Crafting & Executing Strategy Model
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The competitive forces that confront the J Crew are strong but they are not capable of subduing the efforts of the company. Based on the illustration of the porters five model, the J Crew business would be subject to the participant’s powers. The supplies power is the development of the prices to go higher due to the influence of the suppliers. In relation to the supplier power, the suppliers to the business have the potential of driving up the business prices. Based on the influence that the suppliers have, they decide to drive up the prices of the materials that the business uses in its operations.
In the context of the suppliers being few, the J Crew business is susceptible to the impact that the suppliers would bring to its operations (Thompson et al. , 2013). The J Crew deals with different suppliers who aid its operations by ensuring that the business is equipped with the appropriate raw materials that could be used in the manufacturing of the apparels. Therefore, the business gains from the fact that the suppliers cannot control its operations. The supplier power is limited in the sense that the J Crew business may choose to work with other companies from the supply of its products than depending on one supplier.
The Buyer power The buyer power controls the business operations based on the fact that the business is reliant on a section of buyers. Therefore, the buyers would influence the prices that the company would tag on its commodities. The J Crew business in the context of the discussion is affected by the buyer power. This is because, in its operations, the J Crew business needs the support of the buyers. The buyers can shift to purchase the product that they need from a different supplier based on the interest that they have and the budget that they also have (Thompson et al. , 2013).
The J Crew business lowers the prices of the apparels that its sells because the other competitors pose a threat in the operations the J Crew in the market. The competitive rivalry The competitive rivalry is developed in the sense that the competitors to the business are many hence they pose a threat to the business. The J Crew business is subject to a market that has competition based on the fact that they produce clothes targeting a segment of the market. The market is characterized by diverse companies that produce the same products hence the J Crew business does not have control of the market (Thompson et al. , 2013).
The impact of different companies in the market has a significant effect on the control that the business might have on the market. Threat of substitution In this context, the customer may have a different way of finding the product that they are offered by the company. Thus the company may not have an impact in the control of the market. The J Crew business is subject to the threat of substitution in that their customers can find an alternative of acquiring the apparel that they sell from different stores (Thompson et al. , 2013). Thus, they do not have the market control.
Threat of new entry In so far as the business is concerned, there are chances that there could be new entrants in their operations. Therefore, the susceptibility of the J Crew business in the apparel manufacturing business is evident based on the fact that their operations are limited. Regarding the strategic group mapping, the J Crew business is positioned on the broad geographic market scope. In addition, the business is positioned in the low priced products and the quality is also good. In connection to the specialty retail, the J Crew business is well positioned.
This is because, in the business uses the low pricing for its products to attract the buyers and also ensures the delivery of quality services (Thompson et al. , 2013). In service delivery, the development of the business should consider the integration of the elements of which would attract the buyers. Hence the strategy of lowering the prices as well as delivering quality goods is an effective way of maintaining the business in so far as the strategic group mapping is concerned. The success factors in the market for specialty retailers are embraced by the pricing that the company has put in the market.
The prices of the products that are delivered by the business are encouraged by the competition in the market. The buyers would choose to buy products from the J Crew business due to the low prices which they offer to them. In line with the competitive rivalry, the business had developed the aspect of ensuring that they provide quality services to the customers (Thompson et al. , 2013). Thus, alongside the low prices, the J Crew also serves its customers with quality products. On the shortcomings which may subject the company to a competitive disadvantage, the business experiences competition and price challenge from the market.
In addition, identification and exploitation of new market are also a challenge to the business. Strength The J Crew company has the advantage based on the fact that it had established itself and built its brand. The customers are well acquainted with the products of the J Crew business hence they are supportive of the company regarding its operations in quality delivery. Weakness The existent competition in the market deprives the J Crew business an opportunity of controlling the market. Hence their activities are limited to the interests of the market.
The legal policies are also influential in the development and achievement of the objectives of the business (Thompson et al. , 2013). The policies can impede the realization of the objectives in the sense of controlling the pricing of the goods produced. Opportunities In as much as the business operations of the company are concerned, the production of the forever twenty-one apparels offers the business an opportunity of venturing into others (Thompson et al. , 2013). The brand had been established by the company hence they are capable of introducing other apparel for different age groups hence increasing the market.
Threat The business would experience the threat of substitution as well as the entry of another business in the market. Based on the fact that the business is exposed to competition, they need to produce more products of quality as well as maintain the prices that would attract the customers. The components of the J Crew business are the primary objectives and the support activities. In the primary activities, there is the supply chain management in which the business has the assets that are associated with the energy that is used in the company.
Operations of the company entail the transformation of the raw material into the final product. Thus, the J Crew business has its activities that help in the generating of the final product. This is done by ensuring the support of the machinery and the equipment. In addition, the business would consider the distribution element. Distribution would be characterized by the fact that the business has its modes of transportation in which they ensure that the product reaches the customers within their stated time (Thompson et al. , 2013).
Sales and marketing entail the activities of the J Crew business in the process ensuring its products are known for the consumer base. The J Crew used different promotional strategies such as the electronic and the print media to ensure that the products and the services are known to the potential customers. Services are the activities that the business engages in order to aid the promotion of its activities. The supportive activities in the business entail the aspects of human resource developments as well as the general administration of the business.
The management of the J Crew business is effectively participating in the activities of the business. Thus, the business had been able to develop its brand and market it in the group mapping (Thompson et al. , 2013). The human resource within the organization has also been subject to encouragement hence they are motivated to work in the achievement of the objectives of the business. The J Crew business strategy of lowering the prices of t the goods that it produces is among the elements of its success. The J Crew business penetrates the market potential by attracting the customers and delivering quality products.
The integration of research and creativity in the production process ensures that the business is effectively participating in the market. In connection with the competitive strategies that the J Crew uses, there is the integration of the broad differentiation strategy (Thompson et al. , 2013). Thus, the business has a broad cross-section of the market that it operates in. The J Crew business offers its customers an opportunity to enjoy the quality product at low prices. Thus, they are capable of maintaining the already acquired customer base as well as attract the new customers.
In the contexts of the product line, the J Crew business has established a wider range of product and wide selection of choices of the customer. The business strives for the superiority of their products hence they are capable of maintaining the quality and the provision of market value. From this point of view, the development broad differentiation strategy is an important aspect.
Thompson, A. , Peteraf, M. , Gamble, J. , Strickland III, A. J. , & Jain, A. K. (2013). Crafting & Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill Education.