Bp Plastic

7.0 STRATEGIC DIRECTION

In order to conclude the TOWS and SWOT analysis we will say that BP plastic holding needs to consider many aspect of its current way of doing business and try to combine its strength with the opportunities arising from the external environment. Besides that, the company must be aware of the weak side of its current strategy and try to minimize the risk coming from external threat.

Strategic direction is a course of action that leads to the attainment of the set goals of a company. It is also the vision of the company that is necessary for success in giving direction for employees to follow in order to achieve set goals. Setting strategic direction involves finding a target direction and committing to get there. It begins with developing a clear vision for a company thereby increasing its competitive advantage.

After the analysis on the SWOT and TOWS, and we found out have two strategies to solve the problem, which are market development and related diversification.

Market Development

BP plastic holding has to put more efforts in market development, which also means introducing present products and services into a new geographic area. They need to globalize the company in order to enable the company to expand their products to overseas. For example, advertising activities can be conducted in a new country such as Thailand, Singapore and others appropriate countries with the help of its new capital.

Related Diversification

BP plastic holding has to implement related diversification strategy with the help of advanced technology, it can improve BP plastic’s overall performance in competing against competitors specialized in product differentiation. Related diversification can diversify into new products and service lines can provide an effective path to fast growth, by selling more products to existing customers or establish new markets globally. R&D activities can be conducted to enhance the efficiency of product and to increase the productivity of BP plastic holding.