5: Choose a Strategy - Essay Example

Choose a strategy The option chosen for Shomie Cards: The best possible solution for Shomei Cards in this situation is to ride the internet wave. This option involves creating an online catalogue from which the customers can choose the cards on the basis of their tastes and preferences. As per the choice and order of the customers the cards are sent to the customers by the company. This gives a more personalized selection option for the customers. Selecting cards through internet is the present trend in the industry and is one of the reasons for the slowdown in the industry.

Rationale for choosing the option:The new business strategy for Shomei Cards is chosen on the basis of certain factors. A business strategy is always aimed at bringing best results for the company. Among the three strategic options available for the company, the second option is selected on the basis of the benefits that the strategy will bring in for the company in future. Maximum return with minimum investment is the rationale that is taken for choosing the best option for the company. Impact of internal and external environment of the company on the choice: Shomei Cards is a company that has been existence since 1980.

“In 1980, Chris and Bob Harolds, a young married couple, started Shomei Cards from their home in Wareham, Massachusetts.” (Harolds). The cards of the company had wide acceptance in the market due to its quality and attractiveness. As business grew, the company introduced different product lines among its card business. The product lines of the company are Shomei Impressions Line, Shomei Fine Artists Line and Simple Shomei Line. Shomei’s growth at the present stage is in a flat pace. Some of the business environment that was considered for selecting this option is as follows.1. Down trend in the company profitability and the reason for downtrend: The profitability of Shomei Cards has come down.

This is due to the slow growth rate of the industry. The major reason for slow growth rate in the industry is that the people are interested in designing their own cards in internet. Moreover, they are interested in sending e-cards. 2. Increased competition: Increase in competition is the second factor that is considered. In the greeting card market Shomei faces stiff competition from Hercules Cards and Atlas Cards. Shomei ranks third among the greeting card companies of US. In order to maintain that position the company should move into the sector where they can attract more customers. 3. Competitive advantage of the company: The competitive advantage of the company is its unique designs that are created through its highly skilled artists.

These designs can be introduced in online catalogue to provide the customers with plenty of good choice. Reasons for not choosing the other options: The other two options are not as advantageous to the company as the second option. As per the first option the company will form an alliance with Keyso for wider distribution of cards. This option intends to make use of the wide network of Keyso supermarket chains. But the major limitation with this option is that the company needs to maintain large amount of inventories at each stores of Keyso.

Higher amount should be spent for marketing campaigning too. The third option is about acquiring any of the companies from Felicita and Snapadoo. This option is extremely unsuitable for the situation. The main reason is that Shomei’s profitability is low in the current situation. The company needs to spend large amount for acquisition of the company. BibliographyHarolds, Chris. Problem: The Card Company: Shomei Cards History. Brainmass. 2004- 2007. 20 May. 2008. .