- Strategic Leadership - Case Study Example

Maytag always thrived on quality and remained customer-focused for its strategic predispositions. If a firm is operating along diverse business lines with a wide portfolio of products but not able to assure quality, even the broad line strategy fails because the proposition satisfies organization’s business and profit motives. On the contrary, if a firm operates in a single line of business and allows multiple communication streams to its customers, chances of its success are more likely on the grounds of focus on core competencies, clear vision and craving for customer loyalty by means of enhanced quality and performance every time.

The strategy of Maytag matched this philosophy where its planning was aligned with supplier collaboration, involving other business entities in the decision making process of the company and a streamlined supply chain with monitoring and control at all levels. Such factors accounted for the unprecedented growth and superior performance of Maytag Corporation. Question 2 Earlier also, Maytag tried to carry on with the farm machinery and refrigeration business in conjunction with its laundry business.

However, the move at that time was not accompanied by need of growth and expansion as was done during 1980s. Saturation of the laundry market compelled Maytag to revisit its decision of expanding its product line and foraying into related appliance market. Though refrigeration and home appliances were the two options available for Maytag to diversify, the latter seemed more lucrative as refrigeration had already been dropped off by Maytag. This might have made the former proposition cloudy and doubtful for Maytag.

Secondly, the major rationale behind Maytag’s entering into the appliance market was to encash the availability of numerous technological advancement opportunities and bargaining power from suppliers prevailing. Maytag was already a reputed name in the market and had close connection with suppliers, better control of consumer psyche and brand image of a quality and price conscious company. These factors would definitely help Maytag replicate the legendary performance in the appliance sector as it had done in the laundry business.

As such, with resources intact, Maytag should proceed to broaden its product line. In doing so, Maytag can provide greater number of connecting points to its customers with that of its business propositions and fill in the gaps with its value added products. Its collaborative relationships with suppliers and inter-functional departments will help in maximizing revenues and reducing costs through business excellence and experience. Question 3 Broad line strategy emerges after a company has performed well in serving a single market of the entire segment.

In Maytag’s case, it is the Numero Uno leader in laundry segment of the home appliance market and its strategic competencies of superiority, customer-oriented philosophy, in-house production capabilities and cost economies are but obvious. Unlike laundry business, other appliance segments are characterized by technology, investment and changing consumer demands. In this light, Maytag has the alternative of either going for a licensing venture or a strategic alliance or acquisition. In the case of former, licensing will enable Maytag to concentrate on