WEEK 21

Week: 21 

Emergent strategy              

The formation of result that was not initially accepted or planned is known as emergent strategy. It is outcome from constraint action taken by an organization in order to run smoothly and routinely. The organization should be ready for unintended outcomes so that it can easily adopt the constantly changing condition and can be more flexible.(k Dave 2011)

Benefit

a.       It is suitable when market is unpredictable.

b.      It directly response to market force in regards of customer taste and competitor business practice.

c.       The strategy reflects the real market.

d.      If implement successfully it reflect winning strategy.

e.       It has unforeseen benefit.

f.       Encourage to use informal communication network to increase creative thinking and innovation.

g.       Allows organization to develop logical solution and experiment to the problem that are not expected in long term plan.

Drawback

a.       The strategy has no plan less structure.

b.      Unexpected problem can be create

c.       If not analyzed properly it will create huge damage for business.

d.      Doesn’t provide genuine alternative.

(Case Study)

Answer a

Honda’s entry strategies in the US were both deliberate and emergent. In time in entering in US it was more deliberate strategy whereas to acquire a market share they adopt emergent strategy to get customer attention and trust. US market very new for Honda so having lots of trial and error they got lot of knowledge and experience of US’s customer taste. They knew the different season for motorcycle market. After failing in distribution channel they adopt emergent strategy to deal directly with retailers. At the time when there was misconception with motorcycle riders they introduce and promote the nicest people campaign which was a big hit. It all was due to emergent approach to introduce their larger motorcycle to US market but get lots of negative feedback. So they took emergent approach and change design and parts in motorcycle to deal with problem. And also huge success in supercubs proves Honda as an emergent strategy in US market.

Answer b

For Honda both accounts seem accurate. Deliberate approach shows fact and evidence for entering in US market. Whereas emergent approach helps to acquire a market share in US. Both failure and success create experience for Honda.

Answer c

Yes, Honda’s entry strategy demonstrates the characteristics of logical incrementalism. “Logical incrementalism is the development of strategy by experimentation and learning from commitment rather than through formulation of total strategies.” Honda was new in US market and through lots of fail and experiment. Honda was able know the customer taste. At the time there was misconception among people with bike riders so they change the concept with campaign “nice people”. Honda also get lots of negative feedback regarding the machines of the motorcycle. With lots of improvement they were able to satisfy their customer. And also their test of 50cc light bike in market was failure. All this trail and experiment make them a very good brand in whole world.

Answer d

If Honda adopt a formalized strategic planning approach than it wouldn’t be a success as it is now. Through the case, we know that Honda have lot of good and bad experience and had adopt it with situation. So formalized strategic planning needs more time and resources which would be wasted and that would backward the business from success

Reference

1.      K. Dave, (2011), Mastering Strategic Management, (online) http://catalog.flatworldknowledge.com/bookhub/3085?e=ketchen_1.0-ch01_s02  (Accessed on March 15,2013)