TED (Technology, Entertainment, Design)

TED(Technology, Entertainment, Design)

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TED’sCorporate and Business Strategies

TED’sMission and Goals

TEDis a non-profit organization driven by the goal of spreading greatideas in the best way possible. The company aims to make significantideas accessible to as many people as possible. TED believes thatgreat ideas are a key factor that changes people’s attitudes, theirway of thinking and ultimately their lives. To achieve the primarygoal, the company strives to achieve its mission which is spreadingideas. TED is an international organization that welcomes people fromall over the world seeking to enhance their knowledge andunderstanding of the modern world. TED aims to be an efficientorganization that spreads significant ideas through conferences andtalks by most brilliant scholars.

TED’scorporate strategy

TED`scorporate strategy lays emphasis on design, quality of product andattention to detail. The company ensures that its services aredesigned and delivered passionately and skillfully to meet customers`expectations. TED constantly reviews its collections to ensure itanticipates and appropriately reacts to emerging trends to meetcustomer`s expectations. Its main strategy is to spot foropportunities to expand its market and customer base. TED has threemain channels of distribution: retail, wholesale and licensing. Foreach new opportunity arising, the company evaluates a brand thatappropriately matches it to enhance margin led growth. TED strategyis to ensure they develop appropriate brands and deliver them to theright market to enhance performance and growth. TED has expanded itsoperations to overseas markets. The main strategy is to developgrowth in the already established markets through excellent servicedelivery and quality brands. Also, TED is keen in identifyingemerging territories for expanding its operations. To expand tooverseas markets, TED evaluates the new markets and then diversifiesits services and brands to fit the new market. Before entering a newmarket overseas, TED ensures that it is familiar with all the factorsaffecting business in such markets to guarantee smooth businessoperations. TED seeks homogeneity before entering new overseasmarkets. By seeking homogeneity means that TED looks for overseasmarkets that share some similarities with the home markets. TED’sstrategy is to identify overseas markets that will present fewerdifferences and challenges to make it easier to execute itsoperations.

TED’sstrategy implementation to date

TEDwas developed in 1984 by Richard Saul Wurman, who aimed to implementa strategy that would integrate three fields: technology,entertainment, and design. The initial attempt to implement thestrategy failed since it did not gather the expected crowds needed toraise enough funds to run the organization’s operations. Six yearslater, Wurman and Harry Marks came back to the market and this timeround, the world received them overwhelmingly. In Monterey,California, TED conference became an annual event, attracting agrowing many people across many nations, from different areas ofspecializations. TED’s initial strategy was to organize aninvitation-only event, through which it could spread great ideas toattending audience, who would then spread the greatness of thecompany through word of mouth. Therefore, initially, TED did notinclude advertising as a strategy to expand its customer base.

Astime passed, TED attracted a more diversified audience ranging fromscientists, philosophers, musicians, religious leaders, to name but afew. Its growing popularity attracted media entrepreneur ChrisAnderson, who struck a deal with Wurman in the year 2001. Anderson’sSapling Foundation acquired TED in the same year. After this majoracquisition, TED`s strategy implementation became more aggressive anddiversified. Anderson developed and implemented a strategy that wouldenable the company to expand its operations beyond Monterey. Thestrategy focused on reaching out to the most interesting andinspiring people on earth and gave them the chance to share theirpassions and transform people`s lives. Up to date, TED`s strategyremains focused on identifying new talents from diverse disciplinesand developing them to reach out to as many people as possiblethrough talking and sharing their experiences and knowledge.

TED’sstrategy changes over time

Initially,TED strategy was an invites-only event, through which the selectedspeakers would share great ideas on various topics with the attendingaudience. However, the strategy has changed with time, with thecompany embracing strategies such as the use of digital platforms andmarket diversification. In the year 2006, TED partnered with Methodand developed a new strategy focused. Method’s new strategy focusedon opening up TED’s distinctive content to more people anddistinguishing the viewing experience. The strategy has seen TEDbecome one of the most popular video sites on the web worldwide. Currently, TED strategy embraces the emerging technologies such asonline conferences, YouTube, and other social media platforms tospread their ideas to as many people as possible.

TED’sgeneric competitive strategies such as differentiation, low-cost,focus, etc

Sinceits acquisition in 2001, TED has embarked on strategies such asdifferentiation, low cost and focus to gain competitive advantages inthe highly competitive markets. From the year 2001 to 2006, TEDimplemented various differentiation strategies as explained below:

  • TED diversified to another brand known as TEDPrize, an event that offers its winners one wish to change the world.

  • TED established a sister conference by the name TEDGlobal that aimed in reaching out to more people in other regions outside Monterey. TEDGlobal focused on expanding customer base and making TED not just a regional organization but a global one.

TEDhas been criticized for its high fees for its talks and conferences.However, it is important to point out that it has implemented variousstrategies to lower its prices. TED has embraced social mediaplatforms through which TED’s best content is released for freeonline. Programs such as TEDActive, TED Fellows program, TEDx andOpen Translation Project have all been implemented to create freeaccess to TED’s contents. Recently, TED implemented a program knownas TED Radio Hour, a&nbsppartnershipthat releases ideas and stories from TED Talks to public radiolisteners at no cost.

Functionalstrategies that help TED in achieving competitive advantage such asefficiency

TED’shas several functional strategies that are customer-focused toachieve customer satisfaction and a sustainable competitive advantagein the highly competitive markets. One of the TED’s strategies thathave helped in achieving efficiency is building of self-managedteams. TED employees are grouped in teams depending on there are ofspecialization, and these teams manage themselves. Self-managementteams is a strategy that encourages innovation and talent growthleading to efficiency. TED`s employees are constantly trained toacquire skills needed to meet the ever-changing customer needs. TEDhas reaped the fruits of investing in employee training, throughimproved efficiency and good performance. One of the TED’sstumbling blocks to achieving competitive advantage has been highprices. However, TED has implemented pricing strategies that embracelow cost to attract as many crowds as possible and gather a largecustomer base in the global market.

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of TED’s global business strategy

Currently,TED is a one of the most successful global companies focused onspreading great ideas to as many people as possible. The company’smission is spread ideas to change people’s lives and transform theworld. Initially, TED’s strategy did not embrace strategies such asonline marketing. Upon its acquisition by Anderson’s SaplingFoundation in the year 2001, TED started diversifying and becomingaggressive to expand its customer base. TED implemented amarket-oriented strategy aimed at expanding the brand beyondMonterey. TED strategy has changed with time to match with thechanging market trends. To meet customer expectations and ensuretheir satisfaction, TED has embarked on online platforms to spreadits contents to larger crowds compared to invite-only conferences.

Intoday`s highly competitive markets, global companies are forced toimplement strategies focused on diversification, focus, and low cost.For many years, TED has been cited as one of the most expensivecompanies in terms of pricing. As a result, the company hasimplemented various programs such as TEDActive, TED Fellows program,aimed at making TED prices lower and allowing access TED contents atno cost. Apart from pricing, other strategies such as employeetraining and self-driven teams have been implemented to enable TEDgain competitive advantage over its rivals. Currently, TED`semployees are not only efficient in what they do but also strive toachieve the highest performance to boost their images as celebritiesand at the same time boost the company`s performance.

References

Heizer&amp Render, (2011). &quotOperations Management, 10th Edition,&quotPearson.