Strategic management of an organization entails three most important continuous processes i.e. analyses, decisions as well as actions. The analysis of the strategic management defines the strategic goals of the organization i.e. mission, vision as well as strategic objectives. Methods of strategic development entail three vital components including internal development, acquisition or disposal, and joint development or alliances. In this regard, in internal development method strategies are prepared by building on along with strengthening a corporation’s own competencies. It is regarded as a crucial method of strategy development. Similarly, the acquisition or disposal method includes a strategy of acquiring another business entity to ascertain an enhanced growth and market coverage. Moreover, alliances or joint development method aims to prepare cooperative venture in which both companies receive equal benefits from the operations (Sharpley, 2006).
The success of acquisition strategy process for the diversification of market also depends on various parameters entailing environment, capability as well as expectation. The environment is taken in this context for engaging a special focus on the co-competence of the organization that includes skills, capabilities, actions as well as processes to achieve the competitive advantages. The management of Facebook perceived that in the global market the usage of Smartphone is increasing day-by-day. Though in the Smartphones there are applications for the sharing of photos in Facebook but customers always desire something more attractive and from this parameter Instagram is the most favourable option for the users. The functions of Instagram are even more attractive than any photo sharing applications of the Apple Smartphones. Therefore, Facebook has taken the strategy of acquiring Instagram to derive competitive advantages in the global social media market. The expectation of the organisation is dependent on how much the strategy will be effective to condense the challenges and congregate the opportunities effectively as well as efficiently.
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