Strategic Analysis of a Service Firm: Web Development & Open Source

ImageX Media is a web design and development firm that specializes in integrating open source content management software for small to medium size businesses. In this context, human resources and research & development (R&D) play key roles in the firm’s strategy. The problem is that the firm lacks a clear strategic focus that generates a defensible competitive advantage. The literature suggests that most firms must decide whether they will pursue a cost leadership strategy, a differentiation strategy or a focused strategy. The project intends to analyze these different strategic alternatives and recommend a strategy that would best align with ImageX Media’s goals. Having selected a strategy the firm will be able to decide how to pursue effective human resources and R&D strategies. More specifically, the firm will be able to decide to what degree they should leverage their senior personnel with junior personnel. As well, the firm will be able to choose where to focus its R&D. The overall findings suggest that a cost leadership strategy would enable the firm to best meet its goals by highly utilizing junior personnel and focusing its R&D on process improvements.