Strategic Growth Plan: Couch Potato Company Business Analysis

This report provides a comprehensive analysis of growth strategies for SMEs, focusing on the Couch Potato Company as a case study. It begins by examining the bases of competitive advantage, including unique product offerings, resource capabilities, and pricing strategies. The report then assesses growth opportunities using Porter's generic strategies, such as cost leadership, differentiation, and focus. Ansoff's growth vector matrix is applied to evaluate options like market penetration, market development, product development, and diversification, along with their associated risks. Furthermore, the report critically evaluates financing options for growth, including personal savings, angel investors, venture capital, government subsidies, and bank loans. Finally, it discusses succession and exit options available for small-scale businesses, weighing the drawbacks and benefits of each. Desklib offers a wide range of solved assignments and past papers for students.

Planning for growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is one of the most important process in every business organization
which allow firm to plan certain activities and procedure to expand their business. It is very clear
that growth is continuous process, firm need continuous flow of strategic direction to win target
market. Growth demand firm to carefully analyse both internal and external environment,
company can drive success with expansion. This study is based on Couch Potato Company, this
is one of the finest furniture company in the London focusing on customizable furniture products
delivered to home, office and restaurant. This report will discuss key considerations SME's
should take when evaluating growth. Later this report will discuss various methods through
which organization access funding and when to use these different type of funding. Later this
report will discuss a complete business plan including every element required to make business
successful. At last this report will discuss various ways to make small scale business exit the
market.
MAIN BODY
Explaining of the basis of competitive advantage for the business:
Every business organization know the importance of getting competitive advantage, firm
develop certain type of strategies allowing them to get competitive advantage. It is very clear that
company get competitive advantage on the basis of uniqueness and strength they carry, Couch
Potato Company is one of those firm who have competitive foot print in the market. There are
certain basis which need to be consider by Couch Potato Company to get competitive advantage
in the target market, these are:
Unique product: Uniqueness of product and service is one of the biggest basis for competitive
advantage, firm enjoy continuous growth when their product become unique and have ability to
attract consumer. Couch Potato Company can get competitive advantage if they bring uniqueness
to their product (Distanont and Khongmalai, 2020). For example; Couch Potato Company is
focus on basic customizable furniture, however, they can innovate their product by adding self
customizable option which allow consumer to design their own furniture products. Couch Potato
Company need to focus on R&D (Research & Development) which allow them to design
completely new range of product and service, company enjoy stability in the market if product
range become unique.

Resource capabilities: Every business organization demand continuous flow of resource in their
business operation, mainly manufacturing firm know the importance of getting and procuring
right resource (Ali and Anwar, 2021). Couch Potato Company is furniture company dealing in
furniture market, this company can get competitive advantage if availability of resource can be
seen. However, these resources need to be available in terms of low cost and high uniqueness.
Resource availability is basis of competitive advantage because firm might face issue of lack of
resource when demand of furniture remain high in the market. Couch Potato Company can avail
competitive advantage if they increase their resource capabilities.
Pricing strategies: This is another important basis of getting competitive advantage in the
market, firm who set price of the product according to the market condition have ability to
survive in the critical situation. Pricing depend on type of product, if the product is highly
customizable then firm can keep prices high. Couch Potato Company have opportunity to
increase price of their product, after COVID-19 consumer have changed their lifestyle, elite
customer range are demanding furniture in higher price possible which means even after
COVID-19 impact price of the product will going to remain high. Couch Potato Company is one
of those companies who have unique product which means they can set according to their
product range.
A critical assessment of the opportunities available to the business:
Growth opportunities is one of the most important section in expansion process, here firm
need to focus on those opportunities which provide market leadership. Couch Potato Company
need to consider porter generic strategies which allow them to focus on certain type of
opportunities, these are:
Cost leadership: This is one of the most important element in the business organization which
allow firm to capture market after reducing price of their product, however, firm will lose their
brand image and reputation (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). Couch Potato
Company can adopt this option allowing them to reduce price of the product, they will capture
furniture market with the help of reduction is price, but they will lose brand image and
reputation.
Differentiation: This is another option in which firm have to keep their product and service
different from their competitors, here, innovation play key role. Couch Potato Company need to
focus on keeping their product different from competitors by adopting innovation as key

element. However, this option is highly risk because firm might fail introducing new product or
innovative product in the market.
Focus: This is final option available with the business allowing them to focus on growth and
market expansion, firm focus on niche market entry in which they explore those market which is
limited by the group (Islami, Mustafa and Topuzovska Latkovikj, 2020). Couch Potato Company
need to focus on niche market to cover their revenue goals of the year. For example: Couch
Potato Company can focus on elite consumer range allowing them to niche their market, these
consumers segment have enough spending capacity. There are two segments in focus strategy,
these are:
Focused leadership: Here firm need to reduce price of the product before entering into niche
market, firm have ability to focus on limited market demand but reduction is cost allowing
them to fulfil revenue goals.
Focused differentiation: Here firm need to differentiate their product in niche market in terms of
feature, price, ability and capabilities of the product, differentiate focus is powerful strategy
allowing firm to reduce niche market failure process. Both strategies are effective enough to
capture the market and win the consumer.
A critical assessment of the options for growth, applying Ansoff’s growth vector matrix with an
assessment of the risk of each option:
Every business organization plan to expand their business in different market, consider
certain strategies, company want their business to remain stable in local market as well (Dawes,
2018). Couch Potato Company need to consider certain growth option available with the
company to explore local as well as international market, Couch Potato Company need to focus
on applying Ansoff growth matrix allowing them to consider continuous growth and stability,
there are certain growth option, these are:
Market penetration: This is one of the most common type of growth option available with the
company, firm can increase their sales in existing market with existing product range. However,
it is challenging doing so because firm need to introduce innovative product and need to focus on
marketing (Iqbal and et.al., 2018). Couch Potato Company need to focus on getting competitive
advantage in existing market, they need to improve their product range and need to focus on
marketing allowing them to reach as many audiences as possible, Couch Potato Company need
to introduce new marketing strategies with existing product on existing market.

Market development: This is another critical option available with the company to increase
sales of existing product while in new market, this is common process in which international
business expansion is possible. Couch Potato Company need to adopt this option, they need to
enter nearby town and cities apart from London, they can enjoy continuous growth in new
market with existing range of product (Tsatsoula, 2018). However, this option may become risky
for the company because there is no good market condition, after COVID-19, things are critical.
Product development: This option is most beneficial because company can increase wide range
of their product and service with this option, Couch Potato Company need to adopt product
development option allowing them to develop completely new product considering innovation as
key aspect. However, this option is risky as well because firm might face failure of the product,
Couch Potato Company need to be careful while considering this option because they might lose
existing market as well.
Diversification: This is most critical option available with the firm but consider as highly risky
because firm might end up in bad way. Couch Potato Company can consider this option which
allow them to consider new product with new market entry, here, Couch Potato Company need
to introduce innovative product in new market after understanding the demand and market
condition, this option is highly risky in which company might fail in local market as well.
Critically evaluating options for financing growth and sources of funding
Financing growth refers to the reinvesting of profits back in the company in order to
achieve and expand the business more. Whereas, sources of funding means the acquiring of
money from different sources and these are the essentials required by the companies in order to
expand their business more and more. There are different ways for evaluating the financing
growth. One way is to first identify the need and requirements for the capital be it for any cause,
just for increasing the capital or for hiring the new staff, Second: ascertaining how much actual
capital is required, Third: keeping the tabs on credit profile and fourth: being already prepared
for it. Here the company Couch potato can also evaluate its financing growth by determining the
requirements for the capital in order to hire more staff to carry on its functioning in all smooth
manner. As the company is indulged in vast variety of products and deals in almost everything
related to the home furnishings, it should also plan on increasing its capital and ascertain the

right amount needed in order to expand its functioning. But, while doing so, couch potato should
also keep tabs on its credit as through it, the company can analyse its current position after
looking at the credit history and understand better about its position. By proper analysing it, the
company can become aware of what the others and lenders might see and be already prepare for
the up comings. The more the score of credit, the more it is better.
There are various sources of funding available in the market from which the companies
can acquire the desired amount (Janaji, Ismail and Ibrahim, 2021). The sources of funding help
the companies to cope up with the new trends and instalments needed for their daily operation.
Here is a list of some sources available.
 Personal savings funding
 Angel investors
 Family and friends
 Venture capital
 Government subsidies and grants
 Bank loans
Here, couch potato can also acquire funding form the these sources and expand its business
further by either hiring additional employees in its workplace or by opening a new branch of the
office. The business can use different sources of funding and increase its capital for the future
purpose as well. The more the capital, the more efficient will be the working of the company. It
can also invest in its advertisements on the social media in order to expand more awareness of
the brand and create a customer base across the globe. Couch potato can invest in its E-
commerce platform also and take the benefit of greater sales in the near future. Here the ebst
suitable source of funding for the company is to apply and get government loans and grants for
the businesses as that has a very low interest rate.
Succession or exit options available for the business and critically evaluating options to assess
drawbacks and benefits
For every business there are various options available in context to making an exit from
the market or carrying on the business in the market. Here are some options available:
 Merging and acquisitions- This involves merging up with a similar organization or being
acquired by a large and great company.

 Passing the business to a friendly individual- This involves simply passing the established
business to a known or friendly person who can carry out all the operations successfully.
 Selling the share to the partners- Selling the share to the partners' means, the part which
the individual hold in the company, can be sold to the other partner in the exchange of the
money.
 Filing up for the bankruptcy- This implies complete winding up by filing in the court that
there is no fund available with the business to run its functions any more.
 Making the existing managers to buy the company- It refers to the company being bought
by the current managers working in the company.
 Completely selling the business to third party- Third party selling means selling the
Here, Couch Potato is the company which is single handedly owned so there are no options of
selling the part or share to the partners. But the best suitable option for the making an exit is by
selling the company to some third party or to a friendly individual. If these options are not
suitable enough, the owner can also announce the company to be bankrupted and make the exit
from the market.
Drawbacks Benefits
 Lack of sources of income
 Fear of missing on the future success of
the company
 Money can be used as an investment in
the real estate
 Free mind to focus on the other
business ventures
Making recommendations for the business
Couch potato is a great company that has been working with the interior designers and
professionals in order to curate the best design for its furniture outlets. The company is doing a
wonderful job in London by serving almost the entire nation with its home improvements
products. One recommendation that the company should take into consideration is that the
company can spread its brand awareness on the social media platform which nowadays make its
very easy for the brands to get famous worldwide. This recommendation will help the brand to
gain more and more customers across the globe. The awareness of the brand across the globe
will give a great advantage to the company of serving to the world, their beautiful products. The
attractive design of the sofas, lightings, chairs etc. easily attract the crowd of London and it is an

assurity that it is going to attract the population of the world too. So the company should
consider this very recommendation and become socially aware as this will give the company
greater sales and greater profits.
Business plan for the growth of business
Business plan refers to the written documents which provide company's description and
overview (Barrow, Barrow and Brown, 2018). It comprises all the strategies and goals of the
business which helps to determine the business its current position and where the business wants
to be in the near future. Here is the business plan for Couch Potato (McKeever, 2018).
Mission and vision
Mission
The mission of the company is to provide the customers with the best design and
furniture outlets yet, keeping in mind the respect towards the environment and the people.
Vision
The vision of the company is to become one of the best growing furniture brand in the
country and one day in the international market. The company looks forward to becoming a
dependable furniture provider, who is dedicated to seek good heights and great competitive share
in the market.
Products and services
Couch Potato deals in designer home chairs, office chairs, chandelier, stools, Desks,
tables, sofas, lightings, mirrors and every thing else that come under the home improvements
products. The company is indulged in sourcing a complete package of furniture with the trade
pricing and distributing free samples which consist colour matching rugs and fabrics.
Market analysis
Market analysis refers to the assessment of the market within a particular industry in
which the business operates (Munira, 2018). With the proper analysis, a business gets a good
knowledge of what actual the current position of the market is, what are the markets where the
business can target its potential customers, what is the status of the competition in the market etc.
Below is the market analysis of Couch Potato.

PESTLE ANALYSIS
Pestle analysis is a tool that helps the company or a business to determine the external
factors which affect the working of a business (Shtal, And et.al., 2018). It helps in efficient
decision-making and mending strategic plans for the business. These factors involve the political,
social, legal, environmental, economical and technological factors (Hans, 2018).
POLITICAL FACTORS Political factors are engaged with the political environment
of a country in which a business operates. It consists of the
factors such as level of corruption, military invasion,
political stability, taxations, trade regulations etc. Here
Couch Potato is the company which requires a political
stable market in order to attain growth. As the company
operates in UK only, it has no risk of getting exposed to
any other political environment.
ECONOMIC FACTORS Economic factors are engaged with the economic condition
of a place in which the business is operating. It involves,
inflation/ deflation rate, interest rate, savings rate, rate of
foreign exchange etc. Here, after Covid-19 the cost of
inputs has taken a rise which is leading the company to go
through a huge costing in the market and this is also
becoming a challenge for the entire furniture industry.
SOCIAL FACTORS Social factors are engaged with the cultural and traditions
of a place in which the particular business operates or
planning to operate. Here, it becomes very important for
the Couch Potato to analyse the taste and preferences of the
people in the market as the cultural taste of the people
varies from place to place. The UK population is
completely inclined towards the new designs and beautiful
interiors, the company is receiving a good result in the
market.
TECHNOLOGICAL FACORS Technological factors are concerned with the evolving

technologies that are adopted by the businesses or
companies in their workplace. Couch Potato being engaged
in the furnishings, has to adopt the technological
advancements in order to generate and make the desired
products in the market.
LEGAL FACTORS These are the factors which are engaged with a legal
framework of a country in which the business operates.
Couch Potato on operating in UK has a benefit of the
strong legal framework because the market of UK protects
the right of the companies in case of uncertainty. Its has
laws made for copyright, employment laws, fraud laws,
import export laws etc.
ENVIRONMENTAL FACTORS These are the factors which are concerned with the
business activities. The environmental factors involve
waste management, recycling, laws related to the
pollutions etc. The environment of UK is challenging but it
is very important for Couch potato to keep the interest of
the people associated with the company by adopting
various environmental practices.
Porter 5 forces
This model helps in examining the structure of the industry and helps in shaping a
business by analysing its weaknesses and strengths in the market (Bruijl and Gerard, 2018). The
model comprise below 5 forces
Competition- The competition is huge in the furniture market of UK, this makes Couch Potato
to add something extra in its products and services so that the company can win over the market
in the near future.
Threats of new entrants- The threat of the new entrants for the company here is extremely low,
as the furniture business involves a huge capital for the start up.

Customers power- Power of the customers plays a crucial role in Couch Potato as the company
keeps the interest of the customers in mind and keep the prices according to the customers
perceptions.
Suppliers power- Suppliers hold a great power in their hands, as the furniture industry has a
high competition. So here, the company has to take the inputs on the prices set by the suppliers.
Threat of substitute- Threat of substitute is also high for the Couch Potato as there are many
companies who are offering beautiful designs to the customers in the market so for that the
company has to become more fruitful and be more careful about its designs.
Marketing mix
Marketing mix involves 4 P's namely product, price, place and promotion which helps the
companies to influence the customers for buying the product and services (Hanaysha And et.al.,
2021).
Product- The company deals in sofas, lightings, mirrors, rugs, dinning tables, office chairs,
desks, stools and many other products which come under the category of home improvements
and furnishings (Thabi and Raewf, 2018).
Price- The range of the products kept by the company varies according to the products. The
prices are generally due to the exquisite quality of the products but the period of sales brings joy
to the customers as the prices are extremely low during that time.
Place- The company operates its business in London from an offline store. It has a good website
but the company hasn't started its business online.
Promotion-The promotions of the business are done by online advertisements on its website and
by the big banners in the local regions.
Financial projectection
Start up expenses
Legal $1600
Patent & Logo $100
Insurance $2000
Application contract $5000
Web development $1000

Licence $4000
Accessories and Computer $10000
Software of Event management $6000
Others $1000
Total expenses $30700
CONCLUSION
This report has discussed the concept of growth in which business expansion is covered,
importance of growth in the business organization. Later this report has discussed basis of
competitive advantage for the business including those elements which provide internal strength
to the company and growth opportunities available to the business is been discussed including
porter generic strategies for business growth. Later this report has discussed option available
with the company considering growth, this may include ansoff matrix and each element of
growth matrix. Later source of funding and exit strategies are been discussed including key
recommendation to the business. At last, this report has provided business plan including every
important element for start up.

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