Chester is following a global and differentiation strategy. By performing a VRIO Analysis on our company, Chester, we are now able to see what our greatest internal capabilities are. I have found that customer survey is high and a valuable resource for Chester. We also have a high market share compared to the rest of the industry, making this a rare resource for the company. Our differentiation strategy allows us to keep a high but competitive price in the industry, making it a valuable resource.
There are other factors that contribute towards the growth in the organization and diversification being one among them. It means an organization introducing a new product to a new market. Through diversification the company can expand its operations and create a new source for income and on the other hand reduce its risk to a certain limit and it creates value. Diversification helps a company to survive in uncertain conditions because if an industry is occurring losses there will be cash flows from an another product that could be making ample profit to support the organization (Akbar D. Y., Strategy growth Entrepreneurship and company life cycle, 2015). Example of organization with diversified products is coca cola, coca cola sells many other products other than just cool drinks it sells juices, energy drinks, mineral water etc. (http://www.coca-colacompany.com/brands/all/) .
Sam Walton is the founder of Walmart, after leaving the Military he worked for retail for a few years and gained some experience. In the 1950’s him and his wife moved to Bentonville and he opened up his own store called Walton’s 5&10. With having so much success on this store he opened up the first Walmart in 1962 in Rogers, Arkansas, and it only went on from there. (2016 Wal-Mart Stores Inc.). More Americans buy their groceries at Walmart than anywhere else, it is known to be one of the cheapest but it has one of the lowest ratings.
Macy’s company is an icon when it comes to retail companies. Its history is a story of resilience, industriousness and innovation. Macy’s was formed by Rowland H. Macy even after several of his ventures into retail failed. It is a well-known story that on its first day of opening the now retail giant only pulled eleven dollars and six cents in sales. It started as a dry goods store in a low rent district, an area away from other dry good stores in New York City.
Sears Holding Corporation (SHLD) is a parent company of both Kmart Holding Corporation and Sears, Roebuck and Co., with revenue of $22,138,000,000 in fiscal year 2016. The company has faced challenges over the last few years and is operating at a deficit. SHLD has a liquidity ratio of .9, which means they may have difficulty in
The Ansoff Opportunity Matrix crosses new existing products with new existing markets. There are four directions beginning with market penetration, which increases the market share among current customers. Next is market development that entices new customers to current products. The third direction is product development that produces new products for current markets. Lastly is the direction of diversification that introduces completely new products into new markets.
Diversifying the company is an excellent form of expansion as it allows you to establish multiple streams of connection, which then comes in a form of income. This not only helps the company expand in a great way but it also needs to be seen on a larger scale. One in which you can make business not just in our operating country but others as well. If the current market is doing exceptionally good, then expand on that. Expand globally to establish more business with other countries this is a key concept that our company is going to achieve and this plays an important part to international establishments.
Star: One strategy that can be used with business units that fall into the “star quadrant” is that of market development. Stars are products that are flourishing, and making a lot of money for the firm they belong to. According to Theproduct.com , market development can be defines as “growing sales of a current product in a new market”. This strategy allows for a new market to develop for a fast growing, profitable, business unit by either expanding into new geographical locations or finding new uses for the current product. For Stars to continue to shine, it is critical that management understand the new target market before embarking on a market development strategy.
Despite its decreasing market share it is still the largest provider of home appliances and repairs in the US. Currently, the Company has been forced to dispose most of its assets and close many of its stores due to high costs of operations and great losses made. Weaknesses Lack of product differentiation: Sears Holdings has majored on opening many stores across the US instead of focusing on product differentiation to improve the quality of products in these stores. This has led the company to lose its market share to its
In the end, this allows a foundation for combined synergy. It is important to understand and to recognize the potential legal risks that would impact the deal. Also, review and discuss the pensions or other equity plans the company has active.
The company Sears Holding is finding it very difficult to maintain its position in the retail business. Sears and K-Mart merged in 1968. The main premise of the merger was to help both companies meet their objectives. Sears has closed 400 stores in the past year. Since 2010 Sears has not turns a profit.
The authors list an inability to achieve current objectives as a reason for investing in unrelated diversification. Typically, this type of diversification contributes managerial stress by stretching resources for making decisions and the responsibilities of overseeing a new product. While most attempts to generate revenue through unrelated diversification have fallen short for acute care settings, there are exceptions (Ginter et al., 2013). Many working parents struggle to find a balance between family life and work demands.
The second reason for merging and acquisition explained the businesses’ aims to increase their capabilities in their area of competence. That said, this method permits firms to develop vigorous
Walmart is the largest retailer worldwide! Sam Walton opened the first Walmart, the beginning of the monster franchise in 1962, in Roger, Arkansas. His idea of Walmart was built on offering lower prices and great service to consumers. His competitors told him that it wouldn’t work. Walmart became a public franchise in 1970, and the owner credited it not only to the low prices that they provided, but to his associates.
To whereas, Walmart gives you more of what you need at a cheaper price and Sears gives you less in what you want and expects you to pay more. Also, Walmart has an affordable layaway plan than Sears. Financial Information
