Arch Wireless Inc Case Solution

The Harvard Business Review published a case study that primarily focuses on Arch Wireless Inc. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Arch Wireless Inc has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Arch Wireless Inc using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Arch Wireless Inc faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Arch Wireless Inc to ensure that the company is able to respond to all the changes in the macro-environment. This is because Arch Wireless Inc cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Arch Wireless Inc will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Arch Wireless Inc.

• It is important for Arch Wireless Inc to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Arch Wireless Inc by impacting imports and exports.

Economic

• Arch Wireless Inc can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Arch Wireless Inc, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Arch Wireless Inc with more investment opportunities.

• The flexibility in the labor market allows Arch Wireless Inc to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Arch Wireless Inc to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Arch Wireless Inc to develop and align communication as well as marketing strategies accordingly.

• Arch Wireless Inc has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Arch Wireless Inc to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Arch Wireless Inc should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Arch Wireless Inc to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Arch Wireless Inc should adopt eco-friendly products to establish better relationships with the stakeholders.

• Arch Wireless Inc can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Arch Wireless Inc should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Arch Wireless Inc as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Arch Wireless Inc can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Arch Wireless Inc’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Arch Wireless Inc.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Arch Wireless Inc can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Arch Wireless Inc operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Arch Wireless Inc operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Arch Wireless Inc to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Arch Wireless Inc. The company can also switch suppliers for more reasonable pricing.

• Arch Wireless Inc can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Arch Wireless Inc industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Arch Wireless Inc can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Arch Wireless Inc can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Arch Wireless Inc operates.

• Expensive substitutes are available in the industry of Arch Wireless Inc, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Arch Wireless Inc operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Arch Wireless Inc operates has highly differentiated products, making it difficult for companies to win each other customers.

• Arch Wireless Inc can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Arch Wireless Inc can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Arch Wireless Inc to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Arch Wireless Inc has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Arch Wireless Inc to have a high level of customer engagement (Rizaldi, 2015).

• Arch Wireless Inc has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Arch Wireless Inc has a strong brand image in the market.

• A low-cost structure of Arch Wireless Inc has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Arch Wireless Inc is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Arch Wireless Inc has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Arch Wireless Inc on its research and development is comparatively less to other competitors of the market.

• Arch Wireless Inc uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Arch Wireless Inc operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Arch Wireless Inc. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Arch Wireless Inc can take it as an opportunity to expand its online presence.

• Arch Wireless Inc can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Arch Wireless Inc can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Arch Wireless Inc to expand its operations in multiple countries.

• Arch Wireless Inc can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Arch Wireless Inc, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Arch Wireless Inc to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Arch Wireless Inc.

• There has been constant pressure on Arch Wireless Inc to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Arch Wireless Inc.

VRIO Analysis

Arch Wireless Inc uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Arch Wireless Inc has a strong brand image and engages in corporate social responsibility.

• Arch Wireless Inc has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Arch Wireless Inc is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Arch Wireless Inc focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Arch Wireless Inc has been able to penetrate the market through its ability to raise large funds.

Rare

• Arch Wireless Inc operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Arch Wireless Inc has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Arch Wireless Inc has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Arch Wireless Inc is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Arch Wireless Inc is its high-quality products. These products have allowed consumers to make repeat purchases.

• Arch Wireless Inc operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Arch Wireless Inc to attract more customers.

• Arch Wireless Inc has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Arch Wireless Inc maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Arch Wireless Inc to explore more product development opportunities.

• Arch Wireless Inc is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Arch Wireless Inc that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Arch Wireless Inc to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Arch Wireless Inc to formulate effective strategies to achieve the company objectives.

Product

• Arch Wireless Inc has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Arch Wireless Inc to its customers. These distinctive products are not easily available at competitors.

• The products of Arch Wireless Inc are of higher quality, and thus, customers pay more prices for these products.

• Arch Wireless Inc designs products with traditional designs giving customers more product variety.

• Arch Wireless Inc offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Arch Wireless Inc to its customers.

Price

• Arch Wireless Inc follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Arch Wireless Inc for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Arch Wireless Inc to its customers.

Place

• Arch Wireless Inc uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Arch Wireless Inc globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Arch Wireless Inc has partnered with delivery service companies to distribute its products effectively to consumers.

• Arch Wireless Inc has also adopted an omni-channel distribution system.

Promotion

• Arch Wireless Inc uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Arch Wireless Inc to increase brand awareness.

• Arch Wireless Inc takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Arch Wireless Inc also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Arch Wireless Inc to attract and retain customers.

Value Chain Analysis

Arch Wireless Inc can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Arch Wireless Inc’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Arch Wireless Inc has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Arch Wireless Inc are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Arch Wireless Inc has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Arch Wireless Inc invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Arch Wireless Inc to effectively devise and build sales and marketing activities.

• Arch Wireless Inc offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Arch Wireless Inc has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Arch Wireless Inc has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Arch Wireless Inc uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Arch Wireless Inc has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Arch Wireless Inc are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Arch Wireless Inc can increase the capacity of its production so it can reach more of the customers in its existing market.

• Arch Wireless Inc can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Arch Wireless Inc in marketing and sales activities to increase the chances of successful market penetration.

• Arch Wireless Inc can design and develop a content that increases customer engagement within a particular marketplace.

• Arch Wireless Inc can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Arch Wireless Inc to penetrate the market.

• Arch Wireless Inc can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Arch Wireless Inc can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Arch Wireless Inc to mitigate the risk factors, and to gain customer groups of the market.

• Arch Wireless Inc can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Arch Wireless Inc to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Arch Wireless Inc for growth purposes. This will also take into consideration the cultural differences.

• Arch Wireless Inc should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Arch Wireless Inc.

• Arch Wireless Inc should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Arch Wireless Inc should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Arch Wireless Inc can come up with new improvements and modifications in the existing products to attract the market.

• Arch Wireless Inc should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Arch Wireless Inc to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Arch Wireless Inc can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Arch Wireless Inc can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Arch Wireless Inc, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Arch Wireless Inc can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Arch Wireless Inc should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Arch Wireless Inc should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Arch Wireless Inc should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Arch Wireless Inc is less affected by the new emerging competition in the industry.

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