How to exploit opportunities- A learning
There are opportunities around the businesses but grabbing them timely and exploiting them are important, as time is money we all know.
The Timex watch company provides a good example of how strategic intent, external opportunities and threats, and internal strengths and weaknesses interact with one another in a sound strategic analysis. After World War-II during which the company produced timing devices for explosives. Timex became intent upon finding new opportunities to employ its strengths in designing and producing simple, cheap, and rugged mechanical timers. At the time, wristwatches were fairly expensive, delicate objects sold through jewelry stores. Timex saw an opportunity to change this and established the strategic intent of becoming a dominant competitor in the low end of the watch market with simple but reliable mechanical watches.
The firm was successful in using its strengths to take advantage of the opportunity and soon reached its goal. At the height of the firm’s success, one of three watches sold in the world was a Timex. However, a threat loomed on the horizon in the form of digital electronic watches. Initially, Timex ignore the threat, believing that digital technology would never be competitive with mechanical watches built around a mainspring. Based on this reasoning, Timex failed to address its weakness in digital and electronic design and production. For example, the company employed virtually no electrical engineers. When the cost of digital technology fell to the point that highly reliable electronic watches cost less than a now old fashioned Timex, the company’s position as the dominant global competitor was threatened.
Electronics firms stormed the market, and Timex spent years struggling to build comparable strengths in digital technology just to survive. Realizing that it would never again enjoy the industry domination it once had claimed. Timex developed new strategic intentions that took it into a number of new markets, such as personal computers. However, the firm has never repeated the near perfect alignment among strategic intent, internal strengths, and external opportunities that it once had in the wristwatch market.