2 February 2019
BUS 444 / Meilich
Chapter 1+2 TiP – Jolly Tree Optimization[for ch. 1+2:Mastering Strategic Management]
Jolly Tree Optimization Company Overview
Jolly Tree Optimization offers an eco-friendly and energy efficient Christmas Tree system that is seamlessly integrated with the JTO cell phone app. The trees utilize recycled, environmentally friendly materials to help conserve natural pine trees. All of the trees feature a led lighting system to cut down on energy usage. They are capable of displaying a variety of colors and strobe effects. The trees include a built-in speaker system, and the lights will change with the beats of the various songs that are played. A refillable scent system is also integrated into the trunk to give the tree that authentic Christmas smell that is emitted by a real tree. The star at the top of the tree provides a Christmas count down timer to display how much longer there is until Christmas morning arrives.
The Jolly Tree Optimization system cell phone app will allow the user to control the tree and take advantage of the various features it has to offer. These features include controlling the lights, the scent system, the Christmas timer, the music and the additional features that are included with our Jolly ornament line.
The trees are designed to work hand in hand with our Jolly Ornament line. These smart ornaments will automatically add content and features to the tree by simply hanging them on a branch. Whether it be content from a specific character, a digital picture display, or even a camera, the Jolly ornaments will allow the users to have a custom and fresh Christmas experience every year.
What is your business model?
In the text, a business model is defined as, “the process through which a firm hopes to earn profits.” Jolly Tree Optimization hopes to earn profits by having cheap manufacturing and labor costs allowing for a profitable mark up. JTO plans to use recycled materials and assemble their products overseas where manufacturing and labor costs are more affordable. They want to appeal to the eco-friendly and technological trends that are present in today’s market.
Jolly Tree Optimization plans to self-distribute at first to maximize profits, build better relationships with retailers, have more control over promotions, and to optimize the visibility of their full product range. Their products are seasonal, so this will give them greater profits allowing more money to be put back into developing the company for the next season. The smart ornament system is very versatile providing JTO with the ability to create products that are in line with what is popular during a certain Christmas season. This will help keep their products fresh in the minds of consumers.
They want to focus on selling their products to big box and specialty stores to optimize visibility to the right customers. The trees will come disassembled in flat boxes to decrease shipping costs. JTO plans to use interactive displays allowing customers to try controlling the system from a phone, and test out various ornaments on the tree. They also plan to focus on social media and internet advertising/promotions due to their product focusing on technology. Special offers will include bundles with download codes to be used in their app or ornaments coinciding with what’s popular at the time. This will help show consumers how customizable their system is right off the bat.
They want to tap into a new section of the Christmas tree market that will give users a more technologically custom experience. Once a customer buys a system JTO hopes that they will continue to purchase their ornaments and various add on features available in the JTO cell phone app.
What is your position relative to your competitors?
JTO’s competitors include other fake Christmas tree manufactures, real tree providers, and other ornament manufactures. What sets them apart from competition is their focus on preserving the environment, the product’s technologically advanced features, and affordable prices. JTO plans to be viewed as the Apple or Tesla of the Christmas tree market. JTO plans to tap into a new section of the Christmas tree market to show consumers what a Christmas tree is capable of, and how fun the experience can be for families. They hope to appeal to middle to upper-class consumers looking for the experience of having a real Christmas tree in their home without the hassle of maintenance and environmental harm. Once a consumer has purchased their system they can continue to add new features to their tree through JTO’s smart ornament line and phone app. This will keep customers shopping within our product line.
With current market trends showing that consumers value products that are economically friendly and easy to use, JTO hopes that both the physical and technical aspects of their tree will help pave a us a path to the top of the Christmas tree market. The current Christmas tree market lacks the excitement of progression as seen in other markets, and they want to bring that excitement to enhance families’ Christmas experiences from year to year. They plan to continue to innovate from year to year to keep the features of the system new and special. JTO wants to be seen as more than just a Christmas tree supplier but a company that truly cares about the happiness of their consumers.
Describe one of your emergent strategies? (why is it emergent? Why is it strategic?)
An emergent strategy is an unplanned strategy that arises in response to unexpected opportunities or challenges. If plans for the Jolly Tree Optimization system did not turn out to be as successful as planned, JTO would consider creating a product that was not restricted by the holiday season. This product would use the same app, ornament system, lights, and built in speaker but would utilize different kinds of trees. This new product line would be named Smart Tree Optimization, or STO for short. This name would allow the line to not be seen as a Christmas product, while still being identified as a product from the same manufacturer. These trees would be used as interactive decorations throughout a customer’s house. The scent system would be revamped to be used as an essential oil diffuser, and the smart ornaments would be replaced with other hanging decorations. The product would be both smaller and cheaper than the Christmas line. The STO line would also have the ability to connect to each other. This affordability and useful feature would hopefully lead customers to purchase several to create an STO system throughout the house. Then when Christmas comes around all of the products would work together, and the hanging ornaments/features would be interchangeable.
This STO line strategy is emergent because JTO faced an unexpected challenge of not making as much of a profit as predicted. This challenge was caused by only offering a seasonal product. The Smart Tree Optimization line is a response to this challenge. The STO line is strategic because it changes the identity of the firm. JTO went from only offering Christmas products while in season, to offering a more generalized product year-round. This change of identity allows JTO to reposition themselves and tap into new market segments.
What is your company’s vision?
A vision is what a company hopes to become in the future. Jolly Tree Optimization’s vision is, “to be the company that provides a fresh experience of happiness, excitement, and surprise to Christmas bringing families closer together year after year.” JTO wants their products to be the center of excitement when families are opening up their Christmas decorations. They want to become the first company families think of when decorating their houses.
Give one example of a SMART goal for your company.
SMART goals are goals that are specific, measurable, aggressive, realistic, and time bound. A SMART goal for Jolly Tree Optimization is, “to become the leading artificial Christmas Tree company by 2025 through showing that our product is the best of its kind for the consumer and the earth.” This goal is specific because it clearly states what is desired and how to go about achieving this goal. It is explicit rather than vague. The goal is measurable by accessing their sales data relative to the sales data of other companies at JTO’s retail locations. This data makes the goal quantifiable. The goal is aggressive because JTO is a new company as of Christmas 2019, so it will not be easy to convince consumers to switch from their established Christmas tree traditions. This goal is challenging yet attainable, which will test the abilities of the company and its employees. The goal is realistic due to the new attractive features and physical characteristics the JTO tree will bring to the market. If JTO focuses on marketing the tree in the right way, then this goal is feasible. Goals should not be too difficult to reach in the eyes of the employees because they will lose motivation. Lastly, the goal is time bound through the inclusion of a deadline. Jolly Tree Optimization hopes to reach this goal by 2025 giving the company and its employees five years to schedule their work time. A deadline helps increase overall motivation because there is a fixed date to work towards.
Multiple Choice Questions
Gap, Old Navy and Banana Republic have the same owners but sell clothing in different price ranges. This is an example of which of the 5 Ps of strategy?
a. Plan
b. Pattern
c. Position
d. Perspective
A mission statement covers all of the following EXCEPT:
a. Who are we?
b. The Past
c. The Present
d. The Purpose
e. The Future
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