms in the UK and the US hire various strategic methods. One highly effective approach utilized for gaining a competitive edge is Porter’s Generic Strategies. An illustration of this is the Vengile Software Company in the United States, which employs a model comprising four key components: cost leadership, differentiation leadership, cost focus, and differentiation focus. The company uses this model to optimize cost management while maintaining a competitive position (Larbi, 2019).

Furthermore, the “Focus” component centers on the organization’s specialization in niche markets within specific geographical areas, allowing the company to excel in delivering software products tailored to growing industries. Lastly, the differentiation focus strategy represents an evolution of the Differentiation Strategy. It involves a dual focus on product differentiation and a strategic entry into niche markets.

Analysis of the Business Model of the Company 

Vengile Software Company’s business model closely mirrors that of Microsoft Corporation, with a shared objective of enhancing competitive advantage and future growth strategies (Larbi, 2019). This alignment is pivotal for optimizing the firm’s performance and ensuring its competitiveness. The company’s competitive strategy revolves around enhancing the effectiveness of its computer software products in a highly competitive market, catering to a diverse clientele, including individuals, households, hotels, and businesses.

The company establishes a competitive edge through its broad differentiation strategy, attracting a global customer base. The company places significant importance on its software products’ tangible and intangible attributes to maintain its competitive advantage, such as developing unique software systems (Vinayachandra & K., 2019). In terms of market penetration, the company follows a growth-intensive model, expanding its presence in international markets, particularly in Asian countries, while emphasizing product development, akin to Microsoft’s approach. The relationship between the company’s business model and Porter’s Strategies is vital for managerial understanding. It assists in comprehending how the business operates and where it fits in the competitive landscape (Lotysh Oksana, 2022). The business model elucidates the company’s operations, while the business strategy defines its purpose and existence.

Analysis of the Corporate Strategy 

Vengile’s corporate strategy centers on empowering its workforce and individuals through innovative digital technologies, revolutionizing how people work and communicate (Karanina et al., 2023). They aim to leverage their resources, such as distribution channels and marketing expertise, to connect businesses and individuals while enhancing their understanding of user-friendly software to boost productivity. Additionally, the company integrates Microsoft products like cloud systems and Windows Virtual Desktop, alongside Google Chrome and Microsoft Edge, in their marketing efforts, resulting in significant revenue growth in recent years.