Page 12 - MCS August Day 1 Suggested Solutions

CIMA AUGUST 2018 – MANAGEMENT CASE STUDY

EXERCISE 1 (continued)

MONTEL must ensure that it matches its strengths to any opportunities identified when
considering future strategic development options. Failure to do so will leave MONTEL exposed to
unnecessary risk by attempting to achieve strategic options without the resources or
competences to fulfil those options.

In addition, failure to address and remove weaknesses may leave the organisation exposed to
future threats. This is particularly relevant for MONTEL given the increasing technological and
social concerns and the resultant increase in complexity associated with camera manufacture. As
with any business, ultimately customer demand governs success and enhances the
manufacturer’s brand.

Customers have considerable choice as to which camera they choose and although the
professional market is “sewn up” by the two main providers, MONTEL will need a detailed and
continuous flow of information on customer demand, social trends, technological developments,
environmental issues and spending patterns etc. to ensure that the right product is available at
the right time and in the most cost effective format.

Alternatives available to MONTEL are:

 Market penetration. MONTEL could opt to maintain or increase its share of existing markets
with existing products but in a fast changing environment, with the industry having to meet
increasingly innovative technology and facing diminishing sales in key markets, this is
unlikely to succeed. The industry is used to being at the forefront of technological change
and MONTEL will need to maintain an innovative approach to survive e.g. by responding to
environmental, regulatory and socio‐demographic trends and enhancing their products as
appropriate.
 Product development. MONTEL could develop strategies based on launching new products
or by enhancements to existing products to its existing markets e.g. continuing to innovate
with new smaller mirror cameras or accessories e.g. Canon launching the EOS M50, its first
4K mirrorless camera..
 Market development. MONTEL could develop new markets for existing products e.g.
expanding its presence in developing countries such as China, Asia or any of the top ten to
include Japan, India and Germany.
 Diversification. MONTEL could launch new services into new markets e.g. health care or
industrial equipment. This could be achieved via a joint venture with an existing provider, a
competitor, or even a consortium of companies. If MONTEL has a range of insufficiently
profitable products it might find it makes the most strategic sense to establish a joint
venture with another company to provide them, or create an alliance to facilitate.

Each of the above suggestions would need to be evaluated before implementation which entails
considering each strategic option in terms of its feasibility and fit with the strengths and core
competences of the business.

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