mgmt 490 ppt
Globalization Research Project
Group 4: Scott Darr, Olga Bolaños, Zinaida Maga, and Abdulrahman Barradah
MGMT 490: Professor V. Gupta
Hot Focus specializes in girl’s accessories for the 5 to 13 age group. With over 400 items in the categories of cosmetics, stationery, body art, hair accessories, nail decorations, jewelry boxes, arts and crafts, wearable and more
Background
Question
Partnerships
Profit Oriented Approach
Strategic Planning
Related Sites
How does Hot Focus Manage Competition in Business?
CALIFORNIA STATE UNIVERSITY SAN BERNARDINO
Yellow Ocean Strategy
In the constant pursuit of innovative ideas to create a wide range of fun and trendy products, Hot Focus Inc. has partnered with Omnia, a 3D technology service company that provides advance printing capabilities.
The company plans based on:
Transformation.
Development.
Vision
Profit
Toy Kingdom Inc.
Ink Elephant Graphics Design Studio.
Mobext
Omni 3D Technology
http://www.inkelephantstudio.com/
http://www.omnifab.ph/services
| Process Integrity Hot Focus Inc. will team up with Elephant Ink to joint venture product centers and service centers – allowing Hot Focus to retain partial ownership of items sold by DIY business. | Entity Integrity Hot Focus Inc. will certify / franchise products as well as service centers. These services can be provided by companies like Earthworks who has a strong marketing presense online. |
| Product Integrity Hot Focus Inc. will own products as well as service centers. As a leading toy seller in the Philippines, Toy Kingdom with sell genuine Hot Focus accessories. | Value Integrity Hot Focus Inc. will own product centers and certify service centers. OmniFab will enable 3D printing of new Hot Focus DIY designs while creating value for OmiFab being able to use the Hot Focus Brand. |
| Hot Focus will work with Philippine companies to design custom accessories that can be sold in both the Philippines through Toy Kingdom and back in the US through US retailers. | Hot Focus can sell unique and indigenous designs created by Elephant Ink and Earthworks Fashion Accessories and sell them through Hot Focus Distributors in the US. |
| Hot Focus offers its own custom designs to its customers both in North America and the Philippines through retailers like Toy Kingdom. | Hot Focus will arrange deals for other outlets to sell Hot Focus products designed by Ink Elephant and Earthworks Fashion around the world. |
Value multiplication
By partnering with Toy Kingdom therefore gaining access to distribution systems of the largest toy store in Philippines.
Green Ocean Strategy
White Ocean Strategy
Demand Manipulation
Using Ink Elephant’s packaging and graphic design services to redesign products for Philippine market.
Completion Multiplication
By partnering with Earthworks Fashion Accessories will allow Hot Focus Inc. to sell fashion jewelry handcrafted in Cebu, Philippiness.
Factor Multiplication
To empower girls and the women they will become; Hot Focus can partner with the Women’s Business Council Philippines (Wimbish).
Innovator Globalization research Project
California State University San Bernardino
Strategic Management 490
By
Scott Darr, Olga Bolaños, Zinaida Maga, and Abdulrahman Barradah
Hot Focus Inc. and Its Products
Hot Focus Inc. specializes in girl’s accessories for the 5 to 13 age group.
With over 400 items in the categories of:
Arts Cosmetics Stationeries Hair Accessories
Crafts Body Arts Jewelry Boxes Nail Decorations
Hot Focus Inc. attracts retailers such as toy stores, gift stores, specialty stores and children boutiques.
They are located locally in Ontario, CA.
The company is continually looking to improve to better serve its customers and provide quality products.
The company partners with other companies to produce wide range of products.
A SHEENY Perspective Business Partnering in the Philippines
H
Human
Companies already doing business in distribution, marketing, design among others that can give Hot Focus Inc. access to the market.
E
Ecological
By partnering with established companies, Hot Focus can use the distribution centers and resources and gain access to the market without having to develop its own.
E
Economics
Filipinos are considered among the most confident consumers that plans on increasing spending power and more business.
N
National
With a strong business base and international goals, the US is already a major trading partner in the world. Philippine companies likely to be favorable toward partnerships.
Y
psYchological
Cultures, tradition, regulations and among others; considerations needs to be taken in what can have both direct and indirect effects on Hot Focus.
A population of over 100 million people. Half of which are females.
The growing trends of female empowerment, makes the girls accessories market a good fit.
S
Social
G
Global
Toy Kingdom is the largest chain of toy stores in the Asia-Pacific region. They are in SM Malls in the SM Department Stores and Supermarket, Hypermarkets.
U
Unique
The stores are divided into fourteen toy zones:
Artist Circle, Active Zone, Cuddly Corner, Discovery Zone, Games Landia, Girls at Play, Glitz and Glamour, IZone, Party Kingdostam, Rides to Go, Smart Starters, Speed World, Super Heroes and Tween Zone.
I
Inclusive
The go-to store for items like what Hot Focus makes. Have something for every girls’ and boys’ toys and accessories. It’s a place where parents as well as children will enjoy going.
D
Diversity
Customer service representatives are known as Toy Ambassadors. They ensure the customers toy shopping experience is enjoyable and fun.
E
Engagement
It is a member of local foundations that aims to protect disadvantaged and at-risk children through a nationwide network of social services.
R
Responsible
A company Filipinos have been shopping for years that they know and trust with 21 stand-alone stores and 98 branches inside.
Planning Stakeholder Strategy & Globalizing Zero Sigma Partner
Programming Blue Ocean Strategy & Globalizing One Sigma Partner
Ink Elephant is a graphic design studio that specializes in:
Hot Focus Inc.
can adapt to the changes in consumer’s habits by having new products designed rapidly.
Hot Focus Inc.
can benefit from working with a graphic design studio that will make sure that the products that are not best sellers can be redesigned at a lower costs.
Achieve cost leadership advantage by making investments that improve the costs structure of its value.
Has strong partnership with the local printing firms so the new design can be created, printed and advertised on a short term…
Brand Identity
Concept & Design
Motion Graphics
Web Development
Studio Photography
Performing Resource Value Chain Strategy & Globalizing Six Sigma Partner
Mobext is a subsidiary company of the parent company Havas Media. It has a large number of personnel and human resource in place that is not only skilled but also knowledgeable in the market force of girls’ accessories.
Hot Focus Inc. can benefit from the large resources Mobext obtains from Havas Media.
Mobext is an active participant and organizer in local festivals like the Adobo Festival in Philippines which empowers the youth to be creative and survive within the field of creativity.
Hot Focus Inc. should carry out continuous campaigns to develop competency and emphasize the essence of the brand in the market.
Mobext provides specialized service in the social domain. They offer a state-of-the-art platform for marketing products through mobile media.
As a recognized leading force of digital marketing, Mobext possess useful knowledge of the social changes and interests through data mining and market research, including creative marketing design ideas.
They have a strong foundation of covering the social grounds at a national level.
Profiting Emerging Technology Strategy & Globalizing Tech Partner
OmniFab, a 3D technological service company specialized in:
Mold Making 3D Printing/Prototype 3D Design Plastic Injection Molding
provides advance printing capabilities. They use the latest technology to bring their clients designs to a whole new level that is unique from the market.
In accomplishing this kind of uniqueness, OmniFab partners with the first Advance Manufacturing Centre (AMCen) for 3D printing research created by the Philippines Department of Science and Technology (DOST).
OmniFab obtains gathered studies of 3D printers’ performance and the newest cutting-edge ones that enhances the end-results of a client’s products while improving material cost, lead time, and quality.
The two joins forces of OmniFab and Advance Manufacturing Centre proudly support the organization of Girls Who Code. This organization encourage young girls in the community to participate in activities related to coding, programming, and engineering. Through these programs the Advance Manufacturing Centre and OmniFab learn what young girls’ interest, ideas, and current projects they are working.
OmniFab creates value by focusing on the “demand pull” in a cross-functional approach that develops teams for assessing customer needs and technological preference.
As developing this value, they capture value by entering a technological gate-keeping that includes the monitoring of emerging technologies.
When they capture the emerging technologies, OmniFab ensures in maintaining a sustainability value that protects the intellectual property of each of their customers as they serve various customers.
While continuously developing value of their 3D equipment by transforming technology during its life cycle
In creating, capturing, sustaining, and developing values, OmniFab lead an entrepreneurship that is focus on possible opportunities and having the resources to execute the transformation.
Developing 9 Managing Functional Strategies
To accelerate our growth, Hot Focus will learn new functional core competency strategies from our partners in the Philippines. These core competencies consist of nine functional strategies that has positioned our partners in a competitive advantage.
Managing Relationships
Human Resources (manpower).
To support the business objective, Toy Kingdom recruit employees that are well educated and have a high commitment in serving the business needs. The implemented workforce brings special talents to target customer groups through the history of long-term experiences and relationship development with these groups.
Supply Chain (materials power)
In order to highly be responsive to the need of the market, Toy Kingdom, Ink Elephant, Mobext, and OminFab invest in business processes that provides just-in-time inventory system. This process entails the businesses to network with one another and with other potential suppliers that provides support when needed. For instance, Ink Elephant, a design studio networks with printing and marketing services companies; granting them a competitive benchmarking in fulfilling the downstream of the supply chain.
Customers (marketing power)
Interactive communication with customer about the latest and unique products the company develops is key to the brand and quality recognition. Mobext uses telecommunication in the form of text messages to reach its customers. This approach permits the company to have an economic of scales in advertising. At a low cost the company is able to market products and obtain a direct connection with the customers who regularly hold and check their cell phones messages.
Developing 9 Managing Functional Strategies
Managing Resources
Investments (money power)
The Philippine market is competitive and growing. For these reasons, all four of our partners seek more opportunity-oriented investment than budget-oriented investment. In whatever opportunities can be found that will allow to be ahead of the competitors and continuously add customer value, our partners are ready and well connected with investment centers to provide the support that they need.
Knowledge (methods power)
Without reinventing the wheel, Omni Fab 3D Technologies and Ink Elephant Designs partners with Girls Will Code to learn about young girls’ interest, ideas, and the current projects they work on. Engaging in understanding our customers, brings creation of products that the industry does not create. Also adds to the greater value of selling innovative products to the customers.
Technology and Innovation (machine power)
As a process-oriented specialist of machine power, OmniFab 3D Technologies partners with a recent created Advance Manufacturing Centre (AMCen) for 3D printing research. The goal is of these partners is to accelerate the performance capabilities of the 3D printer at a lower cost without sacrificing customers’ benefits.
Managing Growth
Operations (manufacturing power)
Instead of cultivating a service-intensive operation that service the culture, mindset, and technology—OmniFab operates as an asset-intensive company that conducts economies of scale, learning, specialization and network. For instance, their partnership with Advance Manufacturing Centre (AMCen) and Girls Will Code, combines the asset-intensive operation strategy needed to bring a new 3D product to its physical form.
Leadership (motivating power)
As oppose of leading the business in a transactional style that seeks to specify the objectives of people with specific resources, all four of our partners seek to instead lead in a transformational style. This leading approach focused on engaging the people with an overall purpose, mission, and values to guide them in bringing innovation to the company that refines the competencies, valuable resources, and innovative technologies. This freedom or autonomy motivates their people to excel in what each of them do and specialize.
Stewardship (manipulating power)
Because our partners engage in social stewardship that is grounded in trusts for which does not hold any fiduciary obligation to only serve one client, but several. The industry of girls’ products seeks to establish a privatizing-stewardships that protects the ideas and works by forming contractual agreements that prevents a vendor from using the ideas and works for other clients.
Developing 9 Managing Functional Strategies
we can develop the manpower to recruit personnel that are well educated and experience in the industry of children’s products.
Incorporate a business process that will ensure that our partners in the supply chain provide a just-in-time material power.
Implement a marketing power that will market to every user who has a hands-on mobile technology, such as I-Pads, tablets, and advance technological watches.
Seek to learn from girls’ programs, clubs, or organizations in our market that teach us about girls’ current interest, ideas, and activities to have the method power of knowledge.
Partner with innovative and technological companies that encourage their team members with continuing education to have the machine power of developing equipment that have an economic of scales.
Pursue opportunity-oriented investment that provides zero or lowest interest rates to obtain the money power to expand and restructure our business.
Lead our personnel in a transformational method to motivate them to bring innovative ideas to Hot Focus Inc. and develop a community- oriented relationship with our demographic.
Transforming Five Forces of Corporate-Effects
1
2
3
4
5
Threat of Potential New Entrants
Ease of Building Supply
Ease of Building Demand
Relation from existing firms
Buyer Bargain Power
Needs for Superior Terms of Purchase
Leverage
Substitution
Threat of Substitute Products
Availability of Quality, Cost-Effective Substitutes
Competitive Rivalry within the Industry
Presence of major competitors
Disruptive Growth of the Industry
Exit Barriers
Supplier Bargaining Power
Need for Superior Terms of Service
Leverage
Substitution
Transforming Strategic Group
There are several strategic groups within the female accessories industry in the Philippines. The firms and groups are strategically specialized in a number of areas from distribution, designing, production, ethnic accessories for females, modern girl accessories or seasonal girl’s accessories.
Zalora is a distribution company that targets young girls in the Philippines from the age of 7 to 14. This group has defined its low-and-middle income niche that sells to designed sunglasses and hats accessories. The products they offer is of unique designs and are stylish, fashion-forward and colorful to a broad range of clients at a low price
Kiley is one of the prominent online stores in Philippines that sells designed girls’ purses and keychains. The online market has enabled Kily.ph to be a low-cost vendor in the industry by attracting customers from different levels with their greater attention to cost controls.
Arana is one of the known girls’ jewelry brands locally in Philippines and the most successful globally. On cost leadership, Arana makes use of the natural locally available materials in designing and producing its products.
Transforming Strategic Porter’s Diamond Geography
Factor Endowments
Demographically has a large population of approx. 1 million Filipinos. Rich in natural resources of medals and stones.
Related and Supporting Industries
Competitive partners reinforce innovation and internationalization.
Home Demand Conditions
Their GDP represents 51% of the world economy. At an annual growth-rate of 6.3%.
Firm Strategy, Structure and Rivalry
Rules and regulations encourage investment, productivity, and openness to foreign and local competition.
Designing alternative Forming Global Strategy & White Ocean Strategy
In combining the strategic advantages of our four local Filipino companies, Hot Focus will be known as the company that cares about its customers, the environment, its partners and its employees.
The Plan Consists of Four Elements:
Value multiplication
By partnering with Toy Kingdom therefore gaining access to distribution systems of the largest toy store in Philippines.
Demand multiplication
Using Ink Elephant’s packaging and graphic design services to redesign products for Philippine market.
2
1
Designing alternative Forming Global Strategy & White Ocean Strategy
The Plan Consists of Four Elements:
Completion multiplication
By partnering with Earthworks Fashion Accessories will allow Hot Focus Inc. to sell fashion jewelry handcrafted in Cebu, Philippines.
3
4
Factor multiplication
To empower girls and the women they will become; Hot Focus can partner with the Women’s Business Council Philippines (Wimbish).
Following this White Ocean strategy, Hot Focus Inc. will be profitable though, as customers will prefer to buy from us, employees and partners will prefer to work for us, and the local government among others will be supportive of us and possibly even work with us.
Execution Corporate Strategy
The linkage partners of Hot Focus Inc. are forced to excel and overcome challenges necessary to achieve maximum project efficiency and maximum profits.
At the same time the company's mission is to create value and gain competitive advantage in the local market while having a positive effects of GUIDER value beyond the local stakeholder network.
Hot Focus Inc. will work towards becoming:
Global, Unique, Inclusive, Diversity, Engagement, Responsible.
Execution Yellow Ocean Strategy
| Process Integrity Hot Focus Inc. will team up with Elephant Ink to joint venture product centers and service centers – allowing Hot Focus to retain partial ownership of items sold by DIY business. | Entity Integrity Hot Focus Inc. will certify / franchise products as well as service centers. These services can be provided by companies like Earthworks who has a strong marketing presense online. |
| Product Integrity Hot Focus Inc. will own products as well as service centers. As a leading toy seller in the Philippines, Toy Kingdom with sell genuine Hot Focus accessories. | Value Integrity Hot Focus Inc. will own product centers and certify service centers. OmniFab will enable 3D printing of new Hot Focus DIY designs while creating value for OmiFab being able to use the Hot Focus Brand. |
The Yellow Ocean Strategy for Hot Focus Inc. is as follows:
Visioning Future Strategy
Visioning Green Ocean Strategy Scenarios
| Hot Focus will work with Philippine companies to design custom accessories that can be sold in both the Philippines through Toy Kingdom and back in the US through US retailers. | Hot Focus can sell unique and indigenous designs created by Elephant Ink and Earthworks Fashion Accessories and sell them through Hot Focus Distributors in the US. |
| Hot Focus offers its own custom designs to its customers both in North America and the Philippines through retailers like Toy Kingdom. | Hot Focus will arrange deals for other outlets to sell Hot Focus products designed by Ink Elephant and Earthworks Fashion around the world. |
Partnering with our original four companies in the Philippines, Hot Focus will create a local market that can be expanded into a global market that will make us profitable.
Accountability for Descending Costs will connect local leader partners with the European manufacturing power by
Partnering with companies around the world, Hot Focus can become a local market leader in those countries and eventually use the best aspects of societies around the world.
This will create the best strategies for each country Hot Focus does business in.
If a firm gains a cost advantage for performing activities in its value chain at a cost lower than its major competitors, then it has flexibility to undercut competitors and offer greater value for money to its customers
Contingency Plan for Ascending Value We will connect local innovative BOP and mass vendors with the US marketing power by
The indigenous accessories designers may not want to sell American made products that they perceive to have monetary value over cultural value.
Hot Focus will sell global products first and use American strengths of marketing to prove to local companies that we want to help their brands succeed.
This can motivate them to help Hot Focus succeed as it will create a win-win situation for both companies