Assign 11
Case Study #1
Fit Stop
External Environment
Simple: According to the text book, the simple-complex dimension concerns environmental complexity, which refers the number of external elements relevant to a company’s operation. In my opinion, the Fit Stop is in a simple environment because the only external elements of any real importance are a few suppliers, competitors, customers and human resources.
Stable: The stable-unstable dimension refers to rate of changes or degree of predictability of changes. Although environments are becoming more unstable for most industry today, I tend to think that the Fit stop is in a stable environment. As mentioned above, some external elements are present, although they change, changes are predictable. There are little change in demand and supply, customer tastes in the industry. Overall, the company is in a low uncertainty (Simple+ Stable) environment, so human relations approach van be effective.
Corporate Strategy
Focused Differentiation Strategy: From the case, we can find that Susan attempt to distinguish them in the marketplace through offer personalized service to their customers. For example, she plans to hire physiotherapists and kinesiologies to provide high-quality advices for their customers to meet their conditioning or specific training needs. According to the Porter’s Competitive Strategies, this is an example of focused differentiation strategy. In a differentiation strategy, a company can reduce rivalry with competitors because customers are loyal to the company’s brand, however, it also require a number of costly activities. Also, the company needs strong marketing abilities and creative employees who are given the time and resources to seek innovations. Analyzer: According to Miles and Snow’s strategy, a company that follows an analyzer strategy both maintains market share and seeks to be innovative. In the case, the Fit Stop falls into this strategy. Susan plans to hire 8 to 12 salespeople for each store
Fit Stop
External Environment
Simple: According to the text book, the simple-complex dimension concerns environmental complexity, which refers the number of external elements relevant to a company’s operation. In my opinion, the Fit Stop is in a simple environment because the only external elements of any real importance are a few suppliers, competitors, customers and human resources.
Stable: The stable-unstable dimension refers to rate of changes or degree of predictability of changes. Although environments are becoming more unstable for most industry today, I tend to think that the Fit stop is in a stable environment. As mentioned above, some external elements are present, although they change, changes are predictable. There are little change in demand and supply, customer tastes in the industry. Overall, the company is in a low uncertainty (Simple+ Stable) environment, so human relations approach van be effective.
Corporate Strategy
Focused Differentiation Strategy: From the case, we can find that Susan attempt to distinguish them in the marketplace through offer personalized service to their customers. For example, she plans to hire physiotherapists and kinesiologies to provide high-quality advices for their customers to meet their conditioning or specific training needs. According to the Porter’s Competitive Strategies, this is an example of focused differentiation strategy. In a differentiation strategy, a company can reduce rivalry with competitors because customers are loyal to the company’s brand, however, it also require a number of costly activities. Also, the company needs strong marketing abilities and creative employees who are given the time and resources to seek innovations. Analyzer: According to Miles and Snow’s strategy, a company that follows an analyzer strategy both maintains market share and seeks to be innovative. In the case, the Fit Stop falls into this strategy. Susan plans to hire 8 to 12 salespeople for each store