Horizontal Growth Strategies at Koleda PureRent Inc: A Case Analysis

This case study examines the horizontal growth strategies available to Koleda PureRent Inc., including increasing production, market penetration, and product expansion. It identifies the problems and benefits associated with each strategy, such as regulatory challenges and increased sales for production increases, price reductions and larger consumer base for market penetration, and potential product failure versus client loyalty for product expansion. The analysis suggests that implementing a market penetration strategy would be the best course of action for the firm, as it would lead to increased sales by attracting more customers and outperforming competitors. Desklib provides this solution and other resources to support student learning.

Running head: CASE STUDY 1
Horizontal Growth at Koleda PureRent, Inc.
Student’s name
Institutional affiliation

CASE STUDY 2
Q1. What different strategies are available to this firm?
Proper strategies are the tools required by different companies to ensure positive growth.
In our case, the firm needs firstly to increase the manufacture and production of the rent to own
goods and during the same part of the supply chain. This will lead to more sales and create a
regional monopoly. Secondly is have market penetration. The firm can achieve this by increasing
its market share and lowering the prices of its goods. Thirdly the firm can implement the product
expansion strategy. This is where the firm will add new features to its merchandise a factor that
will lead to a gain of profit. The firm can also add new merchandise to the old rent to own that
has become outdated.
Q2. What are the problems and benefits associated with each strategy?
One of the major problems with increasing the production of goods and services is that
the firm may experience regulations. These regulation sanctions may be those of health and
safety and may affect the production negatively leading to low sales. The benefit of this strategy
is that it fits the demands of consumers and leads to more sales. Secondly, the major problem of
market penetration is that it forces the company to low the prices set for commodities
(Mackelprang, Bernardes, Burke, & Welter, 2018). This leads to the formation of minimal profits
for the company. The advantage of this strategy is that it leads to a large consumer base and
increase in market shares. Thirdly, the problem with product expansion strategy is that it may
lead to product failure when the competition can release products that outdo the firm’s first
release. This leads to loss of trust in the services or products. The advantage of this strategy is
that it leads to a loyal client base (Visnjic, Neely & Jovanovic, 2018)
Q3. What would be the best choice of action?
The best choice of action would be implementing the market penetration strategy in the
firm. This will lead to more sales through the attraction of more customers and outdoing
competitors.

CASE STUDY 3
References
Mackelprang, A. W., Bernardes, E., Burke, G. J., & Welter, C. (2018). Supplier Innovation
Strategy and Performance: A Matter of Supply Chain Market Positioning. Decision
Sciences, 49(4), 660-689.
Visnjic, I., Neely, A., & Jovanovic, M. (2018). The path to outcome delivery: Interplay of
service market strategy and open business models. Technovation, 72, 46-59.