Strategic planning

Business Performance Report Strategy
Full Name
ARLO Phones Company is involved with manufacturing and selling of cell phones with
principal objectives of gross profit and gross revenue; maintaining low turn-over of employees;
and increasing R&D of the phones by improving four significant aspects (speed, camera, screen,
and battery).
ARLO Phones Company is ranked the first one against its 15 competitors in the market.
In the past three years, the company made a profit of $74.94 million. Additionally, it has a more
significant market share compared to its competitors. It has 122 employees with a productivity of
96%. It sold more unit than any of its competitors - 420,361 phones. Regarding competitiveness,
its prices, brand, and features are more appealing in the market, even though other companies
outcompete it in pricing like Tri City Mobile. The company has 100% records as far as ethics is
concerned. This evidence means that the company is neither strong nor weak ethically. The score
for the company’s Human Resource is at 94%, 2% more than the previous report. The staff
morale is at 94%, 3% more than the last release as employees are more satisfied in the company.
Productivity is at 96%, and turn-over in the company has declined to 4%. However, company’s
salaries are above the industry’s average. The main factors that propelled the company to attain
this success are the production of more phones that increased revenue, while at the same time,
keeping other departments consistent. It used discounts as a strategy for increasing sales.
Besides, it ensured that its staff is satisfied, thus, reducing staff turn-over. Most importantly, the
company improved its phones concerning speed, screen, battery, and camera which was more
appealing to customers.
Market penetration strategy
ARLO Phones Company adopted a growth strategy to ensure that it penetrates the
market. Because of the number of competitors in the market selling the same product, ARLO
Phones Company opted for market penetration strategy. It sold its phones with discounts to
attract more customers and increase sales. To gain access and stamp its authority in the market
(acquiring market share), ARLO Phones Company has not only discounted its products but also
lowered its price. The company carry out several product promotions and increase its brand
awareness in the market. It has expanded its distribution channels, for example, the United States
of America, Canada, and Mexico. This approach has helped the company expand its product
sales and accessing the market more, hence, increased gross revenue and profit (Valeri &
Danielis, 2015 p.48). The company is also improving its product like enhancing the phones’
speed, camera, screen, and battery. This current strategy is working for the company. However,
penetration into the market alone is not enough. The company needs to expand its market as well
as the attainment of more sales and profit.
Market expansion strategy
The company will adopt a growth strategy (market expansion regarding increasing more
stalls or distribution channels in the market) because its growth has picked in its existing
distribution channels. The reason that informs this choice is the fact that the company
understands that for it to succeed it needs to dominate the market by making its products not only
available and affordable for customers but also accessible (Grant, 2016). The strategy is essential
for the company which is seeking to increase its sales profit to $90 million; market share by
revenue to 23%; and a target sale of 200,000 units. It will identify other destinations in the USA,
Mexico, and Canada where it does not have a distribution channel. The company has the
capacity and potential to introduce new channels. It will focus on ensuring that its product
appeals to the new customers in the untapped market. It will make considerations on where the
customers are and engage them using a specific message as far as branding is concerned. The
company has the financial muscle to fund this strategy cognizant of the possible disappointment
and risks.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Valeri, E., & Danielis, R. (2015). Simulating the market penetration of cars with alternative
fuelpowertrain technologies in Italy. Transport Policy, 37, 44-56.

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