You may not have heard of GYU - they are a new client of ours. GYU is

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Question:

You may not have heard of GYU - they are a new client of ours. GYU is a large company which manufactures mobile phone handsets. This is an extremely competitive market and GYU has recently been struggling to keep up with other companies in its sector. This is due to the fast-paced nature of the market. New handsets with increasingly complex features are constantly being launched by competitors and the directors of GYU are concerned that the range of handsets manufactured by the company are beginning to look dated.

This has caused a sharp fall in GYU's cash balances and in response, for the first time in its history, GYU has had to cut its dividend. The fall, which was around 10%, was met with an angry response by shareholders and GYU's share price has fallen significantly since the announcement.

While GYU's position appears weak, it is still seen as a market leader in the production of mobile handset software. While the reviews of its handsets are no longer entirely favourable, most customers agree that the software on the mobile phones is significantly superior to that produced
by any of GYU's competitors.

I'm about to have a meeting with GYU's directors for the first time and I think they will ask me to advise them about the three different approaches to strategy that GYU could use and which is the most appropriate for their business. I'd like you to email me back in the next fifteen minutes and tell me your thoughts on these matters.

Your task:

Reply to the manager as requested.