Mec Business Strategy/Value Proposition/4 P

We are aiming at understanding how Recreational Equipment INC. (REI) achieved a competitive advantage through their strategies and how they implemented those strategies. REI differs from the other sporting goods stores in their quality product selection, complements, and excellent brand name promotion. These qualities enable REI to sell merchandise at premium price levels (Morse, 2003).

The North Face was founded in 1966 in San Francisco, California by two hiking enthusiasts taking a chance on a dream. Douglas Tompkins and his then-wife, Susie Tompkins, sold their small, climber targeted, clothing brand to Kenneth “Hap” Klopp two years later. From a single storefront to a global brand, The North Face has enjoyed incredible success in their 50 years of existence. They produce high quality outdoor apparel, gear and footwear in countries all across the globe. The North Face is a market leader when it comes to technology and performance. It’s clothing and equipment lines are catered towards college students, climbers,

Chester chose to enter the sensor industry in 2016 as the niche cost leader. Our mission is to providing trustworthy products to our customer base. Our goal is to offer these products at a cutting edge price, with low overhead, at a high volume. By focusing on the Traditional and Low End segment of the market, Chester’s ability to achieve our mission made it possible to gain market share. Many aspects went into the logistics of the supply chain in order to carry out our operation. While the cost leader strategy is not always an opportune circumstance for the traditional segment, it allows us to offer lower prices to entice customers to purchase our products over other companies in the industry.

Costco’s business model is concentrated on generating high purchase levels and fast inventory gross revenue by extending members low rates on a controlled assortment of nationwide name brands and top quality private-label goods in a wide-ranging assortment. Costco’s attentive in the low-cost approach is focused on a limited purchase sector and out striving competitors by devising low down prices, consequently remaining proficient enough to achieve a niche consumers at a lower price.

Recreational Equipment Incorporated (REI) specializes in outdoor apparel and equipment as a national retail cooperative. As a cooperative for this firm, 5.1 million members consist of the consumers themselves and in turn receive a percentage of the firm’s profits every year, receive discounts on goods, and engage in board member voting. All in REI generates $1.93 billion in revenue. The community is also highly valued with devotion towards philanthropic activities and advocacy programs. REI was founded in the 1930s by Lloyd Anderson, his wife and 21 fellow mountain climbers in order to provide business to local mountain climbers at reasonable pricing. Today it has expanded to become the largest consumer cooperative in the U.S. Customer satisfaction

Analyze strategies for exerting the internal leadership needed to drive the implementation of strategic initiatives and improve operating excellence.

1. MM possesses a competitive position in this segment in terms of quality product offering and close customer relationships through high level of customer support.

In today’s highly competitive market, the continuous changes that are occurring in the social, politic and economic environment create serious challenges in the corporate world. Corporations cannot afford to do business as usual if they want to remain in the game and be successful. In order to achieve their goals and objectives, they need to evolve, adapt, learn and apply different new strategies that will help them secure long-run success and performance. Among those strategies, we are going to discuss ten of them and their advantages in connection with corporation’s goals and objectives.

It is finally time to launch your spring campaign for your outdoor equipment collection including high-tech camping, biking, and rock climbing gear that has been planning since December. The ratings for the new radio host that you enjoy has been mixed. He has a significantly higher ratings in the over-50 demographic, but overall his ratings have been lower than expected. Going forward I feel that you have a tremendous opportunity to market your line of products to a more mature demographic.

1. Describe the organizational structures and devices 3M uses to encourage entrepreneurial activity. Why do they work?

     Strong Products and Brands Global Presence High ethical standards High safety standards Highly influential market segment

The Clymb is known as a free private online community which is enabling members connect with outdoor athletes, enthusiasts and professionals. The firm was established in 2009 in Portland, Oregon by a school of outdoor industry veterans (The Clymb, 2015). The company is an outdoor, sales and marketing, privacy and E-commerce based Business firm which is operating its business almost all-over the world. The firm is the leading venue to the connection of outdoor athletes, enthusiasts and professionals. Exclusive arrangement with the Clymb’s partner companies or brands that allow the member access to price as low as seventy present below retail on footwear, apparel and gear from

However, MMC needs to improve its advertising strategy to increase brand awareness. Currently, it only uses its website to place its orders and customers can only notice this brand from word of mouth or some affiliate websites. MMC should use social media like Facebook or Twitter to advertize its products. It can also cooperate with other Carmelite churches or groceries to distribute its coffee packages. This is because over 133.5 million (150 million*89%=133.5 million) coffee drinkers in the United States brew their own coffee at home. And among them, about 30 million coffee drinkers prefer premium quality specialty coffees. MMC provides quality coffee that will attract these loyal coffee consumers, who are more willing to pay more to buy coffee made by high-quality fair trade and organic Arabica beans.

Finally Acme discovers the way to reduce the cost by 20% and they won the contract.  Omega may have won the battle, but Acme has won the war because its mechanistic structure fosters a concern for technical efficiency and cost reduction in what is a routine manufacturing environment. In this particular case, Acme decides to run a "tight ship" (mechanistic structure) in order to increase productivity and efficiency, and to decrease costs. The advantage of this strategy is that they can undersell their competition (Omega) by selling at a lower cost. Omega, on the other hand, is nearly too opposite. They run a more organic structure, which relies heavily upon communication, delegation and teamwork. This strategy allows Omega to effectively compete with Acme by stressing reliability and by placing emphasis on quality.

Among global manufacturers, offshoring, obtaining products and services from overseas, has been one of the most widely used strategies to take advantage of the arbitrage of labour cost. However, in recently years, reshoring seem to be the new trend in business as a recent survey conducted by the Boston Consulting Group found that 21 per cent of a sample of 200 executives of large manufacturers were either already relocating production to the US, or planning to do so within the next two years. A further 33 per cent said they were considering it, or would consider it in the near future. [1] Many well-known companies such as Google, General Electric, Caterpillar and Ford Motor Company are moving part of their production or adding new plants back in their country of origin.[3]