|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
... 1 Business Level Strategy
Home_Improvement currently has a Focused Integrated Cost Leadership/ Differentiation strategy, whereby it seeks to leverage its core competencies to serve the needs of a particular segment or niche (in this case, Do-It-Yourselfers (DIY), at the exclusion of others (professional home improvement specialists). ... 2 Strategic Intent
Home_Improvement has positioned itself as the premier home improvement partner for DIY customers of all levels (p. ...
In the words of Richard Shane,
‘Home_Improvement empowers consumers by bringing home improvement solutions to one exciting, helpful, and easy-to-use Internet destination. ... 2 Staff with knowledge and capability especially in addressing needs of target segments
By hiring retired professionals from the industry, Home_Improvement can especially assist aging baby boomers, an integral part of their target segment. ... The bottom line is that the Home_Improvement customer is satisfied enough with the transaction process to perform a repeat transaction. ... 4 Extensive and well-presented Product Mix
Being an online presence allows Home_Improvement to offer more SKUs than physical competitors without taking up more floor space. ... 9 Having distinct access to capital, both external and internally generated
Home_Improvement founder and CEO, Richard Shane, single-handedly raised the capital required to launch the retail site. ...
Home_Improvement reaches out to the DIY market. ... 4 Economic
The case is dated in 1999, when the state of the economy was one of better than average health. ... The second group consists of exclusively online retailers such as home_improvement.com, amazon.com. ... com, target.com, and kmart.com. ... com, target.com
• Developing in-house distribution capabilities has created new source of revenue generation as well as reduced dependency on third party distributors (reduces susceptibility to the bargaining power of suppliers/ distributors/ facilitators)
• Proven expertise in customer service translating into an increasing number of repeat transactions (from 15% in 2000 to expected 55% in 2002)
• Efficient, flashy and visual website that incorporates technical data about the products allows customers to glean as much information as is pertinent to them (consistent sales service)
• Standard pricing on goods reduces the time customers utilize in shopping around for the best prices
• Virtual residence ensures that it is geographically accessible to customers
• Promotional strategies such as gift wrapping, free second-day shipping etc. ... com in matching pricing on top 20-25 SKUs. ... They are more likely to hire professionals to help remodel their houses, who do most of their buying at physical retail building supply stores
• Low start-up costs could usher in competitors more willing to take a hit on operating margins long enough to drive Home_Improvement more into the red
• Pre-existing coalitions between market leaders such as Home Depot and suppliers could squeeze out profit margins for newcomers like Home-Improvement, who have yet to establish long-standing trust-based relationships. ... 0 Recommendations to Management
Home_Improvement needs to quit fooling itself and get rid of the trappings of committing to an unnatural integrated strategy. ... Therefore, even to service the need of the DIY market, Home_Improvement needs to offer a wider range to professionals. ...
Home_Improvement can have a 60-day no-questions-asked at-the-company’s-expense return policy, whereby dissatisfied customer can ship back merchandise for either cash-back or a credit voucher (with bonus dollars). ... To increase profitability, Home_Improvement needs to offer more high ticket items at competitive prices
6.5 Create community focused content, such as ‘DIY Hall-Of-Fame’
Home_Improvement needs to build reason for repeat visits. ... 6 Increase Marketing budget to advertise the recruitment of aged professionals
Home_Improvement can reposition itself as a community builder by also advertising its hiring policy of retired professionals (new lease on life, lifetime experience etc. ... In such instances, instead of alienating the customer and re-directing him to another rival, Home_Improvement should take it upon itself to locate the said product and supply it to the customer.
Approximate Word count = 4167
Approximate Pages = 16.7
(250 words per page double spaced)
|
|
|
|
|
|