Below is a brief strategic statement, and competitive analysis based on a fictious company, that I completed based on my readings. Which of the 5 options makes the most sense to pursue.
OPTION NUMBER 1 IS THE BEST OPTION TO FOLLOW
Keyso's offer means an assured increase in sales if the price is kept at $0.99, this card is likely to be sold in markets that have not been tapped by Shomei till now and simply means a larger pie of the market. With the premium market having been saturated, it must be conceded that expanding into the mass merchandize market is the best way to expand the market share. Even though this means competing directly with Hercules and Atlas, this is possible because of Keyso's offer and because Keyso is dissatisfied with both Hercules and Atlas, there is a good chance that Shomei may be able to make an impact. By entering the mass-merchandize market, Shomei would ordinarily lose some of its exclusive appeal and might be perceived by customers to be of a quality similar to that of Hercules or Atlas. However, since Keyso is selling in an entirely different segment from Shomei's normal customers, Shomei can sell the new line under an entirely different brand name. True, the marginal advantage that customer who have tried Shomei cards in the past will not recognize the new brand, but the advertising campaign for the new brand will build up brand equity for the new brand.
Shomei would in addition get an opportunity to expand its channels of distribution and build up logistics, an excellent opportunity that may be of use to the company in future even when it is no longer selling through Keyso.
The reaction of Hercules and Atlas is not likely to be of any consequence to Shomei because they have already sold cards through Keyso and Keyso have been dissatisfied with their performance. Further, if the companies are more interested in online cards then they would not be perturbed by Shomei's entry into the traditional market.
This contract also gives Shomei the opportunity to manufacture high quality cards at low cost to meet with the requirements of Keyso. This would bring about discipline in the Shomei manufacturing process and improve overall profits of the company
Selling through Keyso helps Shomei to maintain its position No. 3 greeting card company while it continues to combine art and value for ...
The 1492 word solution explores all five options in depth and then states which is thought to be best, together with reasons to support the choice.