Abstract
Context: Our firm, SYNERGIA is a medium-sized company that makes environmentally friendly cosmetics - cosmetics cover different and important sectors of goods such as make-up, alcoholic fragrance, beauty and care products, hair care, body products (…) We operate, up to this present-day, nationally with a well developed distribution network, which together create, manufacture and then distribute our cosmetics to a broad range of customers, that perceive each of our actions as being different from our main competitors: Weleda, Greenpeople, Bentley organics, Suki, etc. A set of actions should be implemented where our competitive advantage lies in. Purpose: Finding out the healthy situation of SYNERGIA, our CEO would like to encourage its growth by a nationally or even internationally expansion. The purpose of this report is to analyze the potential changes that we would have to operate in terms of strategy as increasing our market size and value.
Extract
[...] et al (2006), “Rules of business behavior”, International Marketing: A global perspective, 3rd Edition, p.395 There are two topics where SYNERGIA would embrace the cost-leadership when it will grow nationally and then internationally: First, our company must offer relatively standardized products with features or characteristics that are acceptable to customers at the lowest competitive price, which is relatively based on an ethnocentric approach (Everything done by the home country headquarter) Second, SYNERGIA must consider their value chain of primary activities (Process engineering, product design for ease manufacturing) and secondary activities (Tight cost control, supervision) and link those activities to implement a cost leadership strategy that is completely related to standardization. 5 III. OUR NATIONALLY STRATEGY “Buyers in specific region are example of narrow target Customer groups.” Duane Ireland R. et al (2007), “Strategy at the Business level”, The Management of Strategy, 8th Edition, p. [...]
[...] Duane Ireland R. et al (2007), “Cooperative strategy”, The Management of Strategy, 8th Edition, p.249-250 7 “In large firms, for example, alliances can account for 25 percent or more of sales revenue” Duane Ireland R. et al (2007), “Cooperative strategy”, The Management of Strategy, 8th Edition, p.250 The solution purpose is to create standard Joint ventures over countries, with only two companies sharing 50% equity based, that will combine our resources, the state-ofthe-art manufacture, and share capabilities to gain a competitive advantages that each two firms, because we will give priority to number 2 firms, would not have separately. [...]
[...] et al (1998), The Cost of Legal Obstacles to the Disadvantage of Consumers in the Single Market, Report for the European Commission, http://europa.eu.int/comm/dgs/health_consumer/library/pub/pub03.pdf. Rhodes Mark, Seizing competitive advantage, strategic thinking, http://www.strategybydesign.org/seizing-competitive-advantage/ http://www.greenlisted.org/personal-care.htm Green cosmetics faculty-staff.ou.edu/J/Richard . /BAd5313BusinessLevelStrategies.ppt Duane Ireland R. et al (2007), “Strategy at the Business level”, The Management of Strategy, 8th Edition, p. 131-132 Duane Ireland R. et al (2007), “Corporate-Level strategy”, The Management of Strategy, 8th Edition, p.154-170 Duane Ireland R. et al (2007), “Cooperative strategy”, The Management of Strategy, 8th Edition, p.247-249-250 Mühlbacher H. [...]
[...] This type of contract with our distribution channel are often accompanied by training for presentation of specific items and client counseling, which type of contract allows our company to control our brand identity but also better control the market and our prices. Such a kind of strategy couldn't be assimilated to a low cost strategy. Moreover R&D in cost-leadership strategy is focused on manufacturing processes, which for SYNERGIA consist in a huge investment in product formula innovation. The whole above arguments contribute to say that, even if SYNERGIA is growing rapidly, our business-level strategy, the differentiation, do not need any changes. [...]
[...] This step is the Corporate-level strategy. “The corporate-level strategy specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product market” Duane Ireland R. et al (2007), “Corporate-Level strategy”, The Management of Strategy, 8th Edition, p.154 By this, the objective of SYNERGIA will be to compete in different consumer product markets by using diversification. To use effectively this diversification system, SYNERGIA will develop products with another business-level strategy, the Focused cost-leadership that will combine our state-of-the-art quality products and a process a lowering costs. [...]
