Strategic issues facing PPS Company and recommendations
PPS TV is an online service provider for peers. It has venture backing from Qiming Venture Partners and was under high pressure to gain in profitability and the user base of its services. However, for the company to achieve its targets, it had to choose what strategic decision was appropriate. The company is facing strategic issues as it aims at becoming the best online company in the market. China’s online service demand is increasing, resulting in many problems. The availability of a broad customer user base has made PPS strategize on revenue increment and validating their services. The issues that the company is facing are competition, technological improvement, diversity, uncertainty, and piracy in the online advertising market in China.
The online video market is experiencing an increase in competition among providers.PPS TV is facing competition from other online service providers. New providers venturing the market are coming up with advanced videos and better services; hence the company has to choose a strategy to deal with the issue. The firm should ensure that it understands the online market trend and all the tactics used by competitors to ensure that its customers are satisfied with their services and programs. Besides, company management should find out who the competitors are and what they are offering. PPS should also understand their strengths and weaknesses. The reason for this is to help in knowing the specific areas the company needs to compete and provide a base to differentiate itself. It should know its customers’ expectations because they change with time. It should understand its customers’ needs, that is whether they require the latest products, lower pricing, or flexible services.
The company’s management should elaborate on the reason as to why customers should buy from them, what services they offer. The image of PPS should have an update through the constant improvement of the website. Targeting a new market will increase the customer user base and spread the risk to competitors.
PPS Company is strategizing on licensing the technology platform to the countries that have a higher willingness to pay for the services and where the online advertising markets were more developed. The company’s plans can give the competitors a chance to copy its technology. It would lose its quality advantage in service provision and its worth. The firm should gather facts and information to understand what is occurring in the surrounding market in terms of economic change, competitors’ activities, and customer trends of their needs. It should also plan for possibilities, and the outcome of the strategy they use.PPS should identify the principal risks of the business and ensure it works on risk reduction. The process can be accomplished through debt reduction and increase their customers. The company should look for better opportunities through creativity.
The online market is experiencing technological advancement. The improvements result in improved customer services. The company should ensure that it conquers with the current trend in technology. Other firms are targeting improving their services to increase the customer base, and therefore PPS has to find a way of becoming the best in the market. Customers get attracted to a company that has improvements to its services, increasing profitability. The youth are downloading videos online at a cost that is favorable to them. Hence the management should ensure that the presentation of the services is in a way that they will be attracted.
Supply chain expansion
PPS Company is faced with the need of increasing its supply of services due to the increased youth population. Development of customer usage of the firm’s online services requires broadening of the supply paths.PPS is panning of increasing the number of countries it will provide services: mostly those countries with higher demand. Therefore the company’s management should ensure that they increase their supply considering the increase of users.
The act of the company applying new ideas to satisfy the customers’ needs and expectations more is fundamental. The company is working towards improving its customer services. The management should, therefore, ensure that they can handle all activities that will enhance new ideas. It should launch new programs and introduce new services in the business effectively. The reason for this is because, without proper communication and the right way of making decisions, few ideas implementation happens. Hence, PPS TV should embrace innovation and ensure that customers’ needs match it.
It is an act where the services’ infringement occurs. The company is facing piracy issues in terms of trademarks, copyrights and patent privilege. The increase in digitization results in more information release: this is the reason why the services are endangered and pirated information has increased. Customers are not able to differentiate between the actual and pirated information. The originators of the services face challenges because more informed online service developers are entering the market. Service pirates do not bear costs for the creation of new online services. The company should, therefore, ensure that all their services are protected for effective profitability. Counterfeiting is dangerous to the company’s expansion plans. Consumers purchase fake services unwillingly leading to loss of money on the company’s part. Besides, the firm should ensure that they contact web hosts to ensure that they take the content down soonest.
The firm’s online market has expanded with the increased demand by customers. The ability of the firm to improve their services in accordance to the technological advancement has made the customer usage to rise. The increased demand has resulted in the company’s need to expand their supply chains. Besides, the company is experiencing stiff competition from new and existing online services providers. It has planned to expand its business by involving those countries that have a high population and demand for online services. The company is required to develop strategies that have the potential of improving their business across many countries. Therefore, customer satisfaction is fundamental in the overall success of PPS online firm.
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