Capstone Project

Klassic Kinetics – Strategy vs Tactics

STRATEGIC CHANGES

· Expand product scope by acquiring HF Games

· Change their value proposition to emphasize higher quality and premium aesthetics

· Change value proposition to retailers by giving them a higher margin structure

· Change business model – stop use of distributors and sell direct to retailers

· Enhance business model and value proposition by offering major retailer custom, private label programs

· * Although not specified, it’s fair to assume they might have also expanded their geographic market to include Europe to whatever extent HF had distribution channels there.

TACTICAL ACTIONS

· Change specification on plastic for higher quality

· Move production from Mexico to Taiwan

· Increase retail pricing position

· Implementing a sales incentive program for sales staff

· Adding more customer service reps

· Shifting ad spending

· Increasing trade show presence

· Revising their website

· Designing and promoting a new logo/identity