Real Fit: Strategic Frameworks and Value Proposition Analysis

This report analyzes strategic options for the local fitness company, Real Fit, established in 2014. It explores two key strategic frameworks: Porter's generic strategic framework and the Value Proposition Canvas. The report details how Real Fit can utilize Porter's framework, specifically focusing on differentiation and differentiation focus strategies to gain a competitive advantage. It explains the four strategies within the framework, including cost leadership, differentiation, cost focus, and differentiation focus, and recommends differentiation or differentiation focus as the most suitable. Furthermore, the report delves into the Value Proposition Canvas, emphasizing its use in understanding customer profiles, value maps, and how Real Fit can align its offerings with customer needs and preferences. The analysis includes customer profiles (pains, gains, and jobs) and value maps (products/services, pain relievers, and gain creators) to recommend the best strategy, which is the Value Proposition Canvas, to improve the company's performance. The report provides a detailed justification for the recommendation, highlighting how this framework helps Real Fit to understand and meet customer requirements effectively, thereby improving customer satisfaction and business performance.

STRATEGY AND INNOVATION
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
First strategic Option: Porters generic strategic framework........................................................3
Second strategy Option: Value Proposition canvas.....................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategy can be defined as a kind of art in which planning of actions is done in order to
achieve long term objectives or desired aim. Innovation can be defined as a kind of new idea or
method which is used in the process of innovating something. Innovation and strategy and two
most important things which helps the companies or organizations to find or innovate a solution
to a specific need or problem (Bell, Dyck and Neubert,2017). Innovation strategy helps an
organization to accelerate their process or method of innovation in order to gain competitive
advantage. This assignment will lay emphasis on appropriate frameworks that can be used by
company to develop suitable strategic options for the company. These strategic options can help
the company to attain potential strategic directions. This assignment will also recommend
suitable strategy for their market and products and reason because of which that strategy has
been chosen. This assignment will revolve around a local fitness company named Real fit which
was established in July, 2014.
MAIN BODY
First strategic Option: Porters generic strategic framework
Real fit can use porter’s generic strategic framework as one of the best strategic option that
can be used by the company. This strategy can help Real fit to provide a strategic direction to
their company (Gould and Desjardins, 2015). As Real fit is a local fitness centre and in order to
achieve their desired aim and objectives as well as expand their business it is important for them
to understand and provide a direction to the organization so that they can decide where they are
heading to. Currently it is not specific where the business is heading to this framework will help
the organization to provide a strategic direction to the organization as well as will also help them
to gain competitive advantage. On the basis of identification of customer’s needs, company can
decide or build their strategy to gain competitive advantage. Real fit follows inside-out
perspective as they lay main emphasis on resources over market. Thy also focus on fitting
through adaptation of the environment so that they can build their resource base.
Porter’s generic strategy helps the organization to understand the way in which they peruse
competitive advantage within the market in which they operate (Wicker and et.al., 2015). This
strategy further consists of four different types of strategies and according to their objective and
requirements they can choose a strategy that suits or fits them best which will further help them
to gain competitive advantage. All the four strategies are based on competitive scope of business
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activities or market in which business operates and source of competitive advantage. Four
strategies of this framework are: Cost leadership, Differentiation, Cost focus and Differentiation
focus.
Figure 1 Porters generic strategic
 Cost leadership: this strategy focuses on providing lowest cost products or services to
broader market (Cavaleri and Shabana, 2018). It is one of the strategies that can be used by
Real fit i.e. to provide lowest possible price for their products or service. But this strategy
won’t be suitable for Real fit as Real fit won’t be able to provide quality products or services
to their customers in lower prices and because of which they would be required to
compromise with their quality of products which would be compromising with their main
objective.
 Differentiation: this strategy focuses on larger market by providing differentiation within
their industry. It is one of then best suited strategy that can be used by real fit to gain
competitive advantage and achieve their main objective. In this Real fit can focus on
charging premium price from their customers and by providing unique products or services.
This strategy will also help them to maintain quality of their products and services and can
dominate the market in which they operate with the help of this strategy.
 Cost focus: This strategy focuses on a specific target market by providing their target
customers with cost advantage. Using this strategy Real fit can focus on developing a product
or service as per the requirement of their narrowed down target market such that that
product/service matches their high-quality successful product or services but is made
available to their customers at lower cost. But as Real fit is a small local fitness centre it
would be difficult for them to further narrow down their target customers but they can focus
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on providing few of their best products or services as per few specific target customers like
by providing them with yearly membership and many more.
 Differentiation focus: this strategy focuses on narrowed down market segment by providing
differentiation within their products or services. They can focus on their target customer
segment in order to fulfil their needs or desires. This will provide real fit an opportunity to
provide products or services to their customers that are completely different from the
available products or services of their competitors. Real fit can use this strategy to introduce
a new product or service in order to fulfil their specific target customers’ needs or desires by
maintaining the overall quality of the product/services.
From the above strategic framework, it can be said that differentiation or differentiation focus
are one of the best strategies that can used by Real fit.
Second strategy Option: Value Proposition canvas
The real fit organization is mainly used the value Proposition strategy that help for
business to provide directions in terms of customer profile, value map. By using strategy, Real fit
firm is focused on the value of business promises to deliver best quality of product and services.
Many customers will choose the quality of product that’s why it is beneficial for organization to
implement strategy to increase productivity and profitability in marketplace (Huda, Chumaidiyah
and Hasun, 2019). Through strategy, real fit can be represented as an enterprise in marketing
statement that company uses for summarised why people should buy an item. In this way, value
proposition strategy offer will add more values in product and solve problem for them.
Generally, Value proposition strategy addressed the real fit firm target consumers and
market segments. It will take form of short, concise and clear statement of intangible and
tangible benefits that will deliver to client. A perfect proposition is quickly transmitting value
without any type of further discussion. This type of value proposition strategy is unique as
develop direct coordination between target consumers and management. Real fit will create
value proposition strategy for increasing huge success while creation of power proposition
become challenges yet rewarding task in business growth (MAHDAVIMAZDE,
HFALKENBERG and STACKHOUSE, 2019). By using strategy, Real fit company must
analyse the market and potential consumer, understands that what are preferences of people. in
this way, it become easier for company to assess and identify advantage of cost delivered. it is
very important for consumer to differentiate between the product price, service and advantages.
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After analysing the market through proposition strategy to evaluate competition level and how it
can be determined overall weakness and strength of other competitors. Therefore, it helps for
finding the business growth opportunities (Irawan, 2019). The most important thing in value
proposition strategy is to give innovative options for customer according to requirement. Thus,
many customer influences towards the attractive concept for taking product and services in real
fit company.
The organization will implement the value proposition strategy in business operations to
divided into different building blocks. It involves customer profile and Value map.
 Customer profile: Real fit can be identifying the consumer needs, requirements, expects
and what would product and services attracts more consumers in global marketplace. it is
important part of value proposition strategy to identify suitable demand that’s why real fit
firm may increase likelihood for adopting a perfect value proposition. it also identifies the
negative experience, risk and emotions faced during customer experience process
(Sawitri and Suswati, 2019). It is better approach in business to understand the pain of
potential customer and fulfil their demand after market analysis. Main function of real fit
company is to understand social, emotional and functional task, trying to perform
different actions for resolve problem and maintain customer satisfaction.
 Value Map: It is useful for real fit business to gain creator that how an efficient product
and services creates consumer gains. In this way, it offers more added values facilities to
potential client. It is helping for building a strong relationship with the potential client.
Real fit expresses their positive attitude towards value proposition strategy is to provide
the fitness training for group of people. In order to take relevant positive and negative
feedback from consumer (Haq, 2019). Afterwards, it would try to improve facilities and
services for business expansion. In this way, it directly engages with the individual for
giving choice of select equipment’s as per requirement thus, it help for organization to
understand the demand of people and add more values in the services. It is totally based
on the customer so that value proposition strategy will help for Real fit to maintain
coordination between them. It also provided services to customer for gained physical as
well as mental benefits. It can determine the product and service through client opinion
which requires for helping to provide right information related fitness services within
organization.
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Recommendation
As per the above analysis there are different models has been discussed in order to find
one of the best option to improve the performance of company for target consumers. In his
process two strategic tools has been considered for evaluation which are Porters generic strategic
framework and other strategy that can be used in the process is customer proportion canvas. The
application of both tools in business is good for company and better value can be generated in
the process to improve the revenue of company (Nasution and Mahaperdana, 2019). Both tools
are useful for organization for their performance in the target market. The strategic tool that is
selected for the fitness company named Real fit is Consumer value proposition canvas. This tool
is useful for organization because there are certain perspectives of this strategic tools are
matching the requirements and needs of fitness company named Real fit. This tool is useful for
company in different manner.
There are main two perspectives are used by organization in this strategic frame work
where perspective of company and perspective of consumers both are taken to generate better
value from the product and services of fitness company named Real fit. On the consumer profile
three different things are considered to understand their needs. These three measures that are
considered by company are pain of consumer, gains of consumer and consumer job. The pains of
consumer are the things which irritate them in fitness company named Real fit. And the gains are
the things that are consumer friendly and the services that are preferred by people are consider in
this category. The consumer job are the basic needs of consumers. The requirements of consumer
are considered by organization in order to provide better satisfaction to them. On the other end
different services and processes of organization are consider to full fill the needs of consumers.
In organization side three consideration are used which are- products and services of company,
gain creator and pain relievers. The products and services of company are considered fitness
company named Real fit to provide better satisfaction to people (Nielsen and Dane-Nielsen,
2019). The pain relievers are the services that are offered by company to reduce the pains of
customers. At the lase the gain creator are the operations that are used by the organization to
improve those product and services that are appraise by customers. This is how by considering
this measures fitness company named Real fit can offer better services to consumers.
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Justification for Recommendation
To improve the performance of organization management can use different tools which
are applicable for them in different market conditions. For fitness company named Real fit
consumer value proposition canvas is used to develop their services to improve their business
performance in the target market. To justify the recommendation for company SAF frame work
can be used which is efficient to check the relevancy of this strategy for Real fit. In this process
suitability or strategy, acceptability of strategy and feasibility of consumer value proposition
canvas can be evaluated. On this three criterion the consumer value proposition canvas can be
judged.
Suitability
In this process the suitability of the strategy is evaluated as per the need of organization. There
are different factors are can be considered in order to achieve the goals of company by applying
this strategy for company. The value proposition is a strategic model that is used by organization
to develop their product and services as per their needs. As Real fit is a fitness company that
provide different facilities to their consumer to keep them fit and healthy (Vorbach, Müller and
Poandl, 2019). To provide better services to their consumer they need to know the needs and
requirements of consumers and consumer value proposition canvas can help them to understand
the needs of customers by developing consumer profile. So this strategy is suitable for Real Fit
fitness company.
Acceptability
The acceptability of consumer value proposition canvas is also high for Real Fit fitness
company because it is a fitness centre that provides various facilities to their consumer to keep
them fit. Because the implementation cost of this strategy is very low then it can be consider as
the acceptable strategy for Real Fit fitness company. This is also acceptable for Real Fit because
the returns and profits due to this strategy also comparatively high for company.
Feasibility
as there is not physical devices are needed in this process so the consumer value proposition
canvas can be used in Real Fit fitness company to improve its performance in the market place.
To implement this model in organization company needs basic tools that are cost efficient and
also this tools can be developed with in the company. Most important thing for this process is
basic research that can help the company to understand needs and requirements of customers.
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CONCLUSION
In above discussion, it concluded that Strategy is a type of art that useful in organization
to perform different actions in order to achieve long term goals and objectives. Innovation is
another type of idea that mainly uses in the business operations for improving quality of products
as well as services. The report has considered the most suitable things such as Innovation and
strategy which plays important role in business for increasing organization profitability. It can be
determined that innovation provide a solution in operations and functions. Furthermore, it has
summarised about the different frameworks that mainly used within company to develop suitable
strategic options for business improvement. The innovative strategy is increasing demand of
business within marketplace because it easily utilises different activities for providing better
options. The different types of strategic options can help the company to attain potential strategic
directions. However, it can be determined the suitable strategy for their market and products and
reason because of which that strategy has been chosen.
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REFERENCES
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