The paper "Kone Plc Strategic Plan" is a good example of a management case study. KONE is one of the leading companies that manufactures and supplies escalators and elevators globally. The main commitment of KONE for the last one century was to understand the needs of the customers in the market, in that they aimed at supplying its customers with high-quality escalators, elevators and automatic building doors as well as providing the maintenance at an affordable price. KONE was founded in Finland in 1910 and it currently has 40,000 employees globally.
This company operates worldwide and hence digital marketing for its products is very essential in this error of time. Management of such a large number of employees who operate globally is very difficult. However, the use of digital to manage both employees and to reach the customers should be employed to make the work easier. Digital marketing does not require any individual physician to carry out the activities of the company. The information sends through the social media, for instance, each to many people within a very short time and hence KONE should give the digital marketing the priority number one in the year 2014-2016 strategy due to increasing use of social media by the customers. Key Issues There is a high demand for elevators especially in the developing countries due to the rising consolidation and urbanization.
The governments in the developing countries have given full support to the public housing and hence, there is a high demand for elevators. Many companies globally are aware of the rising market demand and hence, they sell their products below the normal cost for them to gain the share in the market.
KONE is, therefore, facing high market competition in that the market has minimal entry barriers, high margin, simple technologies and steady demand (Chitty, 2011). The rise of price competition is one of the main challenges faced by KONE being the third-largest company that supplies elevators. The launch of the MonoSpace by KONE has created many opportunities in the emerging economies like China and parts o Africa. The main threat facing KONE is its organizational structure. The employees have to multitask in order to meet the objectives of the company.
However, KONE’ s main strength is that it is old in the market and hence has many customers compared to the other competing companies. Its main weakness which is marketing can be solved by implementing the digital marketing strategy. Vision, Mission and Corporate Objectives KONE has pillars that make the company grow in a highly competitive market. Its mission and vision, as well as objectives, are well laid to give KONE the direction to follow to meet its target. 3.1 Vision statement Delivering the best people flow experience Corporate objectives The main corporate objective is to deliver people with the bet flow experience by developing and supplying elevators that enables people to move faster, safely, smoothly and without wasting time waiting in buildings in the increasing urbanization globally.
KONE’ s long term financial targets are to expand at a faster rate than the market and improve the working capital rotation globally (Chitty, 2011).