STRATEGIC MANAGEMENT 6
TheRegal Forest Holding Co. Ltd is a group of businesses operating inCaribbean, Pacific, and the United States among other places. Thebusiness operates under a variety of brand names including Unicomer,Luck Dollar, and WeCare. The main business of the company isfurniture and appliance.
Oneof the strategic fits of the organization is the fact that it hasboth regional and international operation. The company’s expansioninto the international market has increased its customer base. In2008, the company opened its first branch in the USA at Brooklyn, NewYork. Another strategic fit includes a well-established brand. TheUnicomer Group of company is affiliated with popular and dominantbrands such as the Courts, Lucky Dollar, and WeCare. The organizationdoes also embrace social responsibilities aimed at enhancing familylives, environmental, economic, and social development. The companyhas also been expanding through acquisition. Majority of theaffiliate companies to the Regal Group holdings have been acquiredover time. Lastly, the company has experienced and visionarymanagement group that is focused on expanding the market intointernational market (Dyson & O`Brien 2008, p. 27).
TheCourts Company integrates various marketing strategies such asdiversifying its services to suit a wide range of clients. Forexample, the company sells furniture, appliances, optical, andelectronic products. In addition, it offers cash loan programs forcustomers who may require fast and instant cash. The company has alsoadopted a marketing strategy of pricing its products competitivelysuch that it can compete efficiently in the market. Another marketingstrategy the company has been using is locating its operations in keybusiness locations. Since the Courts Company has strong purchasingpower, it buys out existing business in established markets, thusboosting its sales significantly. For example, the company acquiredthe Unicomer Optical, which expanded its operation rangesignificantly. Courts Company also operates a vigorous promotioncampaign. This marketing approach comprises of various advertisingmethods such as radio, television, social media, and the traditionalprint platforms (Grieves 2003, p. 12).
Thevision statement of the Regal Group Holdings is, “achievingdevelopment, through leadership and uninterrupted improvementprocess, leading to the growth of the regional and lifestyle qualityof the Caribbean and Central America Families.” The implication ofthis vision is that the company aims at improving the lifestylecustomers in the region (Grieves 2003, p. 32).
Onthe other hand, the company’s mission statement is the leadingretailer in the Caribbean and Central American region. The strategicfit for the company to accomplish this mission has been providinginventive products, offering competitive hire purchasing plans, aswell as providing services tailored to the needs of the clients. Theorganization also provides high quality customer care services toensure above reproach customer satisfaction. Moreover, the companyhas a clear list of objectives the management uses to accelerate itsdevelopment (Grieves 2003, p.88).
CourtsCompany has strong purchasing power hence, the company does orderproducts in large scale. This makes it possible for the company topurchase products directly from the manufacturers instead of orderingfrom wholesale distributors. The company also has a well-developede-commerce business structure that enables the company to acquireproducts from both local and international manufacturersconveniently. The Courts Company has also been active in stockacquisition. It has purchased various companies such as the UnicomerOptical that has helped to diversify and increase the clientele ofthe organization. Originally, the company was specializing inappliance and furniture supply, but the organization diversified itsoperations to include a variety of other products (Dyson &O`Brien 2008, p. 11).
Thekey objectives of Regal Forest Holding Group of companies aremaximizing growth, profitability, and operation efficiency. Thecompany has been using a variety of tactics to accomplish theseobjectives. Among the key strategies, include selling innovativeproducts, staff development, aggressive branding, marketing andpricing, as well as investing in research and development that hasproven critical in the expansion and brand diversification strategies(Grieves 2003, p. 94).
Oneof the strategic ways forward for the company is providing uniqueproduct line that can suit the clients of a given place. Since thecompany is an international brand, and it serves clients with diverserequirements, the management has been striving to provide highquality services that are tailored to match the requirements of agiven market. In addition, the company’s can also enhance its rateof development through continued acquisition of established brands.Presently, most of the Unicomer’s best brands such as MyDollar wereacquired as established brands (Dyson & O`Brien 2008, p. 39).
However,the Courts Company has been experiencing diverse challenges such asmarket position. Both established and upcoming brands have increasedthe level of competition. Fortunately, the online retail services thecompany offers, as well as the credit plans such as thehire-purchasing plan has helped the company to gain an edge over itscompetitors. Similarly, as the company’s services are expandinginto international market, the management has been compelled to trainand recruit competent and flexible staff members who can operate ininternational environment (Thomas 2003, p. 21). The cost of trainingand compensating staff members overseas has proven costly for thecompany.
Frommy knowledge, one of the main strategic fits the Courts business isaiming to expand its services in the future is penetrating into theestablished markets. For example, the company established its firststore in Brooklyn, New York in 2008. The US offers a big and stablemarket for consumer durable products the company distributes. SinceCourts went into receivership in 1990s, the company has the companyhas reestablished its services through merges with the South AmericanRegal Forest Holding Group that is affiliated to the Unicomer (Thomas2003, p. 37).
Themain challenge the company is experiencing because of its changingoperation strategy is increased cost for training and hiring staffmembers. In addition, the cost of research and development for theorganization’s proprietary operation plans in the new market hasaffected the overall profit for the company (Thomas 2003, p. 23).
DYSON,R. G., & O`BRIEN, F. A. (2008). Strategicdevelopment: Methods and models.Chichester, England: Wiley.
THOMAS,R. J. (2003). Newproduct development: Managing and forecasting for strategic success.New York: J. Wiley.
GRIEVES,J. (2003). Strategichuman resource development.London [u.a.: SAGE.