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To:c Joanc Smithfield,c CEOc ofc Smithfieldc Customc Furniture
From:c Nicolec Wars,c Seniorc Analystc atc Smithfieldc Customc Furniture
Date:c Aprilc 4,c 2022
Subject:c Recommendationsc forc Newc Furniturec Productc Line
A.c Porter’sc competitivec advantagec modelc demonstratesc thec twoc meaningsc
forc ac low-pricec leadershipc strategyc andc differentiationc leadershipc strategy.c
Thesec twoc modelsc explainedc willc assistc withc thec issuec thatc Smithfield’sc
Boardc ofc Directorsc hasc whenc decidingc onc howc toc diversifyc thec companyc
withc thec twoc optionsc forc ac newc furniturec productc line.
Accordingc toc principlesc ofc managementc (n.d.),c thec low-costc strategyc seeksc toc
leadc inc thec productionc ofc comparablec valuec inc goodsc forc ac lowerc costc thanc
competitors.c Thec largec volumec ofc goodc soldc toc mostc customersc enablesc ac
profitc (Principlesc ofc Management,c n.d.).c Smithfield’sc optionc forc ac mass-
produced,c massc marketedc furniturec linec fallsc withinc thec focusedc low-costc
strategyc toc appealc toc ac segmentc ofc thec overallc market.
Differentiationc leadershipc strategyc isc thec distinctionc ofc goodsc thatc offerc
uniquec featuresc withc highc valuec forc targetc market.c Thec valuec thatc makesc itc
worthc thec extrac costc mayc comec inc thec numberc ofc features,c qualityc ofc thec
features,c orc customerc servicec (Principlesc ofc Management,c n.d.).c Thisc focusedc
differentiationc strategyc relatesc toc exclusivec furniturec linec thatc wouldc appealc
toc ac targetedc segmentc ofc thec furniturec market.
c
B.c Smithfieldc Customc Furniturec hasc beenc inc businessc sincec 1903c andc hasc ac
focusc ofc sellingc reasonablyc pricedc furniture.c Recognizingc overc thec pastc 20c
yearsc thatc thec reasonablyc pricedc furniturec marketc hasc becomec saturatedc
withc thec competition.c Inc additionc to,c financialc growthc withinc thec workforcec
ofc womenc holdingc professionalc full-timec occupations.c Thec bestc strategyc forc
Smithfield’sc isc ac focusedc differentiationc strategyc byc offeringc anc exclusivec
furniturec line.c Smithfieldc Customc Furniturec isc knownc forc reasonablyc pricec
furniture,c soc ac low-costc mass-produced,c massc marketedc furniturec wouldc notc
alignc withc businessc plan.c Thec growthc inc thec workforcec withc womenc workingc
professionallyc full-timec makingc moneyc willc alignc withc exclusivec furniturec linec
thatc Smithfieldc canc offerc ac targetedc marketc ofc workingc women.
c
C.c Joanc Smithfield,c CEOc shouldc completec ac SWOTc analysisc ifc shec hasc notc
donec soc already.c Thisc willc identifyc thec internalc strengthsc andc weaknessesc
alongc thec externalc opportunitiesc andc threatsc factorsc forc Smithfieldc Customc
Furniturec (Saylor,c 2014).c Examiningc thec company’sc resourcesc andc
capabilitiesc againc alongc withc thec valuec chainc toc chartc productsc beingc createdc
andc soldc (Saylor,c 2014).c Accordingc toc Saylorc (2014),c ac competitivec profilec
matrixc (CPM)c canc identifyc thec keyc competitorsc soc ac comparisonc canc bec
conductedc withc industryc criticalc successc factors.
c
c References
Saylorc Foundation.c (2014).c
Managingc Firmc Resources
.c Chapterc 4.c Masteringc
Strategicc Management.
https://leocontent.umgc.edu/content/dam/equella-
content/bmgt495/Chapter4_ManagingFirmResources.pdf
c
Lumenc Learning.c (n.d.).c
Principlesc ofc Management
.c Environmentc andc
Strategicc Management.
https://courses.lumenlearning.com/wmopen-
principlesofmanagement/chapter/stages-and-types-of-strategy/
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