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Strategic Management Portfolio - Case Study Example

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Thanks to its domineering policy, Thorntons have been able to maintain a strong and steady lead in the market albeit its presence in some places like London and South England needs to be revved up and they are doing well in that the company is aware of this fact…
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Strategic Management Portfolio
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Download file to see previous pages The company's unswerving concentration and consistent strategies on its retail activities are also noteworthy and undoubtedly one of the main reasons for the company's stellar performance records over the years. (Micha Gisser and Raymond D. Sauer)
Nonetheless, Thorntons needs to keep tabs on its competitors at the top level. There is no mention of the margin of lead between Thorntons and its competitors whose performances are better than that of Thorntons. The company needs to put together its act on horizontal integration too. In the current market scenario of mergers and acquisitions, if aggressive policy of horizontal integration is not in place, the company is in danger of having the rug pulled from under its feet. And the threat is not always from the top players. The global economy is full of eyes waiting in the wings like a hawk to scoop down on its prey from unexpected regions. (Globalization Challenge)
The company also needs to exploit its in-house manufacturing resources. There is no mention if this supply base is allowed to cater to competitors' requirements. Thorntons is sourcing some of its products from outside suppliers. Hence, it makes business sense to allow part of its manufacturing activities to be used to meet competitors' needs. (Michael Porter's Five Forces)
Thorntons' strength lies in its popular brand name which it has assiduously built over the years. Its hold over its product ingredients, market maneuverability based upon differentiation, marketing and manufacturing expertise, influence over retailers and customers, ability to secure outlets at key locations, and traditional family ownership, albeit professional management policies play key roles in Thorntons' market presence as a worthy entity. The company has also done well in building up strong presence in Midlands and North England.
Nevertheless, Thorntons must aggressively pursue its agenda in London and South England where its presence is vulnerable. There are strong contenders in the form of existing players such as Cadbury and Nestle, and potential competitors. The company has wisely invested in a strong in-house supply base in Midlands and North England. It can begin its marketing operations in London and South England on a stronger note to shore up its sales figures. It can supplement its inventories from its own manufacturing plants in Midlands and North England, keeping its options to begin manufacturing operations in London and South England as soon as opportunities unfold. (Carol Propper et al)
Thornton must also begin its sales activities from its own retail outlets. Besides serving as deterrent to ever present threat from strong retailers and manufacturers as potential competi ...Download file to see next pagesRead More
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