Business Strategy Case Study: Tartan Corporation

3342 WordsDec 4, 201014 Pages
Management Accounting Part A : 2-36: Strategic positioning: Describe Tartan 's competitive strategy. On the basis of this competitive strategy, what recommendation would you make to task force? As an industrial leader in home lighting system manufacturing, Tartan Corporation has been existing for more than 90 years, with its brands and products firmly holding the proprietary in the market, while competition and potential threats, on the contrary, are impelling Tartan Corp to strengthen itself strategically. Based on the charts given in the case material, products are well developed during different historical stages and distributed among various markets, yet sales volume of some products are declining while others increasing. Thus…show more content…
Apart from the high manpower cost of Classic, the imbalanced support in different regions is also a weak point for the sake of overall development, according to Tom Richter, the firm 's sales manager. Besides, considering the sustainable expansion of Tartan, the fact that few labour want to learn new skills critically generates a demerit of the growth and learning for Tartan. Threats of Tartan Corporation mainly includes the substitutes of home lighting systems, for instance, lava lamp, which is more used as a decoration rather than illumination, may be substituted by other decorating products. In addition, minor manufacturers which in together hold a majority of the market may try to expand their territories through merger and acquisitions. 2-38 Value Chain Analysis Develop a value chain of six to eight items for Tartan Corp described in Problem 2-36, why would the value chain be useful to a firm like Tartan? The basic principle in defining the value chain, according to Michael Porter (Porter, 1985), is that the activities include a variety of disaggregations from the below three perspectives. First, they have different economics, implying that these activities are functioning in different segments of the market. Second, even though the economics differentiation is not that evident, isolated activities should have a potential impact for it. Third, value-adding activities have significant input scale.
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