Dajiang’s Strategic Management and Strategic Competitiveness
Dajiang (DJI) Company is a multi-national leader in the commercial drone manufacture industry. The company’s headquarters are in Shenzhen, China and was founded by Frank Wang in the year 2006 (Hongjia, 2017). The firm has redesigned and shaped both the external and internal commercial environments to enhance its profitability and triumph. The company has invested in the creation of a broad range of aerial photography and videography products that meet the needs of a diverse society (Hongjia, 2017). This is centered on the production of high quality and affordable brands that meet the customer’s expectations. This paper focuses on the strategic competitiveness and management tactics of the company. It also gives an analysis of technology and globalization and how this has impacted the industry. The resource-based and industrial models are also employed to show how DJI might earn excellent results. The vision and mission statements impact to the success of the corporation and also the stakeholders’ impact is also depicted in this work.
Impact of globalization
Changes in technology and globalization have transformed the way the business is done in the world today. It is evident to say that technology is a major driving force to globalization. This can be attributed to improved infrastructure and communication. Globalization refers to the escalation of links, interaction modes, and flows that interconnect the globe (Morgan, 2015). This concept is quite diverse in its meaning. The emergence of globalization has resulted in a number of both challenges and opportunities. DJI has been able to use this strategy to its advantage. Changes in globalization have helped the company to achieve across the border retailing by having global sourcing, logistics, and pricing. Since the video and photography sector is rapidly evolving, there is high demand for high-quality equipment that will be affordable and stand out of the crowd. DJI has used this globalization strategy to tap into other markets that are affiliates of their primary industry target such as filmmaking (Hongjia, 2017).
Globalization has also helped DJI in the identification of potential areas for specific areas. Having done a research of the consumer base and its needs puts a company way ahead of its competitors. The company has exploited this strategy since the risk associated with foreign liability does not impact their market base as their products are globally recognized and accepted. Entry into the global markets is not an easy task, but DJI’s innovation has taken its toll as new and efficient drones are more preferred, and the other good thing is that that the quality is well matched with the price. Globalization has also helped DJI to diversify its brands to satisfy the growing demand in the video, photography, film and drone market (Morgan, 2015).
Impact of technology changes.
Technological changes have improved DJI by aiding in marketing its products. DJI has employed tactful marketing strategies using various digital platforms such as YouTube and other social media sites. It has also reached out to a lot of consumers using search engine optimization (SEO) which also helps in the diversification of its brands (Hongjia, 2017). The firm’s success can also be attributed to technology as it conducts market situation analysis and also requests for feedback from the clients and potential customers to deliver quality products as per their preferences.
The firm has enhanced its competitive edge by focusing on the use of latest and cutting-edge technology in its brands and also try to balance the prices with quality to increase profitability. In its drones, it incorporates global positioning systems and sensors that aid in seamless control of the devices. In the further exploitation of this competitive edge, the firm has gone out of its comfort zone to delve into the camera industry to deliver comprehensive products (Morgan, 2015). This is evident in its development of robotic gimbal arms that have also been adopted in filmmaking. Changes in technology have helped DJI come up with innovations that keep up with the changing trends in the drone industry. They also use technology to create features that help their products have a variety of uses such as in weather forecasting and monitoring, creative photography, landscaping and mapping, filming and navigation among other areas that other manufacturers have not been able to tap.
DJI’s resource-based model.
The model focuses on the firm’s internal environment and how it influences success and profitability (Hongjia, 2017). This is based on the presence of capability and resources. This, in turn, affects the external environment including analysis of markets, customer preferences, political, social and economic aspects and competitor analysis. DJI has developed a strong network of research and manufacturing schemes that help in the development of high-quality brands. The company also has a robust financial resource and focuses more on the talent of its employees.
DJI has heavily invested and emphasized in research to develop unique products tailored to suit their customer’s preferences (Hongjia, 2017). They also invest in the development of multiple products for different target consumers and ensure that they frequently introduce new products in the market. They have used this model to create an attractive industry that earns the firm above-average proceeds and also lead to a competitive benefit. They also make sure that the in-house ideas result in products that are costly to imitate and unique thus having a global presence. This will help in taping more diverse markets as they have tapped into the opportunities and have laid out strategies to limit risks.
Influence of the vision statement.
DJI’s mission statement has impacted the company’s success by the fact that it ensures that individuals using their products can do more. This is evident since the enterprise manufactures revolutionary products driven by the needs of the customers. DJI has stood out to achieve this by being the top in the drone industry.
Influence of the mission statement.
The company is tailored to spark up creativity to all its users that will lead to groundbreaking changes. DJI ensures that they live up to their mission statement by providing clients with not only the products but more improved versions of the same and provide constant feedback to their customers. This helps them to make their products more efficient and suited to the customer’s preferences. This is shown by the way it incorporates new technology into their goods to enhance performance.
Impact of stakeholders in the firm’s success.
Capital market investors such as creditors fund the business in its ventures in the expectation of positive outcomes from them (Morgan, 2015). The company does not disappoint and returns adequate profits to their sponsors. Through this approach, the company can finance the manufacture of new products and conduct research. Product market stakeholders include suppliers and primary clients that influence the company’s performance. By employing an efficient supply chain, DJI fulfills the prospects of each shareholder thus allowing it to attain profits and success globally. Consumers of DJI products demand reliable products at reasonable costs (Morgan, 2015). The competent relationship developed by the firm is used to create and deliver affordable, timely and customized products. Organizational stakeholders include the management and the employees also contribute to the success of DJI by working together to develop high quality and affordable products that have garnered global attention.
It can be analyzed from the above discussion that DJI considers all the four views of value creation namely stakeholder approach, resource-based models, technology and globalization changes enables it to develop competitive advantage and capture substantial opportunities in the market.
Hongjia, X. (2017). Techno-entrepreneur from Emerging Economies: A case of DJI in Global Competition and Innovation. In United States Association for Small Business and Entrepreneurship. Conference Proceedings (p. 1178). United States Association for Small Business and Entrepreneurship.
Morgan, D. (2015). China’s DJI drones flying high among US companies. Thomson Reuters.