very, and the company’s poor promoting strategies are the barriers of future development. Opportunities: the increasing attention of baby product from parents, the more mature and segmented furniture market, professional design and technical support. Threats: the company has to face more intensive competition with the entry of more and more companies in this market, lack of strong product feature.
Strengths
Weaknesses
advanced in functional and durable property, value co-creation, social media, free delivery and assemble
narrow consumer scope and geographic market, less product type, gap between payment and delivery, lack of promotion strategy
Opportunities
Threats
increasing attention from parents, the more mature market, technical support
Intensive competition, lack of strong product image
Competitor analysis
IKEA is the well-known household furniture firm with the characteristics of low price, reliable quality and easy-shopping environment (Nirmalya, 2006). In comparison with IKEA, the products in KUB nursery seem more expensive and better quality. However, most consumers consider IKEA as the primary furniture manufacturer due to its strong brand value and affordable price.
Tutti Bambini is the another main supplier of baby furniture including swinging cribs, cots, cot beds, high chairs, baby mattresses and cot top changers. Tutti Bambini owns the similar quality standard but a broader range of product. The firm is seen to focus on the differentiation strategy where customers can find more options.
Lullabys is a one stop shop for customers to buy nursery & baby products for newborns to three years old. Comparing with KUB, Lullabys has multi-brand with wider product range, such as pushchair, playtime and feeding products. However, Lullabys uses less advertising and promotion than KUB. It offers a consuming efficiency since parents can find almost everything in this store.
BCG matrix is composed four areas: star, cash cow, question mark and dog via analyzing market share and market growth analysis (Grant, 2010). KUB’s market share is increasing but relatively low while the market of baby/children furniture poses a fasting growing area. The current situation of KUB is the question star in BCG with a potential of enlarging market share. If considering the perceptual mapping, KUB might be in the area of high quality and high price. In addition, taken general strategy into account, KUB adopts the strategy type as focused strategy since the company chose a specific and niche segment-baby furniture (Grant, 2010). The competitive advantage of KUB is reliable quality, fancy design, customer awareness, service sense.
Ansoff matrix consists of market penetration, product development, market extension and diversification according to the new or existing market and product (Kotler and Armstrong, 2007). Baby furniture is the existing product while the market can be defined as a niche-the new market. Hence, in line with the Ansoff matrix, the market objectives can be categorized as market extension. The firm should educate the consumers that baby furniture market has been building up where they can find the product with full portfolio, good design and reliable quality.
Short-run strategy<
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