capstone discussion 2
Strategy Development and Market Research
The importance of creating a strong and comprehensive strategy especially in a rapidly changing global economy cannot be overstated. In your simulation this week you will be working with your team on a long and short term strategy for growth. To create this strong strategy, you will be using market research and then interpreting this research.
In prior classes, tools you have worked with include SWOT (Strengths, Weakness, Opportunity, Threats), “[u]sed to summarise and consolidate the key issues identified when analysing an organisation and its business environment” (Cadle, Paul and Turner, 2010, p. 14) and PEST/PESTLE “[p]rovides a framework for investigating and analysing the external environment for an organization”(Cadle, Paul and Turner, 2010, p. 3). These tools have a current or backward focus. Looking at data from these lenses is critical to establishing trends. One tool that may be important to add to the tool box is a Market Opportunity Analysis. “A market opportunity analysis (MOA) is a process used by companies to determine the feasibility of entering or expanding operations in particular markets for goods and/or services” (Golicic, McCarthy, and Mentzer, 2003, p. 5). “Opportunity Analysis compels strategists to focus on the ‘what should be?’ instead of the ‘what is.’ ” (“Improving Strategy,” 2012, para 4).
Identify a company that you are interested in researching or if you like, you can use the company you are currently working for. Conduct a backward look on this company using a tool like SWOT or PEST/PESTLE. In your research if you discover a completed SWOT or PEST analysis, use this information as a basis for your analysis work and then add to it, for a more comprehensive analysis. Conduct a backward look on this company using a tool like SWOT or PEST/PESTLE. Then conduct an Opportunity Analysis for potential areas of expansion. Present recommendations using the data analysis you have conducted and include how the past/present and future lens helped you in creating recommendations.
Seek feedback from your peers on areas that you would like to see strengthened in your research. Offer feedback to your peers on areas that you see are strong and suggest ways to make the work they present stronger and more complete.
Using your Readings, the information from prior courses including, GB500: Business Perspectives, GB570 Managing the Value Chain, and personal experience will be helpful to you in this Discussion response.
Cadle, J., Paul, D., & Turner, P. (2010). Business analysis techniques: 72 essential tools for success. Swindon, England: British Informatics Society Limited (BISL).
Golicic, S. L., McCarthy, T. M., & Mentzer, J. T. (2003). Conducting a Market Opportunity Analysis for Air Cargo Operations. Transportation Journal (American Society Of Transportation & Logistics Inc.), 42(4), 5-15.
Improving Strategy Development with Opportunity Analysis. (January 31, 2012). Retrieved from https://outwardinsights.wordpress.com/2012/01/31/improving-strategy-development-with-opportunity-analysis/
Topic responses ?
?Expand All More
Mark all as read Mark all as unreadSort By: ? ? ? ? ? ? ? ?Kelly Lally?Email has been sent. 4/13/2016 11:15:41 AM
Unit 2 Initial? Ikea is currently has stores in 26 countries and 53 supplier countries (Ikea Group, 2013). Even though Ikea can be considered a global company they are continuously looking to expand operations into mShow More
Ikea is currently has stores in 26 countries and 53 supplier countries (Ikea Group, 2013). Even though Ikea can be considered a global company they are continuously looking to expand operations into more countries. In order to do so it is imperative a market opportunity analysis (MOA) is first completed. The results of the MOA will determine if the expansion into the researched company is feasible AND a good fit.
Currently Ikea has strengths of a large market presence, low prices, ambience/layout of stores, and high corporate social responsibility philosophies. Weaknesses of Ikea include a lot of product recalls due to low price point. Opportunities include online sales and access to previously restricted countries. Threats recessionary periods, anti-dumping laws, and increasing labor costs.
Ikea has so far been very careful before expanding into new territories. Ikea spent six years researching the country before opening a location in South Korea (Kowitt, 2015). The reason behind six years of research according to Mikael Palmquist “the more global, the more complex it gets, we need to get these things right or we will never be taken seriously” (Kowitt, 2015). One of the most important areas for Ikea to research before expanding into a new country is to determine whether the company can compete on the basis of cost. Ikea’s primary strength is selling breath taking items (BTIs) for a price that takes the consumers breath away. In order to do this marketers must know different price points in each country. For example a product in the US that sells for $100 may be consider a very low price, but if sold in China at the same price it may not be any cheaper than other competitors. This strategy will be increasingly hard to meet in less developed markets.
The past, present, and future analysis of the Ikea group is extremely important to analyze before expanding. The research helps the organization to identify past successes/failures and learn from any mistakes. For example, when Ikea first expanded into the U.S. consumers were purchaseing vases and using them as drinking glasses. The drinking glasses were too small for American standards (Kowitt, 2015). Any areas of weakness should first be addressed before spending additional resources on expansion. Organizations should first focus on existing locations and making sure the local stores are healthy and able to support themselves before moving resources away to global expansion.
Ikea Group SWOT Analysis. (2013). IKEA Group SWOT Analysis, 1-9.
Kowitt, B. (2015). IT’S IKEA’S WORLD*. Fortune, 171(4), 166-175.