Week 2 Discussion
Date: April 1, 2022
To: Joan Smithfield
From: Alexis Jenkins
Subject: Analysis of a New Product Line
A. Porter’s Competitive Advantage model would apply to Smithfield’s Board of Directors issue when
trying to figure out what to do when it comes down to being different from competitors and cost. The
Directors are stuck between deciding whether to produce an exclusive furniture line or mass-
producing/marketing a furniture line. If, Smithfield was to produce an exclusive furniture line it
would be only marketed to certain customers, with high pricing, and limited quantities of furniture in
this line. But, on the positive side, this would allow for the company to have an advantage because
the exclusive line would produce products different from its everyday products allowing for an
expansion of variety and different styles and choices to choose from. This is an advantage the
company would have in the industry because there are a lot of competitors who are producing the
same items but at different cost points. This would allow the company to see how the exclusive line
does with customers and possibly provide projections for the future on what to produce and how to
go about producing it. Mass-producing/marketing a furniture line is the next option that the company
was looking to do so. Doing this is more of an integrated strategy when comparing it to Porter’s
Competitive Advantage Model. This would allow for the company to produce mass amounts of
furniture using new modernized production plants and producing a variety of different types of
furniture. The only downfall to this strategy would be that it would be very costly on the production
side of things; the company would have to price products at various price points which could cause a
loss in profits for the company. The problem with mass production can be furniture not selling,
reducing prices to get rid of inventory, and selling to third-party companies for discounted rates.
Also, mass-marketing costs a lot of money as well so, in the end, the company wants to make sure
they are getting back what they are doing to market the products.
B. The Differentiation Leadership Strategy is the best strategy for Smithfield company to pursue.
Differentiation Leadership Strategy is a strategy that allows for products and services to have special
features and has high value for their target customers (Lumen Learning, n.d., “Stages and Types of
Strategy” para. 12). And these features must be observed by the buyers to be better than what the
competition offers and it is worth the additional money (Lumen Learning, n.d., “Stages and Types of
Strategy” para. 12). The differentiation strategy is best for this company because it reduces the
amount of competition in the industry, hard for new companies to enter the industry, and copies
products. Compared to the low-price leadership strategy which is a strategy used to provide low-cost
options to its customers (Lumen Learning, n.d., “Stages and Types of Strategy” para. 12). A lot of
times this strategy is used to make similar goods or services at a lower cost than competitors (Lumen
Learning, n.d., “Stages and Types of Strategy” para. 12). This is not a strategy Smithfield company
should use because it does not line up with the plans that the company has for the business.
Smithfield is looking to either create an exclusive product line or mass produce/market products and
a lower price strategy would only cause the company to lose money because it would take more
material/equipment to produce those products for consumers. It would be best that Smithfield utilizes
its new manufacture and equipment it must have to create different products for consumers to
purchase. Which expands its product line as well as provides quality products to its consumers.
C. The next step for the Smithfield company would be to gather everything they need to produce the
furniture line such as materials, fabrics, designs, drawings, and quantity. This is so that the company
knows how much it will have to spend on producing the line. From, there the designs will need to be
approved and then headed to manufacturing centers to start the production process, while the
furniture is getting ready for production it will be best to start marketing the furniture letting
customers know what is soon to come from the company. A way the company market can be to do a
pre-sale allowing customers to buy the furniture before it is produced that way, they are able to get it
before it sells out. Another good marketing strategy would be social media marketing this is big
because everyone uses social media, and it is convenient for shoppers because they are able to
purchase what they want right online. The best way to do social media marketing would be to
incorporate social advertising, showing the content, and using visuals (Social Media Marketing for
Furniture Stores, 2021, para 8-10). Social advertising would be using major social media platforms to
create advertisements to attract customers' attention. Creating ads will catch the customer's eye and
allow them to click the link to go to the product page and possibly purchase something (Social Media
Marketing for Furniture Stores, 2021, para. 8). Another way is making sure to engage with users,
making sure to comment back when users leave comments and answer any questions about products
users might have. Lastly, making sure to incorporate visuals of all products, providing clear and
accurate product pictures for customers to see will also help with marketing because users like to see
what they are buying and make sure what they see is what they are going to get (Social Media
Marketing for Furniture Stores, 2021, para. 10). Overall Smithfield, should start marketing the line to
get buyers excited for what is coming, offer pre-sale to buyers to not only give buyers a chance to get
the product first but to see if the products are going to sell, and lastly market through social media to
help gain exposure.
References:
Lumen Learning. (n.d.). Principles of management. https://courses.lumenlearning.com/wmopen-
principlesofmanagement/
Social Media Marketing for Furniture Stores. SocialGeeks. (2021, January 4). Retrieved April 1,
2022, from https://www.socialgeeks.in/social-media-marketing-furniture-stores-2/
