
Case summary:
The case explains whether Company T have a strategy. When compared to the stock price of Company T in 2013, it has been reduced by 50 percent in 2015. Hence, Person DC was removed from the post of CEO due to the disappointing performance. Person JD, who was a co-founder of Company T, returned to Company T as new CEO.
The ultimate goal of Company T is to increase the user base. Thus, they can be able to increase their revenue. They can charge advertisers for promoting their goods and services. The charge is based on the user base. Advertisements for individuals are based on the location, time, and user’s interest. The monthly users of Company T are 300 million and the monthly users of Company F are 1.5 billion.
To determine: The importance of good strategy.

Explanation of Solution
Determine the importance of good strategy:
The major mistake done by Person DC is the frequent changes in the strategy. Company T does not have a consistent strategy. Tech industry firms would have difficulty in crafting and implementing the strategy. They are doing business in the rapidly changing environment. It includes changes in the required skillset from the employees, preferences of the customers, technological capabilities, and competitive actions. Hence, it is important to have a good strategy which has the capability to handle these changes in the environment.
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