strategic mgmt 2
Shinum
Title Title Title Sub-title
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Casio Education
Technologies A strategic analysis
Casio
DJ-120D
An introduction The tried and tested,
no nonsense
desktop calculator
that will never go
out of fashion.
$14.99
Low price – demand
stays high
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The Competition
• Not necessarily other calculator
manufacturers
• If you type in ‘calculator’ into google,
there is not one calculator brand on the
entire first page.
• Dying industry.
• Mobile phones, laptops.
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Ansoff Matrix – The product
strategic positioning
• Current position – Market
penetration
• Market development –
outside of offices
• Product development
strategy – accessing the
internet
• Diversification strategy is
the riskiest –
• They already make
watches.
• Telecommunication
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BCG Matrix – The product
strategic positioning
• Currently a dog.
• How do we make a star?
• High growth industry and
maintain high market
share.
• Strategic choices: vertical
integration, horizontal
integration, market
penetration, market
development and product
development.
• Breaking into the
telecommunications
industry.
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Ansoff
Current strategic stance
• Where are they? Existing – Existing –Market
Penetration
• Why? Calculators are used in education and have
been for a long time.
• Where should they be? Diversification
• Why? The higher the risk, the higher the reward.
• Current diversification from the calculator
• Keep the existing basic product to generate
consistent revenue, risk an expansive move to create
high rewards.
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BCG
Current strategic stance
• Where are they? Dog
• Why? Low market share, profitable for a long period of time.
• Where should they be? Star
• Why? Most desirable place to be.
• High growth industry, high market share, cash generator.
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Changes to the strategy stance
• Ansoff – Where should Casio be in order to make more money?
• Diversification – As the level of risk increases, the potential returns
increase
• BCG – Currently a cash cow. How do we make a star?
• Abandon the middle ground. Cannot compete with the scientific
calculators that laptops can do.
• Maintain the basic calculator that is more desirable for simple
calculations. Churn the consistent revenue.
• Invest in telecommunication and mobile networks.
• Use the current technologies to adapt the Casio watch.
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Justification of proposed changes
• Justify what we think the strategy should be.
• Fast paced global technological environment.
• Keep it simple.
• Barriers to entry to a wireless network are low.
• Low sunk cost of infrastructure.
• Well established brand name.
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Competition responses
One – Tech companies
• Create a basic calculator to compete with the steady income
stream Casio generates
Two – Mobile providers
• Move faster within the industry by investing more and always
staying ahead (releasing 5G first etc.)
• Could be difficult due to platform competition (Church & Gandal,
2004.)
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Thank you
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Bibliography
• Arora, A.K. and Raju, M.S.S., 2017. The effect of product diversification on the adoption and
implementation of activity based costing. Splint International Journal of Professionals,(January),
pp.8-10.
• Church, J. and Gandal, N., 2004. Platform competition in telecommunications.
• Gaver, W.W., 1991, April. Technology affordances. In Proceedings of the SIGCHI conference on
Human factors in computing systems (pp. 79-84). Acm.
• Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
• Zekiri, J. and Nedelea, A., 2012. Strategies for achieving competitive advantage. The USV
Annals of Economics and Public Administration, 11(2), pp.63-73.
• https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html
• https://www.casio.com/products/calculators/desktop/dj-120d
• https://expertprogrammanagement.com/2011/04/bcg-matrix-boston-matrix/
• https://blog.oxfordcollegeofmarketing.com/2016/08/01/using-ansoff-matrix-develop-
marketing-strategy/
• https://world.casio.com/media/files/ir/annual/annual_2018.pdf