Excellent Shoes Production Pte Ltd has the options of using different strategies in their business; using appropriate samples, describe your knowledge of these different strategies and suggest what strategy you might recommend the Company to work with.
In current the financial is overall flexibility and the business that be able to survive in this field should know how to manage their own resource in the utmost efficiency and need to check out the marketplace change and activity, the best way to do this depends on the different technique and functioning diversely on tactical management of the business. Especially, in the consumer markets which there is a advanced of competitive. It is the essential that each one company should start its market in new area, broadening further with modest ambitions or operating in additional differentiation products in marketplaces yearly. These factors are main triggers to bring successfully to business which I believe that it will depend on how the company maintain competitive advantages running a business strategies?, What forms of strategies can be purchased in the business environment? Another important aspect is that the business can use overall flexibility standard strategies or develop its own strategy or not?
In term of Excellent Shoes Manufacturing Pte Ltd, with how big is medium business, I feel that the business may use different of business strategies, matching to its situation. For instance, at the beginning, when the company was established, it may face different problems than at the present. Moreover, the business enterprise strategies that it's implemented may vary from its rival. In my viewpoint, I assume that there are four types of business strategies by pursuing these:
1. Expansion Strategy
A growth strategy conduces adding new products or adding new features to existing products. Sometimes, the business may be required to change or increase its product line to keep up with competitors. Utilizing the new technology of your competitive company is a center concept that can be played on progress strategy. For instance, the company is probable constantly adding new features or sensing new technology for shoes healthy design in order to save customers ft while they may be wearing. As a result, shoes companies that do not keep up with consumer preference would not stay static in business long period. Additionally, the firm may also adopt a rise strategy by finding a fresh focus on customer group for its products. Sometimes, it can find new one for its products by chance. For example, as a result of the business is a specialises in the production and supply of high fashion leather shoes and the manufacturer may discover through marketing research that young teens in university like its products. Hence, in addition to offering fashion leather for students to be able to spread to shops or shoes shop in university, the business could design the shoes product in format of university styles.
2. Product Differentiation Strategy
Most of companies will most likely use a product differentiation strategy when they have a competitive benefits, such as superior quality or service. For instance, the shoes manufacturers may establish themselves aside from competitors with the superior engineering design or creation technology. Definitely, companies use something differentiation technique to set themselves aside from key rivals. However, I believe something differentiation strategy can also help an organization build brand commitment. It can observe that today, the company is known in the neighborhood industry which is amongst the very best companies who is able to produce a high quality pair of sports shoes and girls fashion leather shoes.
3. Price " Skimming Strategy
A price-skimming strategy will involve charging high prices for a product, specifically through the introductory phase. The business use a price-skimming technique to quickly retrieve its production and advertising costs. However, there must be something special about the merchandise for consumers to pay the excessive price. A good example would be the introduction of a fresh technology. Using this method, it might be the first to introduce a fresh kind of new sport shoes aerodynamic design or leather formal shoes modern styles. As the company is the only one selling the merchandise, customers that basically want in trend by putting on new one and ready to pay the bigger price.
4. Acquisition Strategy
According to how big is company with extra capital might use an acquisition technique to gain a competitive benefit. An acquisition strategy conduces purchasing another company. For example, the company may buy a polyester manufacturing plant or a leather manufacturer to be able to broaden its operations also to control cost of shoes organic material.
5. Cost Leadership
The advantage of formulation this business strategy is the fact the company will consciously choose to position its company as a supplier of products or services at the low end of the charges point in comparison to its competitors. Moreover, it could make up in size what they could forfeit in conditions of a high price point. Alternatively, Cost authority is a small business strategy that allows a company to become the cheapest cost production company in an industry. Traditionally, businesses have two key options for improving revenue by increasing sales or decreasing costs. Using this method, the company need concentrate more on acquiring recycleables that will be the finest quality at the lowest price. Another important aspect is that the business must also use the best labour to enhance raw materials into valuable consumer goods. Low-cost leadership usually translates into high-quality goods at low consumer prices. The ability to undercut a competition price often contributes to rises in market share.
In term of recommendation, what forms of strategies should be formulated for Excellent Shoes Production Pte Ltd; I claim that the business could bring the effect from the step of strategy examination and consider in these questions, what the external and inner conditions that are confronting are? How the company can organizes and combines its resources to be able to develop its strengths, to eliminate its weaknesses also to sustain center competencies? How the company can achieve to find good opportunities for growing the business enterprise and also to keep changing of posing a threat.
From the thought in those questions, Personally i think that I could recommend the company to use cost control strategy. As of the problem that Mr. Pattakorn is concerned about the return of the investment in conditions of earnings is much less good as it was during his fathers time. Conversely, the organization appears to have produced bigger with the creation of many more pair of shoes. It is likely that the firm would have the situation from too much creation cost. I think that if the company can review also to control creation cost, it will bring back the outstanding profitability.
To summarize, sometimes, businesses would choose a combination technique to please customers looking for multiple factors such as quality, style, convenience and price.
