1: (1) Market Penetration
Here we market our existing products to our existing customer groups. This means increasing our revenue by, promoting the product, repositioning the brand, and so on. However, the product is not altered and we do not seek any new types of customers. It involves an increase in sales of existing products to existing markets-selling more of the same to the same people. It has two methods; the first one is using the existing product break new market to penetrated, the other is offer new products to existing market to penetrate.
This strategy has the lower risk and don’t need more investment. It is suitable for the product being in the growth process, when the market is not saturated the business would growth in the market and increased volumes lead to economies of scale, especially for some business which not have some clearly goals and development strategies.
(2) Differentiation
It is the company would offer the unique products or services. Company could use the unique materials or research the new technology or new materials, then make consumers have the better and totally different products or services than competitors. If the AG Company wants to carry out this strategy, it should meet some requirements: First, AG Company need a strong research and develop their capability, the reputation of quality, innovation and technology. It would have the strength of marketing management and a team with high-level research staff, creative staff and high level skill staff. Then the business can make more superior difference than competitors. And the need of consumers will be various. The main competition is mainly about the product innovation.
（3） Cost Leadership
It involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. And it focuses on efficiency and lower cost. It means business reduce their cost and gain the competitive advantage about lower cost. The company in any market will gain lots of advantages from being able to produce at the lowest cost. A cost leadership strategy is appropriate when the company has its competitive advantages at producing efficiency, and the cost is lowest. It is useful for the product market share is much larger than competitors and the business that could reduce the cost of product through saving the materials, improve the technology, innovation of produce
（4） Diversification
This is where we market completely new products to new customers. There are two types of diversification. The first is related diversification and the second is unrelated diversification. Related diversification means that the company remains in a market or industry with which we are familiar. Unrelated diversification is where the company has no previous experience in the market or industry. This strategy could be used in a company with many competitors in the same industry. And its products are on the stage of market saturation, and not perform as good as other competitor. Then the company could choose to produce new products in a different industry. At last it will attract new consumers and increase the market shares.
2: Business strategy includes planning choice, implementation and evaluation that
guide the company to gain great profit and success. An inspired and clearly strategy would bring about successful, while a weak or unsuitable strategy may result the company astray.
Strategic choice is consider the competitive advantage, the influence from
environmental, the pressures, and then make a decision about the company future. In Alphabet Game, the strategy may be faced more choice. In this case, we could know that AG Company was a small-size company therefore they chose the cost focus strategy. The main difference between the business strategy and strategic choice is that strategic choice is a step of business strategy not a strategy. But it decided the best choice for organization strategy.
3:
Current
From the case, we could know that at the beginning, AG Company is a small-size company and lack of differentiation. And it only has fewer clients and low value manufacturing. The company began as three friends in 2001, house research, development and production which rank alongside any of its comparable competitors. According to the case, we could know that the cost focus strategy is most suitable for AG Company. They need cut down the cost by managing the value chain effectively. In AG Company, production cost have tripled in recent years with the introduction of next generation games consoles, the manager could make some decision about cut cost. Finding the new low-cost purchasing channel, purchasing the high quality materials cut the waste, saving the materials, improving the labor skill to improve the working efficiency.
As the matter of fact, managers are considering all the possibility to cut down the cost. With the development of industry, there will be more and more consumers’ demand variety. Therefore AG Company needs to make a change about the strategy to meet new challenges. Future
Consumers need expectations of appearance, movement and behavior has raised the bar in terms of graphic believability and authenticity. These make a request of new