STRATEGIC MANAGEMENT
Case Study 1
A Business-level Strategy
Ticktock Industries is one of the world's largest manufacturers and exporters of wrist watches and is China's leading producer of watches sold under the brand name Rightime at exclusive Rightime retail stores. It is a subsidiary of PDQ, a giant conglomerate with business segments in consumer products, women's fashion clothing and the sports equipment industry. Ticktock Industries was started 10 years ago and its watches gained distinct brand identities with watches aimed at different markets in South America, Asia and the Middle East.
You are head of Marketing for Ticktock Industries and are looking to develop a strategy to increase market share by increasing customers across additional targeted groups. This will require various resources to be cost effective.
Right now, Ticktock finds that its customer base consists mainly in the age group of above 50 years of age and would now like to target additional customers. They are looking for your guidance in developing a strategy that will increase their market share, target additional market segments, and increase their competitive advantage globally.
Questions:
1. How would you use differentiation strategy to increase the customer base?
2. Explain the segmentation of the watch market and how you would target different customers.
3. How can you use product positioning in your search for gaining competitive advantage? Explain
4. Can PDQ be leveraged to provide economies of scope and lower some of the costs for Ticktock? Explain.
5. Utilizing Blue Ocean concepts, how can Ticktock focus on new customers instead of existing customers?
Case Study 2
A talented entrepreneur, John Scone, is looking for a solid business investment and decides to open a donut shop in Abu Dhabi. He will call the company Donuts-R-Us. The new company will be operating at one business location, running 3 donut machines, each with a total capacity of making 500 donuts in an 8 hour run time. Presently, he is planning on 5 donut styles, with assorted fillings and toppings. Scone has done some preliminary research within the city, noting that in addition to his new donut business, he will be competing with two other well-established donut shops, Dunkin Donuts and Krispy Crème donuts. Additionally, within his operating area there are also several Cinnabon stores and a Croissant Express shop that specializes in fresh croissants. All of these organizations offer a variety of coffee products and drinks as well.
John is creating a strategic plan for his store utilizing Porter's Five Forces Model as well as other planning tools which he remembers studying in his Strategic Management class which was part of his MBA program.
Based on the above information, answer the following questions for John:
Questions:
1. Prepare a SWOT analysis for John, examining the internal and external factors of his new organization. In addition, write a Mission and Vision statement for John so he can develop a strategic plan.
2. Using Porter's Five Forces Model, discuss the following:
A. Describe the issues John will experience from rival firms.
B. What threats exists from substitute products? How can John lessen the impact?
C. What are threats from new entrants into the market that should be considered?
D. What are the concerns in regard to customer bargaining power? Who are his customers?
E. What are the concerns in regard to supplier bargaining power? Who are his suppliers?
3. Describe several strategies that John can utilize to attract and maintain customers, referencing Porter's 3 Grand Competitive Strategies.