Organizational Competitive Positioning Analysis
The world of business is, in recent days, becoming brutal. As a result, only the fittest can comfortably survive in the sector. Competition has significantly increased among organizations. Every organization is, therefore, struggling to have an enlarged market share as compared to other similar operators (Edeling & Himme, 2018). It is due to this that organization managers have become very sensitive in the decisions they make. The choices include; kind of culture they embrace, the type of strategies they put in place, and the nature of the employees. Organizations are trying to position themselves in a manner that will help them to gain competitive advantage over the rest. One of the ways in which organizations use to enhance their market share is through the change of business strategies. However, there are various business strategies; hence for this case, changing the market strategy is the ideal approach to enlarging the market share. This paper tends to provide an analysis of competitive organizational positioning using Chilwell Global Cosmetics Co. as the case organization.
Chilwell Global Cosmetics Co.’s mission is to enhance customer experience and satisfaction through the provision of high-quality cosmetics and to promote efficiency, social responsibility, and competition. Likewise, the company’s vision is to become among the leading dealers of cosmetics across the globe. The needs of its customers drive the company. The central focus of the company is, therefore, to put the interests of the customers at the upfront. In this case, the primary interest of the customers is obtaining quality products and services at an affordable price. Consequently, most of the customers’ demands are in line with the policies and the strategies of the company. For instance, the company has always stimulated customers’ needs by setting low prices for its cosmetics. The company is setting low prices for the products as long as it attains some profits, and the cost of production remains low. Thus, the strategy has helped to attract more customers who contribute to the improvement of the net earnings of the company. Conversely, the company is directed and governed by the chief executive director through the use of department directors. The department directors usually report to the executive director about everything that is taking place at the grassroots where the organization’s main premises and other branch premises are found.
Furthermore, SWOT analysis for any organization, in an attempt to enhance its market share (Gürel & Tat, 2017). It involves analyzing the strengths, weaknesses, opportunities, and threats that an organization has. To begin, the company’s strengths include; its capability to expand to the international level, having a small number of employees who require little supervision, and the possession of experienced employees. Secondly, the weaknesses include; competition from big players and lack of representatives in some areas. Thirdly, the opportunities are; technological advancements across the globe and quick access to finances from the financing institutions. Lastly, the company is under threats like; cash flow problems, government policies such as taxation, and the over capacitated nature of the market.
On the other hand, GE 9 Cell matrix is used as a tool that gives a systematic approach for various business corporations to select the best investment from the business units. The table below presents an example of the matrix model that can be used by the case Company.
Business unit strength against market attractiveness
| High | Medium | Low | |
| High | Invest high | Invest high | Hold |
| Medium | Invest high | Hold | Harvest |
| Low | Hold | Harvest | Harvest |
This model will help the company to determine the strength of a business unit in a corporation.
Currently, the company is operating on average grounds with a medium market share. The current position can be attributed to various approaches. Some of the critical strategies for the position are; the company’s innovative and technological approaches. In essence, the company has a very innovative and creative workforce. The workforce strives to come up with new ideas in the company that are crucial to the growth of the company. The teams in the company are committed to coming up with new ideas and solutions to meet the growing market demands (Hon & Lui, 2016). On the other hand, the company relies on modern technologies to enhance various processes at the company. For instance, the company is equipped with effective communication technologies that help to improve communication within the organization. Besides, the company has recently adopted the latest trends in keeping all the records it holds. These two approaches have helped the company to improve its position in the market.
An analysis of the company’s current position illustrates that more gaps need to be filled for the company to be more competitive and for it to achieve its long-term goals. As a result, the company has some future strategic goals to accomplish this. First, the company is thinking of improving the business into an electronic market. The E-Cosmetics Company will be able to conduct most of its transactions electronically. This strategy will not only enhance the speed of processes but also expand the company’s market share. This is because the e-business will be able to reach more people in more places. Another strategy is; changing brands from time to time to avoid boredom among the customers.
Lastly, analyzing the current positions of the company entails various assumptions. For example, in the case company, I assume that the competitive market only deals with a single product line of cosmetics. Likewise, I think that the cost of production is not much significant. Lastly, the current position of the company is not affected by other players in the value chain.
References
Edeling, A., & Himme, A. (2018). When does market share matter? New empirical generalizations from a meta-analysis of the market share–performance relationship. Journal of Marketing, 82(3), 1-24.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).
Hon, A. H., & Lui, S. S. (2016). Employee creativity and innovation in organizations. International Journal of Contemporary Hospitality Management.