Aggregation Strategies on Achieving Economies of Scale @Motorola

Question: Aggregation strategies focus on achieving economies of scale or scope by creating regional or global efficiencies; they typically involve standardizing a significant portion of the value proposition and grouping together development and production processes." (de Kluyver, 2014)? Answer: Aggregation Strategy for Motorola Human Resource: The management of Motorola has to engage skillful and experienced personnel that can help in enhancing the operation and performance of company and remaining ahead of Nokia in terms of sales and brand value. The human capital can help in updating the phone features and making necessary changes that can increase sales in India as well as in other nations. Differentiation: Motorola has to offer different features and apps in their phones along with high processor speed so that the smart phones of Motorola can beat the smart phones of Nokia in terms of sales and revenue. Therefore, the product differentiation can be effective not only in increasing sales but also it can help in increasing the brand positioning in the market. Reasonable price: The price of smart phone of Motorola has to be reasonable so that people can afford phone at least cost with better features. The price of some Nokia phone is almost INR20000 which is too expensive for the middle income group people. Therefore, if Motorola keeps its price at affordable rate then it can help in increasing the sale and better market share. Price Standardization: The Motorola Company should not charge different price from one nation and different price from other. This will affect the brand image of the company and customers may feel cheated and thus it can decline the sale and earnings. Therefore, Motorola has to implement equal price at all regions for their phones and it will be valuable to gain edge over Nokia. Partnership strategy: In order to make then brand popular, several organization develop partnership business via sharing resources, skills, money, loss, profits, etc. Joint venture is one of the key strategies of making partnership with the other company. This question demonstrated the partnership business between Toyota and BMW. Both the company is joint venturing with each other and plans to develop a sport car in the market. Both the company is world largest automaker. With joint venturing the business, BMW and Toyota tries to create lightweight materials, fuel cell system, and lithium air batteries based sport car in the market. In 2011, both the company makes an agreement with each other and starts to develop the project of lithium air batteries and fuel cell system that save extra fuel. Apart from that, Toyota and BMW both is setting up strategy for investing more on research and development in terms of increasing technology that deals in sharing spending on vehicles. This will allow in recouping investment quicker in order to use the developed technology in more models. The European Chief said that these technologies are more expensive as well as effective that helps in sharing costs in a better way with her company in future. Motors Co. and the PSA Peugeot Citroen is the new compact model after joint venturing with each other by BMW and Toyota. In the Peugeot model, BMW shares the gasoline engine. Apart from that, both the company sharing their resources made Mazda RX-7 model that is the new rumors crop including alarming frequency.