Strategy Composition

This report provides strategies to achieve and sustain a competitive market profile of a customized furniture manufacturing company. It includes SWOT analysis of competitors, cooperative and partnership strategies, and balance scorecard.

STRATEGY COMPOSITION
Strategy Composition
Student Name:
Student ID:
University Name:
1

STRATEGY COMPOSITION
Contents
Introduction.................................................................................................................................................2
Discussion...................................................................................................................................................3
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6
2

STRATEGY COMPOSITION
Introduction
According to Finoti, Didonet, Toaldo & Martins (2017) an effective marketing strategy for all
organizations is widely perceived as a decisive road map for overall business. Firms develop and
establish marketing strategy that is coherent and well considered to ensure their businesses are
promoted and to reach out to right type of customers besides précised resources allocation. The
key purpose of this report is to compose, prepare and recommend strategies to achieve and
sustain a competitive market profile of case scenario company which is into customized
furniture manufacturing.
Discussion
1. The scenario company has many competitors in the global market. According Mirzakhani,
Parsaamal & Golzar (2014) HNI and IKEA are top 2 global competitors in market. For better
understanding about both competitors a SWOT analysis has been conducted.
2.
SWOT Analysis of IKEA
Strengths
At $11.9 billion presently brand value of IKEA
is 46th in world.
According to Genoveva & Siam (2017) biggest
strength lies in its DIY kind of products, which
are famous amid customers
Weaknesses
Owing to operations in multiple countries
IKEA often lands into local troubles. Recently
by issuing an all men catalogue in Israel
mocking their ultra-orthodox Jewish
community gave IKEA negative publicity.
Same standards are not followed across
multiple countries where it operates thus,
creating problem. Product portfolio is not
completely replicable in all locations and
scalable.
3

STRATEGY COMPOSITION
Opportunities
Consumers growing demand of eco-friendly
products can help in growth strategy.
It should target and focus on Indian and
Chinese markets, whose huge populations
needs unique solutions for addressing their
space usage problems.
Threats
According to Genoveva & Siam (2017)
products are copied by many local/regional
small players forcing them to innovate and
update continuously.
Products prices can affect badly because of
changes in government laws and tax policies.
SWOT Analysis of HNI
Strengths
HNI’s ability to enter into newer markets has
helped it in generating new revenue stream.
It has successful track record in product
innovation.
Weaknesses
Insufficient investment in new technologies
compared to its scale of geographical
expansion.
Gaps in product range gives foothold to new
competitors in market.
Opportunities
According to Genoveva & Siam (2017) new
technology will provide an opportunity for
practicing differentiated pricing strategy in
new markets.
Green drive worldwide can also open an
opportunity for procurement of its products.
Threats
Continuous rise in raw materials prices can
affect its profitability.
Irregularity in supply of innovative products is
also a threat
4

STRATEGY COMPOSITION
3. According to Dadzie, Amponsah, Dadzie & Winston (2017) IKEA and HNI are direct
competitors of scenario company because both excel in offering customized furniture to
customers besides competing in similar markets.
4.Meanwhile cost effectiveness is their competitive advantage.
5. The scenario company can form cooperative strategy with HNI through joint venture type of
strategic alliance where same quantity of resources can be committed by both participants for
achieving competitive advantage.
6. To build a competitive market profile competitive positioning strategy can be used by scenario
company products which can be unique from its competitors, providing value and
differentiation of brand from alternatives. Also partnership strategy with local firms can be
used which can be influenced by local market profile, customer segments, competitive
analysis and methods to deliver value.
7.Balance scorecard is strategic planning and management system used by firms for
communicating what is being aspired to be achieved. It also aligns routine work with strategy,
prioritizes projects, products/ services and ensures progress measurement and monitoring of
strategic targets.
Conclusion
It can be concluded that for successful accomplishment of long and short-term goals and
business objective an imperative role is played by marketing strategy which provides firms a
generic direction. Also, for attaining better outcomes in terms of sales growth, global brand
recognition and high market penetration, it acts as road map.
5

STRATEGY COMPOSITION
References
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A., & Winston, E. M. (2017). How firms implement
marketing strategies in emerging markets: An empirical assessment of the 4A marketing mix
framework. Journal of Marketing Theory and Practice, 25(3), 234-256. doi:
http://dx.doi.org/10.1080/10696679.2017.1311220
Finoti, L., Didonet, S. R., Toaldo, A. M., & Martins, T. S. (2017). The role of the marketing
strategy process in the innovativeness-performance relationship of SMEs. Marketing Intelligence
& Planning, 35(3), 298-315. doi: https://search.proquest.com/docview/1890017858?
accountid=30552
Genoveva, G., & Siam, S. T. (2017). Analysis of marketing strategy and competitive
advantage. International Journal of Economic Perspectives, 11(1), 1571-1579. doi:
https://search.proquest.com/docview/1964557363?accountid=30552
Mirzakhani, M., Parsaamal, E., & Golzar, A. (2014). Strategy formulation with SWOT
matrix. Global Business and Management Research, 6(2), 150-168. doi:
https://search.proquest.com/docview/1613914884?accountid=30552
6