Assignment on Corporate Level Strategy

 Although business-level strategies have been defined in the previous assessment, there are some other aspects as well which must be considered by the Dropzone Delivery. These aspects include corporate-level, international, and acquisition strategies. These strategies have different objectives and help a firm in broadening its approach in the market. In this paper, these strategies will be explained and it will be determined which steps should be taken by Dropzone Delivery for being effective in the market.

Corporate Level Strategy

            CLS or corporate level strategy specifies different actions which should be taken by a firm for gaining a competitive advantage in the market by managing and selecting a number of businesses competing in different markets. It wouldn’t be wrong to say that a corporate level strategy is expected to help organizations in selecting new strategic positions and earning returns above the average profits and returns. For instance, Dropzone Delivery is currently concerned with delivering products and there might be a situation when the competition in market becomes high. In such a situation, it would become critical for the organization to attract customers and be consistent in achieving growth.

            In the previous report, it has been explained that the organization can rely on price differentiate to attract customers. However, there is a possibility that this strategy might not be as effective as it is expected to be. In such a situation, the firm needs to employ another strategy which can help in increasing sales. That is when Dropzone Delivery can consider CLS as it can help the firm in opening a new business. For instance, the organization has another option which can be considered by it for gaining a different market segment (Rothaermel, 2017).

Business to Business of Corporate Level Strategy

            Dropzone Delivery targets customers who want to deliver products from one place to another. In order to increase its approach and customers in the market, the organization can offer its services to businesses as well who need to deliver products to their customers. These outsourced services can help the firm in not only gaining a new customer segment but can increase its approach as well because not only people would be targeted but businesses would be targeted as well.

Levels of Diversification of Corporate Level Strategy

            There are several diversification levels including low levels, moderate to high levels, and very high levels associated with diversification. In general, it is important for a business to determine the levels of diversification before they can efficiently implement the CLS. In this case, moderate to high levels of diversity have been selected in accordance with the corporate level strategy.

            As explained above, it would be feasible for Dropzone Delivery to target businesses as well which need to deliver products to customers. For instance, those businesses should be provided with outsourced services which can be taken by them for reaching their customers and delivering products to them. Moderate to high levels of diversification means that less than seventy percent of revenue is derived from the dominant business and all the businesses seem to share distribution, technological, and product linkages.

            Although this level of diversification is suitable for the organization because of the same nature of new business, it would not be reached from the very start. For instance, the diversification levels would be low because the dominant business would be leading while the new business would not be so active in the market. It would, however, change with time and higher diversification levels would be reached (Mayer, Stadler, & Hautz, 2015).

International Strategy

            International strategy is necessary for each and every organization which has an objective of entering a new foreign market which can open up new opportunities for the firm to take in order to improve its sales and customer base. In case of Dropzone Delivery, the organization hasn’t implemented an international strategy as of now which means that it operates only in a specific region. Foreign markets are not targeted by the organization which indicates that some promising opportunities can be considered by the firm in foreign nations.

            For instance, the firm can operate in an efficient manner in countries where the competition between courier firms is low. Middle East and Asia are the regions where the competition is non-significant and both of the regions are increasingly gaining attention from different multinational firms. There are not many firms which offer courier services in nations which are located in these regions.

There are a number of entry modes which can be considered by Dropzone Delivery in these regions. However, joint ventures would be the most suitable because it can help the firm in not only combating the competition but taking advantage of the existing customer base. For instance, Skynet Worldwide Express delivers products in Oman and the firm can start a joint venture with it as it would help in decreasing the costs of the startup but will enable it to start making profits from the beginning.

Acquisition of Corporate Level Strategy

            Leopards Courier is one of the most recognized courier firms in Pakistan which delivers products throughout Pakistan. What makes it the best firm for acquisition is that the organization is not large and it has a wide customer base in the nation as well. In this case, horizontal acquisition is considered to be more appropriate because both of the firms operate in the same industry and their operations are also similar to each other. In this case, the only hurdle to the acquisition is environmental conditions and circumstances. It is possible that the tax paid to the government might be more in Pakistan than Dropzone Delivery’s local country (Marks & Mirvis, 2011).

            Overall, it can be said that Dropzone Delivery has the opportunity of opening a new business which targets different organizations which deliver products to customers. In addition to it, moderate to high levels of acquisition are considered suitable for the organization. When it comes to acquisition, Leopards Courier is one of the best options to consider. The organization works in the same industry and has an established customer base. Its acquisition can significantly help Dropzone Delivery in expanding the business and increasing sales. Meanwhile in Middle Eastern and Asian regions, there are a number of entry modes which can be considered by Dropzone Delivery. However, joint ventures would be the most suitable because it can help the firm in not only combating the competition but taking the advantage of existing customer base.

References of Corporate Level Strategy

Marks, M. L., & Mirvis, P. H. (2011). Merge ahead: A research agenda to increase merger and acquisition success. Journal of business and psychology, 26(2), 161-168.

Mayer, M. C., Stadler, C., & Hautz, J. (2015). The relationship between product and international diversification: The role of experience. Strategic Management Journal, 36(10), 1458-1468.

Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.