Strategic Analysis of Ooni: Recommendations for Growth and Expansion

This report provides a strategic analysis of Ooni, a company specializing in outdoor pizza ovens. It outlines recommendations for broad differentiation, focusing on product innovation and functional simplicity, and internationalization to expand market reach. The report discusses the benefits of these strategies, such as reduced price competition, improved profit margins, and enhanced brand loyalty. Furthermore, it identifies potential challenges, including cultural issues arising from internationalization, high costs associated with differentiation, and the risk of competitors mimicking Ooni's products. The report emphasizes the importance of addressing these challenges through employee training and careful market analysis to ensure successful implementation of the recommended strategies and achieve sustainable business growth. The report also highlights the issues like cultural differences and time consumption issues to implement the strategies.

MANAGEMENT REPROT

EXECUTIVE SUMMARY
Management defines as a process of planning, designing, making, leading, controlling,
and encouraging the human resources, financial, information resources to reach the business
goals within specified period of time. This report includes Ooni as a company that mainly deals
in designing outdoor pizza oven and specializes in offering high temperature outdoor pizza oven
for residential customers. It represents strategic recommendations for Ooni such as broad
differentiation strategy and internationalization to attain competitive advantage and profits.
While implementing these strategies company may face several issues such as differentiation in
culture, customer’s awareness, team management etc. that are connected with
internationalization and differentiation strategy of Ooni. Assessing issues is very crucial to
understand the situation and prepared for profitable future.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
PART 1.......................................................................................................................................................4
Outlining strategic recommendations for Ooni........................................................................................4
PART 2.......................................................................................................................................................8
Issues while implementing broad differentiation strategy and internationalization strategy under Ooni
Company.................................................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Management reflects as an activity of planning, organizing decision making and leading,
staffing, motivating and managing all essential resources within company for reaching the goal
on time and in appropriate manner. It represent setting activity for coordinating efforts of
employees so that objectives are attained on time. This report is based on Ooni Company that is a
leading outdoor pizza oven firm based in Scotland (Velikorossov and et. al., 2020). They raise
funds for launching product by using crowd funding platform. It launched best pizza oven with
wood pellet fired, stainless steel oven that heats up-to 500 °C. Now Ooni wants to expand its
business operation by developing strategy for attracting large base customers and earning
profitable results. Further it demonstrate issues while implementing strategies so that it is easily
resolved and firm will enjoy profitable results.
PART 1
Ooni Company is highly famous for making portable pizz ovens that is used by number
of families for outdoor cooking. This firm offers first portable pizza pellet pizza oven since 2012
and continuously emphasis on innovation and launch better pizza ovens that helps people in
experiencing great around globe. This company represents remarkable improvement from
domestic ovens due to which company becomes an award winning business that continuously
focus on growing market share within business world. The main aim of Ooni is the belief that
everyone gets and deserves best pizza. To maintains its brand position and growth in market
Ooni manager need to focus on implementing mainly two strategies such as broad differentiation
strategy and internationalization strategy that helps Ooni to maintain its market leadership
position and also creates dominancy within business industry.
Outlining strategic recommendations for Ooni
1. Broad differentiation strategy- It refers to a strategy that helps business organisation in
building a brand which is different from competitors or rival in a meaningful manner.
This includes differentiation on the basis of industry wise for appealing extensive range
of customers. In terms of Ooni Company, manager wants to maintain market leadership
position and building high brand reputation for this broad differentiation strategy is to be
recommended to them as a management consultant (Pfarrer and et. al., 2019). As Ooni

is highly famous for innovation and also offering creation problem solution for enjoying
long term benefits. In this they need to focus on designing functional simplicity in pizza
oven. This differentiation would create product versions that have price point that user
somewhat comfortably adopts. To maintains its differentiation in products company
highly focus on using advanced technology that helps user to easily opt the pizza ovens
and make a best pizza that fulfill an individual person craving. The differentiation is
based on preparing pizza that is done in Ooni oven within 10 seconds that includes wood
pelted and prepares in 600°C. It also simple in function that notifies every single step by
connecting it with smartphones. Nowadays people are more loved eating pizza and for
this they go out to restaurants and café to enjoy great taste of pizza. To fulfill the needs of
people Ooni design simple functional pizza oven that prepares a best pizza as per an
individual demand. Along with this Ooni also focus on quality of deliver their products
using Green- transportation. This will attracts people towards brand and it helps in
attracting number of families to buying products and services. Therefore company offers
broad differentiation strategy that is highly distinct within industry. This type of products
does not prepared by any of the rival organisation due to which they enjoyed premium
pricing strategy. The broad differentiation strategy attracts broad cross section of buyers
in business industry.
 Benefits of implementing broad differentiation strategy
There are several benefits of implementing broad differentiation strategy that are related to
Ooni Company:
o Reduced competition related to price- This is foremost benefit of implementing
broad differentiation strategy that allow firm to compete in market with
something other products that present at lower price. For instance- a pizza making
company differentiate its pizza oven to improve its taste and quality of pizza that
attracts customers (Okumus and et. al., 2019). In terms of Ooni Pizza Oven,
manager differentiates the functional feature in pizza oven by indulging high
quality technology that is not offered by any other competitors in market. This
helps manager to charge premium price for their products. This strategy attracts

huge base of customers due to which brand reputation is enhanced within
marketplace.
o Better profit margin- This also represent benefits of implementing broad
differentiation strategy. When firm differentiates our products and turned higher
quality products it presents more opportunities in terms of generating larger profit
margins. In context of Ooni pizza oven, they mainly targets family and high status
people with in society who are willingly to prepare pizza for fulfill regular
cravings. In this Ooni pizza high advanced pizza oven that is connected with
smartphones and prepares pizza within a 10 second attracts customers to buy the
products. This will generate more loyal customers and build brand reputation in
marketplace.
o Consumer brand loyalty- Effective broad differentiation strategy creates a brand
loyalty in customers when company maintains the perceived quality of goods and
services. In this Ooni Pizza oven, creates differentiation in functions of pizza oven
and marketed those products by celebrity person that helps in increasing brand
loyalty and also creates value of brand in marketplace that also helps in gaining
competitive advantage.
 Challenges under implementing broad differentiation strategy
In terms of Ooni Company, manager implements broad differentiation strategy in which they
face major challenges that are presented below:
o High cost issue- In terms of Ooni pizza oven, manager wants to implement this
strategy in which they face the high cost issue (Anokhina, Maksimov and
Seredina, 2019). As company collects funds via crowd funding and it is too
complex to collect huge funds from this source for doing differentiation within the
products. It affects financial resources of business.
o Mimic of products by competitors at cheaper cost- Another challenge that was
faced by Ooni Company while doing broad differentiation in products. In this
several small competitors are focusing on mimicking products of Ooni and sale it
on low cost. This affects brand reputation in market place.

2. Internationalization- It refers to that strategy that reflects designing of products in such a
manner that it may readily consume across multiple countries. This practice represent
plan of action leading towards integration of intercultural, international and global
dimensions throughout purpose, delivery and function (Newburry, Deephouse and
Gardberg, 2019). It is a second strategy that is adopted by Ooni Company in developing
profits and growth. It is a strategy that is used to expanding the business beyond domestic
market. In this strategy Ooni Company cannot sale their products in different price in
foreign country. Due to differentiation in products that fulfill global customer demands
organisation cannot lower their price. For instance- It includes high advanced technology
that helps pizza oven to function in simpler but in a innovative manner. This will attracts
customers in all over the country and it also creates brand loyalty in global market. There
are various benefits of implementing internationalization strategy along with challenges
that are faced by Ooni at the time of expanding their business for generating more profits
and revenues. Benefits of implementing internationalization strategy
Some benefits that Ooni company would enjoy while implementing internationalization
strategy that are presented below:
o Entry to new market- The first advantage of implementing the
internationalization strategy is that it provides access to new market (O’Brien and
et. al., 2019). Once Ooni got higher success in domestic market they want to take
the business abroad by targeting customers on global level.
o Access to local talent- It is very hard to find experienced talent in small region
that means in domestic country. However, it offers high benefits to Ooni
Company to enjoy a talent pool with unique and creative skills that helps in
developing and designing more advanced products that fulfill customers’
demands.
o Increased business growth- It is biggest benefit that is enjoyed by Ooni
Company that is maximize the growth of business. By expanding operation of
business on global footprint, new customer experience with Ooni products and
services that helps in gaining profitable results in marketplace.

 Challenges for implementing internationalization strategy
In terms of implementing internationalization strategy Ooni company management face issue
related to compliance risk in which operating business on global level need to follow policies
and procedure of that particular company so that profitable results are enjoyed.
PART 2
In this part of report basic three issues are represented that Ooni will need to focus on
while executing above explained strategic recommendation. Issues regarding implementation of
recommended strategy are presented below:
Issues while implementing broad differentiation strategy and internationalization strategy
under Ooni Company
 Cultural issue- It is the major issue that was faced by Ooni organisation while
implementation internationalization strategy and broad differentiation strategy. In this to
maintain creativity within business organisation manager of Ooni hire people in around
the world that follow their own country culture and value. It will affects current culture
due to which targets of implementing broad differentiation strategy is highly affected. In
this management team of Ooni face the issue of conflicts among members with different
culture due to which there management in working is affected and burst (Dzwigol and et.
al., 2019). In this if there is no manager than employees are not managing themselves due
to which whole working is affected. Culture and operation of business is differing in
every country and these will present challenge to Ooni in their survival and completing
goals in time. In this Ooni focus on expanding their business in African countries where
culture is totally differ from European culture that affects working and profitability of
business because both company hires employees in foreign countries with domestic rules
and regulation. It creates issue in understanding the activities to expand business in
foreign country. In this Ooni adopts differentiation strategy where they indulge high cost
but due to cultural difference the investing cost is used under solving conflicts. To
overcome with this issue while implementing both strategic recommendation practices it
is very essential to provide training and development session to employees so that they

understand working criteria and focus on attracting large base of customers. This helps in
gaining profitable results that is one of the major missions of business enterprise.
 High time consuming- While implementing above explained strategic recommendation
that is internationalization and broad differentiation strategy it represents as a major
challenge. Due to internationalization Ooni needs to expand their contacts and for this
they used lots of channels to generate contacts and information about products and
services. In this they also focus on connecting with customers using multiple channels
such as social media, e-mails, telephones etc. at this they face issue of solving issues of
customers on multiple channels. In this to solve issue of other country customers it is
very essential that customer service provider has good communication skill and also
understand different language and culture (Barney, 2020). Hence while implementing
internationalization Ooni needs to face issue of more time consuming in solving
customer’s problems and due to various types of channels company management team
face major issue on making connectivity with people who are the user of their products.
While implementing above strategies it is very crucial to understand the demands and
needs of market so that differentiation would be done effectively. In this Ooni will face
issue because of multiple channels are used by people that consume more time of
business firm. While doing business with differentiation and internationalization Strategy
Company adopts the several communication channels to connect with customers and
clients in all over the world at this time they may face challenge in relation to time
management. Due to multiple channels management of Ooni takes more time to
understand customers and offers goods and services according to their demands and
needs.
 Challenge facing in engaging teams within activities- At the time of
internationalization business Ooni Company expands their business operations in all over
the globe. For this they also develop the team by hiring new team members who are able
to perform their task within evolving company. at the time management of Ooni face the
issue of bifurcating team into smaller groups and focus on that every team member
engaged in performing their task and activities so that high profitability result are
attaining within specified period of time (Chofreh and et. al., 2020). In context of Ooni
company grows and because of this team of the firm will also grow. In this many

employees are sustain for a longer period of time with the company even the enterprise
develops its operations. At this time organisation face the challenge of motivating
employees towards productive work so that proficient and productive results are attained
on time. At the time of differentiation in products team engagement is highly important
and because of lack of motivation management faces the issue of handling team members
for efficient working. In differentiation there is more need of employee ideas and
engagement in task because it helps in presenting effective ideas that helps business
enterprise to keep evolving within competitive world. Due to mismanagement in team it
also incurs high cost while doing differentiation that reflects as a major issue of
differentiation. To overcome with this issue management need to highly focus on
overcoming these issues by encouraging team members so that resources are used
optimally. In terms of Ooni management in team is to be affected due to which research
the target audience is difficult as it helps in align the business. For instance- in Ooni if
there is poor management in team because there is a team in which existing and new
employees are working in which number of conflicts would raise at this time they cannot
focus on survey the target customers related to products and services. This will negatively
impact the brad image.
Hence, all above are the issues that are faced by Ooni Company while implementing the
above explained two recommended strategies that are broad differentiation strategy and
internationalization strategy. These issues are culture issue, more time consuming strategy that
affects short term goals, challenge face in engaging team members with implementing strategies.
Therefore, it is highly essential to overcome with this issues that are present so that more
profitable results are attained on time.
CONCLUSION
From the above report it is to be concluded that management is highly essential to
complete business goals and objectives in an effective and efficient manner. This elucidates two
strategies that is implemented by business organisation in order to expand their business growth
and profits. Both strategies that are broad differentiation strategy, internationalization strategy
helps in attracting customer base and also creates brand value in global market by gaining rival
advantage. Further it demonstrates issues that impacts negatively to firm while implementing

above explained strategy. Reflecting issues helps on overcome on time and also manage working
within business firm.

REFERENCES
Books and Journal
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Dzwigol, H. and et. al., 2019. Formation of Strategic Change Management System at an
Enterprise. Academy of Strategic Management Journal. 18. pp.1-8.
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