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Business Strategy - multi-national conglomerate

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Since the marketing strategy followed is demand pull, the company is able to adopt price skimming strategies; that is it takes higher prices for its products. It also results in advanced placement, co-operative advertising, and cross promotion.
The company needs to exploit its strengths and should continue its high end advertising campaigns to spread awareness and liking for its products in both consumers and professional users…

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Business Strategy - multi-national conglomerate

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Subject: Miscellaneous
Type: Essay
Level: Undergraduate
Pages: 5 (1250 words)
Downloads: 3
Author: mherman

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Due to the company's huge size, it faces problems adjusting to the requirements in rapidly changing market conditions.1.2.1.1 Recommended StrategiesThe company should concentrate on development of cordless tools and market them using its effective advertising strategy. The manufacturing plant needs to be relocated to relatively economical area so that the cost of production can be reduced. Separate positioning is required for consumer and professional tools; hence the company should brand them separately.

Smaller and manageable Strategic Business Units (SBUs) can be created which are more responsive to the changing market demand and needs. The company should engage the distributors using concept of vertical integration. 1.2.2 MakatumeLack of focus on power tools for consumer market channel that is expected to grow. This might result in loss of revenue to the company.1.2.2.1 Recommended Strategies The company needs to address this issue by establishing a division for producing power tools for consumer market including corded and cordless tools.

These tools should be developed for individuals and Do-It-Yourself (DIY) type of users. 1.3 Opportunities1.3.1 Smith and White CorporationThe rest of the market consists of several domestic and foreign niche competitors with no one having greater than 5% share of the total market.The cordless tools market is growing at a high rate and can be tapped.1.3.1.1 Recommended Strategies The company should focus on developing cordless tools as the market is growing at a very high rate of 10% per year.

Research and development budget needs to be established and innovative designs and models should be developed to tap this developing market. In addition, the company should develop strategies to increase barriers to entry for. The manufacturing plant needs to be relocated to relatively economical area so that the cost of production can be reduced. Separate positioning is required for consumer and professional tools; hence the company should brand them separately. Smaller and manageable Strategic Business Units (SBUs) can be created which are more responsive to the changing market demand and needs.

The company should engage the distributors using concept of vertical integration. The company needs to address this issue by establishing a division for producing power tools for consumer market including corded and cordless tools. These tools should be developed for individuals and Do-It-Yourself (DIY) type of users. The company should focus on developing cordless tools as the market is growing at a very high rate of 10% per year. Research and development budget needs to be established and innovative designs and models should be developed to tap this developing market.

In addition, the company should develop strategies to increase barriers to entry for new competitors making it difficult for them to enter the market. In addition to raising barriers to entry for potential new entrants in to the market, the company should focus on untapped consumer channel power tools m

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