QP case competition

Strategy three: Developing new product ranges for existing market This strategy mainly yields intangible returns to HFIC, though potential benefits that can tangibly improve HFIC’s financial performance will also emerge. However, a relatively huge cost is required when implementing such strategy. The economic force of Europe and the highly competitive microenvironment for HFIC, meanwhile, arouses great uncertainties and risks over whether and when her strategy’s returns can outweigh cost and significantly improve the business within a few years.
Potential benefits One influential intangible benefit is that this strategy can help HFIC deliver a more superior customer value to the existing markets, improving her brand’s image. In the business world nowadays, customers, especially those in developed countries, place higher expectation on corporations’ product variety and their fulfillment of ethical and social standards. Through developing new product ranges, HFIC can build up a reputation for its caring of customers’ wants to enjoy shopping experience through searching among diversified outfits. Furthermore, when developing new product range signified by its greenness and sustainability, HFIC can demonstrate her strong commitment to corporate social responsibility and creating social well-being. Where many European customers are well-aware of their impact to the society and environment, HFIC’s strategy can impress them that choosing her products have outstanding advantages not only on product quality level, but also on contributing to the society. In the long-run, such intangible benefit can strengthen the non-price competitiveness of HFIC, an important method to enhance customer loyalty and capture new sources of customers. In terms of tangible benefit, this strategy can provide HFIC with a larger sales potential through expanding its market share of customers. For instance, wearing denim fashion goods has been a Western popular trend among