TechParts, Inc. manufactures electronic components for smart phones, laptops, ta

Question

TechParts, Inc. manufactures electronic components for smart phones, laptops, tablets, and heating/cooling systems. The majority (about 80%) of its sales are to smart phone manufacturers, but it also sells products to different customers in other industries. In fact, it recently launched a series of new products to be sold to the manufacturers of smart appliances (refrigerators, stoves, coffee makers, etc.) Tech Part's strategy: Produce and commercialize high quality components for smart devices while developing innovative solutions that enhance the performance of electronics. Classify TechPart's strategy using Miles & Snow's typology:

Explanation / Answer

Raymond Miles and Charles Snow suggest that business level strategies generally fall into one of four categories:

An organization that follows a prospector strategy is a highly innovative firm that is constantly seeking out new markets and new opportunities and is oriented toward growth and risk taking.

Rather than seeking new growth opportunities and innovation, an organization that follows a defender strategy concentrates on protecting its current markets, maintaining stable growth, and serving its current customers.

An organization that follows an analyzer strategy both maintains market share and seeks to be innovative.

According to Miles and Snow, an organization that follows a reactor strategy has no consistent strategic approach; it drifts with environmental events, reacting to but failing to anticipate or influence those events.

Tech Part's strategy: Produce and commercialize high quality components for smart devices while developing innovative solutions that enhance the performance of electronics.

TechPart's strategy falls into Analyzer Category, because it wants to protect its base of operations and to create new market opportunities.

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