Trunki Strategic Report: A Comprehensive Analysis of Strategy

This report provides a comprehensive strategic analysis of Trunki, a leading brand in children's ride-on luggage. It begins with an environmental analysis using PESTLE and Porter's Five Forces to identify external factors impacting the company. An internal analysis follows, employing SWOT and value chain models to assess Trunki's strengths, weaknesses, opportunities, and threats. The report then discusses strategy formulation, focusing on the mission statement and strategic actions like competitive pricing and social media marketing. Finally, it addresses strategy implementation, emphasizing the importance of effective marketing and workforce management to achieve organizational goals and gain a competitive advantage. The analysis highlights the importance of adapting to the competitive environment and leveraging opportunities for growth.

STRATEGY

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Environmental analysis...............................................................................................................4
Internal analysis..........................................................................................................................7
Strategy formulation...................................................................................................................9
Strategy implementation.............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX 1.................................................................................................................................13

EXECUTIVE SUMMARY
A business strategy plays vital role in growth and success of a company, whether it is
small or large, it contributes to enhance operational effectiveness and gain a lot of benefits. The
current assignment is based on Trunki, which is one of the leading brands in the world, that
provide ride on or carry on hand luggage to children’s (About Trunki, 2022). The study has been
shaded lights on environmental analysis, strategy formulation and implementation action
regarding Trunki that has enabled organization to gain competitive advantages in bulk.

INTRODUCTION
It is fact that without developing effective and useful strategy an organization is unable to
grow rapidly, whether it is public or private. A business tactic contributes to reach expect
outcomes, that management tend to obtain in term of aim achievement. Trunki is one of those
products that makes child happy and create their travel journey easier, which is quite essential for
any toy company to consider that. The current study will be based on Trunki, which is known as
most popular element appeared in English Programme named “Dragons Den”. The report will
explain environmental analysis, internal analysis, strategy formulation and implementation.
MAIN BODY
Environmental analysis
In the recent time, there are different types of tools and techniques as well as strategic
frameworks available in the world of business and has been utilized in the context of varied
organizations (Vlados and Chatzinikolaou, 2019). In case of Trunki, Pest and Porter’s five forces
models is applied, that provide key information about the potential threats and opportunities in
the context of company.
PESTEL-
Political factor-
As an external factor, it may put direct impact on sales and success of a company that
operated under specific sector, whether it is retail or others. Changes related to political factors
may affect the way a firm operates their venture (What is PESTLE Analysis, 2020). In case of
Trunki, change related to tax rate may put positive impact on its productivity and profitability in
term of providing chance to enter into new market, where growth chances accessible in bulk.
Economic factor-
Fluctuation related to economic factors such as economic growth, unemployment,
inflation and others may put direct impact on current practices and strategies of companies. For
example, just because of low inflation level, Trunki and its business may grow rapidly, which in
turn contribute to increase profitability and allow management to take pleasure of generating
more revenue than its rivals.
Social factor-

Social factors such as customers buying behaviour, lifestyles, market trends, etc. may
also affect organizational practices and activities, whether it is operational or functional. For
example, buying behaviour of consumers and market trend in case of Trunki may put positive
impact. As they may allow firm to progress and take pleasure of maximizing consumer base
because parent’s prefer to buy a travel toy named Trunki for their kids.
Technology factor-
Technological advancement may also put positive impact on success and progress of
Trunki as it may allow marketer to promote this product worldwide instead of facing challenges
to advertise the same by using traditional marketing approaches that consumes a lot of time. It
may give them chance to promote item, internationally without conducting too much efforts in
term of using the best social media platforms.
Porter’s five forces model-
Bargaining power of rivals-
The bargaining power of this stakeholder is low because number of suppliers are
accessible in the market, who are capable to provide or offer raw materials that organization may
utilize to design and produce Trunki as a kid’s suitcase that they may utilize to sit and travel
from house to airport or other transportation channels.
Bargaining power of consumers-
The degree of this force is low, because customers may do not have such substitute items
that they may utilize against or alternatively in regard to Trunki (Porter's Five Forces - The
Framework Explained, 2022). It may put positive impact on brand success in the world of
business, where it has established its image in the market by selling quality and satisfactory
products.
Threat of new entrance-
The extent of this force is low, because a company that tend to enter into the market
where Trunki venture is sustaining required to put a lot of efforts and invest huge amount of
money. As it may lead to decrease the threat of new companies entrance in the market, which
may put positive impact on chosen firm.
Threat of substitute products-
The threat of substitute items is also low, because individual customer may do not find
out such an amazing product like Trunki for their kids that they utilize and play with it. It may

affect positively in the context of brand that produce this suitcase and give chance to become a
top kid suitcase providing brand in the world.
Competition between existing companies-
The extent of this force is high as each existing brand may give tough competition to each
other, that may put negative impact on Trunki success and excellent progress according to
management expectations. This factor my drive the attention of organization toward developing
strategic plan or tactic that provide desire outcomes in effective manner. It emerges as a threat
that firm may face.
Value curve model-
It is one of those models that has been applied while conducting external environmental
analysis in the context of specific firm such as Trunki. It may allow management to test whether
their tactic is quite enough from their rivalry brands to have real impact. It may drive their
attention toward developing understanding about where their venture is creating value for
consumers through products in term of certain elements such as raise, reduce, eliminate and
create.
Figure 1Value Curve Model

(Source: Understanding the Value Curve Model, 2021)
According to the elements, firm may take approach to raise the value of item, then take
action to reduce the ineffective factors such as high cost, which may put impact on buying
behaviour of consumers (The Value Curve Model, 2022). After considering these two
components, they may take initiative to remove forces that customers pay for as a part of a quo
such as unnecessary things. Management may take approach to create the best products, along
with considering target market need that allow to design valuable Trunki, which target market
prefer to purchase, as it may provide strategic business growth opportunities to firm.
Internal analysis
SWOT-
Strengths-
The quality of products and raw material that organization is using to produce Trunki is
considered as its key strengths, which in turn provide strategic benefits to brand in term of
retaining and gaining consumers.
Weaknesses-
Lack of strategic marketing plan and utilization of effective promotional tool, are
included in list of weaknesses that firm may have. As it may put negative impact on its venture
success in competitive business world.
Opportunities-
Technology advancement, low degree of threats such as new market entry, etc. are those
chances that organization may grab to grow in productive manner, which is quite essential for it
to do so.
Threats-
Intense competitive environment in the market and pandemic, are considered as those
factors that threaten firm and drive its attention towards formulation of effective strategy that aid
to gain a lot of benefits.
Value chain analysis-
Primary activities-
Inbound logistics-

Inbound activity is included in list of organizational strength, that firm may utilize to
enhance consumer satisfaction in term of producing Trunki according to customers’ expectations
and requirements.
Operations-
By referring to value chain analysis as internal environmental analysis model, it can be
identified that operational management is another strength of Trunki that produce kid’s suitcase,
which individual seen in Dragon Den as English programme.
Outbound logistics-
This term refers to the practices of company that may put impact on its venture in form of
managing inventory and products storage. Trunki may do not have its own vast warehouse,
where it may keep items safe and getting out according to the demand, which may put negative
impact on its outbound operation or activity success.
Marketing and sales-
For purpose of marketing, organization may have skilled and talented candidates, who are
able to promote venture, but still facing issues due to poor selection of advertising tools that put
negative impact on sales.
Service-
In order to enhance consumer satisfaction, firm may provide better consumer service that
is its core value or competence.
Support activities-
Firm infrastructure-
Its organizational structure is not that effective, which may lead to decrease organization
performance and operational effectiveness.
Human resource management-
HR section is the biggest strength of Trunki as human resource department manager is
able to comprehend candidate’s issues and skills that they tend to develop. They may take
approach to develop the best tactic that in turn provide satisfactory facilities to all.
Technology development-
In the context of business growth, management is able to implement advance and
effective technologies that aid to increase productivity and profitability.
Procurement-

It may conduct this activity in successful manner in term of purchasing raw materials
from suppliers and then producing goods to ship across national boundaries.
Segmentation target market-
By using demographic, psychographic and behavioural segmentation approaches,
management may take action to target all the consumers as target market, among which parents
are the main focus of company, who tend to purchase those items for their kids that they may
utilize and play with that.
Strategy formulation
Mission statement-
Trunki mission is to generate brand and product awareness worldwide and to enhance
customer satisfaction.
Strategy-
In order to achieve this mission, firm and its management may take strategic action in
term of strategy formation. For example, they may develop tactic to utilize competitive pricing
strategy and promoting venture by using the latest promotional tools such as Instagram, which
may aid to gain the attention of other consumers, especially in case of pandemic situation that
has affected buying decision of individual person. It may enable marketer to generate excellent
brand and Trunki awareness in the market, which is quite beneficial and essential for
organizational success (Lee and Kim, 2020). In the recent time, Instagram, Facebook and other
social media tools plays vital role to make a business successful. In case of Trunki, they all are
essential and effective in term of awaring people about product that help to gain their attention,
whether they are national or internal consumers.
They may conduct a group meeting with other stakeholders, such as HRM, etc. to make
assure that it may have a strong workforce, among which each candidate requires to work harder
and produce those items that individual person prefer to purchase. By conducting all above
practices as strategy formulation, organization may gain competitive advantages in pandemic
situation, where each and every company survive to sustain in specific market or industry.
Strategy implementation
It is quite essential for marketer and other departmental expert to implement above tactic in
effective and appropriate manner. For example, at initial level they may create an official profile
on Instagram as social media channel, just to make assure that they may reach to target market

effectively (Wulandari and Darma, 2020). After that, marketer may add all the information about
Trunki on their account or new profile including price, design and selling methods such as
offline and online sources. It may provide them chance to achieve vision and aims of
organization.
Furthermore, management may take action to hire skilled candidates and then structure
workforce in appropriate manner, which may give them power to reach expect outcome in term
of strategy implementation into practical term. They may take approach to divide workforce and
clearly state their roles as well as accountabilities that aid to achieve set aim. With Instagram,
marketer may promote pricing strategy for company, that it may select to retain and attract new
consumers, among which each person is able to conduct word of mouth promotion that help to
generate excellent brand awareness. It is one of those strategies, that Trunki may implement and
deal with certain issues in effective manner, which is necessary for company to do that as it put
impact on its success.
Budget
Resources Cost (£)
Market research 15000
Technology implementation 1000
Social media profile development 12000
Training and development 12500
Recruitment 1350
Other assets 2000
Total 43850
CONCLUSION
From above analysis, it has been concluded that organization has gained competitive
advantages in bulk as it has given tough competition to key rivals that are accessible in the
market where it has sustained its venture. It has enhanced the satisfactory level of parents who
are facing issues to travel with kids. As a kid’s suitcase brand, it has enabled children’s to enjoy
their air and other forms of journey successfully. Furthermore, from above discussion, it has
been identified that by developing effective strategies and techniques, company has achieved its
strategic objectives in effective manner.

REFERENCES
Books and Journals
Lee, S. and Kim, E., 2020. Influencer marketing on Instagram: How sponsorship disclosure,
influencer credibility, and brand credibility impact the effectiveness of Instagram
promotional post. Journal of Global Fashion Marketing. 11(3). pp.232-249.
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability. 9. p.25.
Wulandari, L. P. A. and Darma, G. S., 2020. Advertising Effectiveness in Purchasing Decision
on Instagram. Journal of Business on Hospitality and Tourism. 6(2). pp.381-389.
Online
About Trunki. 2022. [Online]. Available Through: https://www.trunki.co.uk/pages/about-us
Porter's Five Forces - The Framework Explained. 2022. [Online]. Available Through: <
https://www.mindtools.com/pages/article/newTMC_08.htm>
The Value Curve Model. 2022. [Online]. Available Through: <
https://www.mindtools.com/pages/article/value-curve-model.htm>
Understanding the Value Curve Model. 2021. [Online]. Available through: <
https://www.mindtools.com/pages/article/value-curve-model.htm#:~:text=Value
%20curves%20help%20you%20to,factors%20present%20in%20your%20industry.>
What is PESTLE Analysis. 2020. [Online]. Available Through: <
https://www.analyticssteps.com/blogs/what-pestle-analysis>

APPENDIX 1