Strategy and Implementation
Etoile is a sole trader business that is operated by Mei Gomes. However being in the industry of interior design, there is a need to ensure that an effective plan is put in place to ensure the owner is in control. This section will make use of porter’s five forces to determine whether or not the company is competitive enough to survive after being launched. First, in relation to competitive rivalry, it is clear that this business targets both the public and private companies, as well as individual customers (Rice 2010, p. 376). This is an industry that has been present for quite some time meaning that there are many such companies which have already been established.
Therefore, a perfect strategy needs to be put in place to attract them to this startup business, keeping in mind that they probably are already loyal to other companies. At this point, it essential to consider the actions that this small business will do, to outshine the bigger companies that have been around for years. The best approach is to consider an advertisement strategy that will make it known all over much faster than relying on word of mouth. The company can also advertise itself through the product quality offered to customers (Rice 2010, p. 378). When these products are long lasting, the customer will most likely come back and bring a long a few friends who also want a lasting solution.
Porter’s forces also emphasizes on the importance of supplier power. Being a new start up, this company will need a reliable supplier who will offer high quality products at cheap prices. At this point, the company cannot manage to offer high prices than those who are already considered the industry price pace setters. Therefore, it can use a marketing mix on various platforms that will spread the message far and wide that a new company has been opened which offers reasonable prices for its goods and services. In addition, it is necessary to ensure that before opening up, the company will have stocked on a variety of products so that the place becomes a one stop shop for interior design goods (Rice 2010, p. 379). This is one feature which tends to attract customer since many do not like moving from store to store in search of the products they need. This step will also take into account the force of buyer power as it will ensure that they find it difficult to leave the company in search of another.
Also, Mei Gomes needs to ensure that she employs enough shop assistants who have the required background on interior products. They should also be capable of offering advice to customers who come in search products while still undecided. They need to know about various designs of a single product such as curtains or tiles among other products. They need to have the expertise that will promote positive customer relationships, hence making them feel valued in the company (Rice 2010, p. 381). This feeling of comfort will encourage them to become loyal in this company where they are treated well. Unfortunately, despite the approach being taken, it is evident that there is a high threat of substitution not unless the company ensures that it offers outstanding customer services and products at all times. In addition, there is also the threat of new entry as interior design products are so easy to copy. Therefore, it is important to ensure something unique, such as the same of original antiques.
The main competitors of this company, therefore, are the already established enterprises which have loyal customers and offer similar products. However, as for the other companies, Etoile seems to have a competitive edge as it offers quite a variety of products and features qualified personnel.
Bibliography
Rice, JF 2010, ‘Adaptation Of Porter’s Five Forces Model To Risk Management’, Defense AR Journal, 17, 3, pp. 375-388, Business Source Complete, EBSCOhost, viewed 13 December 2017.
