Movil Express is a Telecommunication Company, which focuses on growing through tapping into the expanding market of video streaming, internet voice and high definition cable television. However, it can only achieve these, if it has the correct infrastructure in place. Together with market ideas, it will be possible to overcome risks, which could escalate and become crises (Rouse par 2). To deal with these challenges, the company needs a crisis management team.
Crisis management encompasses identifying likely crises, and adopting measures to mitigate their severity and putting in place a recovery course (Crandall and Parnell et al.10).
It conducts landscape survey and identifies looming crises, which could hit the company either internally or externally. The team then develops a strategic plan to counter the crises if they are inevitable (King 236). Notably, the team carries out landscape survey in two phases, which are internal landscape and the external landscape (Crandall and Parnell et al. 15).
This survey focuses on factors, within the company’s control and that the crises could be from within. These crises mainly stem from internal factors (Crandall and Parnell et al.12). An example would be inability of the company to pay for the infrastructure from Cisco. To expand their services, they need more equipment from Cisco. The firms target to lower the cost of voice data for its customers. However, a possible crisis is the resistance of customers to change, opting to embrace their current providers.
This covers factors beyond the control of the company and whose crises pose a greater challenge to counter. Nonetheless, it is possible to lessen the impact of the crises (Crandall and Parnell et al. 13). A possible external crisis for Movil Express is delivering inferior services to their competitors in the market, as it has no control over their ability to advance in technology. Another factor is the sociological structure of the company’s target market. Most clients are young people who have interacted with technology throughout their lives. While this is the case, older population, which has stronger purchasing power, is likely to be left out of consideration.
Movil Express has several weaknesses, which could lead to crises in the end. They include a small market share and lack of proactive approaches when penetrating markets with new products. This may cost the firm as the competitors excel. Other factors are government surveillance, which make customers apprehensive, inflation, and high interest rates, making it hard to service debts.
To address these challenges, Movil has to get money from trusted lenders and Cisco as soon as possible and get discounts. The company also requires intensive marketing campaigns to increase its market share. Baseline research on potential markets is also necessary to master the culture of the population and get an overview of the competitors’ tactics. This will help in developing unique products to take over the market.
Crandall, William, John A Parnell and John E Spillan.Crisis management in the new strategy landscape. Los Angeles: SAGE, 2010. Print.
King, Granville, I., II. “Crisis Management & Team Effectiveness: A Closer Examination.” Journal of Business Ethics 41.3 (2002): 235-49.
Rouse, Margaret. “What is crisis management? – Definition from WhatIs.com.”Whatis.techtarget.com, 2013.Web. 28 Feb 2014. http://whatis.techtarget.com/definition/crisis-management
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