Xavier Ibañez Laparra
What should e-Types do going forward?
The strategy formulation of any company should contemplate two sections; the Corporate Strategy,
which should choose the line of business to engage in. And the Competitive Strategy that sets the
framework for achieving success in a particular business.
The formulation of a strategy forces the organisations to examine the prospect of change in the
foreseeable future and to prepare for change rather than to wait passively until market forces
compel it. Analysing their competitive assets, opportunities, and being able to forecast a projection
of the results the own assets will get in the market.
Strategic formulation allows the firm to plan its capital budgeting. The formulation of a sound
strategy plans a number of actions towards a goal in a way to guarantee results that would be
difficult otherwise.
Strategy formulation for e-Types:
The corporate strategy.
“We crystallise big ideas to build strong brands. Brands that stand out and clearly communicate
what they’re all about. Brands that move the world forward.
Based on hard thinking, creative edge and extensive experience, we design that one visionary
idea. The idea that conveys the very core of your brand, inspiring action and guiding visual and
verbal communication that provides meaningful change for your business.”
Reading their own description at their website, we can define their customers. e-Types works in a
integral branding design with partner’s participation at every step and a work culture giving it all to
get the best for the client with a diversely expert workforce to create the “big idea”.
For e-Types to achieve business success it must concentrating on differentiation. A company who
pretends to “smash the world of design”, being a revolutionary design agency specialised in
building strong brands. However, it is important to remember that the success of e-Types will
entirely dependent upon customers valuing it’s designs above others.
Their strong capabilities in routine and processes are an important asset if the look forward in a
internationalisation scenario.
Mission statement.
It must be consistent with its business definition among the key elements: statement of corporate
values and philosophy, a statement of the scope and purpose of the business, an
acknowledgement of special competencies and an articulation of the corporate vision for its future.
Strategic objectives and performance goals.
Plan how to manage the operations, the edgy positioning of the company in the competitive
marketplace through their designs.
Strategic objectives like profitability, market share, return on investment, customer service level,
revenue size or diversification in additional services.
Timing must be clear. The timetable for business entry, exit, growth and downsizing, due their
business nature, their resources are intangible and human resources mainly, so the growth must
be well planned. The temporal coordination have to be contemplated.
Here should be stablished the quantitative targets to achieve after the forecast of the marketplace
and the company expectations.
Competitive (Business) Strategy.
It must fulfil its corporate goals pursuing a market niche strategy. It should address how the unit
plans to be competitive within its specific business market. The logistical issues must be
considered. Any location movement will require the employees and partners to follow the company,
the talent defining e-Types and the spirit cant be replaced easily. Some logistical issues to
consider:
Xavier Ibañez Laparra
• Role of each of the functional areas within the business unit and how to play in creating
competitive advantage in the new marketplace.
• Potential responses to prospective changes in marketplace.
• Has the new location the kind of companies e-Types want as a partners/customers?
• How to allocate the business unit's resources between its various divisions.
A review of the industry's structure for e-Types should evaluate factors such as:
• The size of the objective niche in the total market.
• The growth rate of the niche and the total market.
• Profitability of the firms in the industry.
• Forecast of the evolution of the industry. Whether the industry is producing at capacity or there
is excess capacity already in place.
• The entry barriers to the industry.
A fundamental part of developing a business strategy is to understand in detail who e-Types main
competitors are and where their strengths and weaknesses. Many industries have clear niching,
with each firm or group of firms avoiding direct competition through some combinations of product
differentiation or market segmentation.
Implementation of the business strategy.
The tactical execution, while crucial to the success of any strategy, is not a traditional part of the
formulation of that strategy. However, many firms have been successful in discovering successful
tactics and building their strategies about "what works.”
Review strategy’s effectiveness.
Measure performance and compare with the forecasts. Its important take reviews on a regular
basis to prevent hidden costs by updating the forecast after every review, and for taking the
measures required if the strategy is not going well. As often as required by changes in the industry.
E-types need to track the company's progress, or lack thereof, on the key goals and objectives
outlined in the strategic plan. E-types must be objective and flexible enough to realise whether the
strategy is or no longer appropriate as it was first conceived, and whether it needs revision or
replacement. In other cases, the strategy itself may be fine, but the communication of the strategy
to employees has been inadequate or the specific steps to implementation have not worked out as
planned. This evaluation and feedback of the strategy formulation, provides the learning foundation
for successful future strategies.
All the steps have to be considered, working towards creating a strategic bridge between goals and
specific operational targets or objectives.
The bad strategy can be a result of different factors:
• The result when many things are mislabeled as strategies or objectives.
• Bounded rationality and limitations of resources and cognitive ability.
• Homo economicus and political coalition as conflicts of interest.
• Managers who are often complacent and short-sighted.
A strategy involves the application of the strengths of e-Types as their creativity, brand
development, work culture, capabilities and routines, and specialisation, in a world with a start-up
culture on demand of the uniqueness, have to specialise in the niche of the revolutionary brands
and new breaking start-ups. Their different views are great on preparing this brands for a real
impact.
They own a highly valuable intangible and human resources, focusing in a marketplace with an
80% of competitors out of their league, passion and attitude inside the workplace and ability for
capturing the value of the resources.
A good strategy can be either simple or complex, even rare, but to be optimal needs coherence,
coordinating actions, policies and resources so as to meet the organisational objectives like
e-Types.
