Strategic Change: The case study of Daimler Chrysler

Table of contentsIntroduction 9The nature of strategic change 9The causes of strategic change 9The process of strategic change 10-The hardest step of change 11The differences between organisational change and strategic change 12Case study: DaimlerChrysler 13Porter’s five forces model 13Value chain 16DaimlerChrysler Competitive Advantage and Sustainability 18Competitive advantages: Generic Building Block 18Sustainable competitive advantages:The durability of competitive advantage 20Conclusion 21References 23IntroductionGlobalization results in rapid and constant business environmental changes. As a result, most organistions tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of DaimlerChrysler case study; whether the strategic change by merger bring them sustainable competitive advantage.

Nature of strategic changeThe causes of strategic changeTo be effective transformation organisation, a company needs to be ready for incessant change of outside and also inside circumstances. The factors which lead to strategic change in organisation are categorized as external environment, including competitor’s movement, governmental regulation, trade constraint, economic situation, information technology advance and market infrastructure: such as accessibility and cost of supply (Appelbaum et al., 1998); (Brock et al., 2005); (Douglas and Wind, 2001) and internal environment containing new vision and operation, bringing new technology in institute, new CEO, organisational culture, and merger and acquisition (Appelbaum et al., 1998). For example, multinational companies need to adjust the way they do business to fit with each marketplace in order to succeed their businesses by maintaining the global standard in terms of the components of marketing mix, such as quality of products. In contrast, some policies of management, such as human resource management, distribution procedure, pricing and advertising, must be adapted to agree with local law...