Strategy of Gander Mountain Company - Assignment Example

? Comprehensive Case Analysis Task: Introduction The government creates public companies, in an attempt to strengthen the financial viability of a country. Moreover, the government ventures into those economic sectors that private fear to invest into, owing to the large capital involved and sophisticated technology. However, liberalization of the markets and globalization has led to the creation of numerous private companies and expansion of the existing ones, whereas their public counterparts continue to experience losses and eventual closedown of key public companies. Besides, corruption, mismanagement, and overstaffing are among some of the key factors that pose as threats to most public companies. This manuscript will effusively analyze Gander Mountain Company by stating its challenges, key strengths, and apparent weaknesses. In addition, it intends to devise an all-inclusive strategy on how to solve such concerns. Existing Objectives and Strategies Gander Mountain is a public company, whose main intentions are to provide outstanding services to its clientele at exceptionally subsidized costs. This is in an attempt to maintain the dependability of their clientele, as well as improve the public image of the company. Moreover, the firm plans to spread out their products to the public by increasing the number of outlets in the US. The firm also plans to boost its annual revenue by making more sales and dropping the expenses (David, 2011). Moreover, the firm intends to improve customer satisfaction by adding value to their current goods and services, therefore, bring in a new line of assorted products and services. Environmental Opportunities and Threats Gander Mountain possesses various strengths significant for its growth and advantage over its competitors. For instance, the firm has created a wide network of reliable customers. Additionally, the company boasts of another group of potential customers. This opportunity will boost the firms’ growth if exploited to the maximum (David, 2011). Additionally, the firm boasts of its powerful link and interactions with its suppliers. This ensures that goods and services provision to their customers is constant and timely. The management team of Gander Mountain is extremely qualified and thus devotes their experience to the ultimate growth of the firm. Besides, the firm experiences a key weakness in its competitive front. Various entrepreneurs have ventured into this industry, therefore, posing a significant threat on the firms goals of expanding outlets within the nation. Additionally, the number of former loyal customers has significantly diminished. This may have resulted from the economic recession that has seen the lay-off of many customers. This incapacitates the clients financially, and hence the firm experiences this sudden drop (David, 2011). Therefore, the firm ought to shield itself from the threats of competitors and reduced clients. This is only possible by offering high quality products, as well as services at subsidized prices. This will retain the current customer, and attract more customers into purchasing these products and services (David, 2011). However, this comes at some costs, but the firm will achieve its ultimate goal of growth and increased profitability. Competitive Profile Matrix The table below depicts the competitive Profile Matrix for Gander Mountains, Bucker’s Incorporated, and Kirk’s company. The pricing of goods and services at Gander Mountain is relatively low as compared to its competitive counterparts. This is a strategic plan to outshine most of the potential threats of the firm. However, the quality of these products and services offered is exceptionally high. Additionally, Gander Mountain has employed various types of media advertising. This has aided significantly in mounting the number of clients, thus increasing their sales. Moreover, most of their customers depict loyalty to the company, therefore, creating an extensive customer network (David, 2011). The annual revenue for the firm has consistently increased, making it stable financially over its competitive counterparts. This has occurred due to the strategic planning by the management firm after the firm started incurring losses. Consequently, the market share of the firm is significantly large, paving way for the growth of the firm beyond borders. External Factor Evaluation Matrix (EFE) The table below depicts the External Factor’s Evaluation Matrix for Gander Mountains Company. Major External Factors Weight Rating Weighted Score Opportunities The market for fishing and hunting products and services are still large and not flooded. 0.3 3 0.9 The number of potential customers grows daily despite the recession and competitors. 0.35 4 1.4 The recent increase in al fresco activities, thus expanding markets. 0.1 1 0.1 Threats An upsurge in the number of competitors. 0.15 2 0.3 The effects of the economic recession prompting people to reduce their expenditure. 0.1 1 0.1 TOTAL 1 2.8 According to the above EFE, it is clear that Gander Mountain possesses various untapped potentials. For instance, the market for its goods is gradually increasing, boosting the growth of the firm. This is through the number of potential customers that need the products and services of the firm. Moreover, many individuals have ended into outdoor activities, thereby creating more potential employers for the firm. However, they ought to apply their strategic management skills in beating their competitors. This is of importance since the competitors possess equal opportunities. As a result, they ought to provide elevated quality goods in order to attract these potential customers (David, 2011). Besides, the effects of recession have unfavorably affected Gander’s annual sales, making them incur losses. Conclusion The government initially created public companies in an attempt to constrict the gap created by the private companies. They provide goods and services that private corporations fear to offer, owing to large capitals and technology involved. Additionally, numerous public companies have incurred losses, prompting others to shut down. Besides, these companies ought to apply their precise strengths and opportunities to outdo their competitors. In addition, they ought to look for procedures that can reduce forces of their various weaknesses and threats. Reference David, F. (2011). Strategic management: concepts and cases. Upper Saddle River, NJ: Prentice Hall / Pearson. Read More