Kit Hinrichs at Pentagram A Case Solution

The Harvard Business Review published a case study that primarily focuses on Kit Hinrichs at Pentagram A. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Kit Hinrichs at Pentagram A has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Kit Hinrichs at Pentagram A using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Kit Hinrichs at Pentagram A faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Kit Hinrichs at Pentagram A to ensure that the company is able to respond to all the changes in the macro-environment. This is because Kit Hinrichs at Pentagram A cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Kit Hinrichs at Pentagram A will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Kit Hinrichs at Pentagram A.

• It is important for Kit Hinrichs at Pentagram A to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Kit Hinrichs at Pentagram A by impacting imports and exports.

Economic

• Kit Hinrichs at Pentagram A can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Kit Hinrichs at Pentagram A, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Kit Hinrichs at Pentagram A with more investment opportunities.

• The flexibility in the labor market allows Kit Hinrichs at Pentagram A to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Kit Hinrichs at Pentagram A to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Kit Hinrichs at Pentagram A to develop and align communication as well as marketing strategies accordingly.

• Kit Hinrichs at Pentagram A has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Kit Hinrichs at Pentagram A to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Kit Hinrichs at Pentagram A should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Kit Hinrichs at Pentagram A to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Kit Hinrichs at Pentagram A should adopt eco-friendly products to establish better relationships with the stakeholders.

• Kit Hinrichs at Pentagram A can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Kit Hinrichs at Pentagram A should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Kit Hinrichs at Pentagram A as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Kit Hinrichs at Pentagram A can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Kit Hinrichs at Pentagram A’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Kit Hinrichs at Pentagram A.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Kit Hinrichs at Pentagram A can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Kit Hinrichs at Pentagram A operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Kit Hinrichs at Pentagram A operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Kit Hinrichs at Pentagram A to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Kit Hinrichs at Pentagram A. The company can also switch suppliers for more reasonable pricing.

• Kit Hinrichs at Pentagram A can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Kit Hinrichs at Pentagram A industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Kit Hinrichs at Pentagram A can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Kit Hinrichs at Pentagram A can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Kit Hinrichs at Pentagram A operates.

• Expensive substitutes are available in the industry of Kit Hinrichs at Pentagram A, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Kit Hinrichs at Pentagram A operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Kit Hinrichs at Pentagram A operates has highly differentiated products, making it difficult for companies to win each other customers.

• Kit Hinrichs at Pentagram A can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Kit Hinrichs at Pentagram A can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Kit Hinrichs at Pentagram A to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Kit Hinrichs at Pentagram A has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Kit Hinrichs at Pentagram A to have a high level of customer engagement (Rizaldi, 2015).

• Kit Hinrichs at Pentagram A has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Kit Hinrichs at Pentagram A has a strong brand image in the market.

• A low-cost structure of Kit Hinrichs at Pentagram A has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Kit Hinrichs at Pentagram A is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Kit Hinrichs at Pentagram A has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Kit Hinrichs at Pentagram A on its research and development is comparatively less to other competitors of the market.

• Kit Hinrichs at Pentagram A uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Kit Hinrichs at Pentagram A operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Kit Hinrichs at Pentagram A. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Kit Hinrichs at Pentagram A can take it as an opportunity to expand its online presence.

• Kit Hinrichs at Pentagram A can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Kit Hinrichs at Pentagram A can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Kit Hinrichs at Pentagram A to expand its operations in multiple countries.

• Kit Hinrichs at Pentagram A can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Kit Hinrichs at Pentagram A, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Kit Hinrichs at Pentagram A to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Kit Hinrichs at Pentagram A.

• There has been constant pressure on Kit Hinrichs at Pentagram A to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Kit Hinrichs at Pentagram A.

VRIO Analysis

Kit Hinrichs at Pentagram A uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Kit Hinrichs at Pentagram A has a strong brand image and engages in corporate social responsibility.

• Kit Hinrichs at Pentagram A has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Kit Hinrichs at Pentagram A is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Kit Hinrichs at Pentagram A focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Kit Hinrichs at Pentagram A has been able to penetrate the market through its ability to raise large funds.

Rare

• Kit Hinrichs at Pentagram A operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Kit Hinrichs at Pentagram A has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Kit Hinrichs at Pentagram A has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Kit Hinrichs at Pentagram A is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Kit Hinrichs at Pentagram A is its high-quality products. These products have allowed consumers to make repeat purchases.

• Kit Hinrichs at Pentagram A operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Kit Hinrichs at Pentagram A to attract more customers.

• Kit Hinrichs at Pentagram A has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Kit Hinrichs at Pentagram A maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Kit Hinrichs at Pentagram A to explore more product development opportunities.

• Kit Hinrichs at Pentagram A is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Kit Hinrichs at Pentagram A that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Kit Hinrichs at Pentagram A to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Kit Hinrichs at Pentagram A to formulate effective strategies to achieve the company objectives.

Product

• Kit Hinrichs at Pentagram A has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Kit Hinrichs at Pentagram A to its customers. These distinctive products are not easily available at competitors.

• The products of Kit Hinrichs at Pentagram A are of higher quality, and thus, customers pay more prices for these products.

• Kit Hinrichs at Pentagram A designs products with traditional designs giving customers more product variety.

• Kit Hinrichs at Pentagram A offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Kit Hinrichs at Pentagram A to its customers.

Price

• Kit Hinrichs at Pentagram A follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Kit Hinrichs at Pentagram A for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Kit Hinrichs at Pentagram A to its customers.

Place

• Kit Hinrichs at Pentagram A uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Kit Hinrichs at Pentagram A globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Kit Hinrichs at Pentagram A has partnered with delivery service companies to distribute its products effectively to consumers.

• Kit Hinrichs at Pentagram A has also adopted an omni-channel distribution system.

Promotion

• Kit Hinrichs at Pentagram A uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Kit Hinrichs at Pentagram A to increase brand awareness.

• Kit Hinrichs at Pentagram A takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Kit Hinrichs at Pentagram A also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Kit Hinrichs at Pentagram A to attract and retain customers.

Value Chain Analysis

Kit Hinrichs at Pentagram A can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Kit Hinrichs at Pentagram A’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Kit Hinrichs at Pentagram A has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Kit Hinrichs at Pentagram A are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Kit Hinrichs at Pentagram A has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Kit Hinrichs at Pentagram A invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Kit Hinrichs at Pentagram A to effectively devise and build sales and marketing activities.

• Kit Hinrichs at Pentagram A offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Kit Hinrichs at Pentagram A has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Kit Hinrichs at Pentagram A has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Kit Hinrichs at Pentagram A uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Kit Hinrichs at Pentagram A has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Kit Hinrichs at Pentagram A are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Kit Hinrichs at Pentagram A can increase the capacity of its production so it can reach more of the customers in its existing market.

• Kit Hinrichs at Pentagram A can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Kit Hinrichs at Pentagram A in marketing and sales activities to increase the chances of successful market penetration.

• Kit Hinrichs at Pentagram A can design and develop a content that increases customer engagement within a particular marketplace.

• Kit Hinrichs at Pentagram A can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Kit Hinrichs at Pentagram A to penetrate the market.

• Kit Hinrichs at Pentagram A can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Kit Hinrichs at Pentagram A can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Kit Hinrichs at Pentagram A to mitigate the risk factors, and to gain customer groups of the market.

• Kit Hinrichs at Pentagram A can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Kit Hinrichs at Pentagram A to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Kit Hinrichs at Pentagram A for growth purposes. This will also take into consideration the cultural differences.

• Kit Hinrichs at Pentagram A should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Kit Hinrichs at Pentagram A.

• Kit Hinrichs at Pentagram A should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Kit Hinrichs at Pentagram A should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Kit Hinrichs at Pentagram A can come up with new improvements and modifications in the existing products to attract the market.

• Kit Hinrichs at Pentagram A should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Kit Hinrichs at Pentagram A to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Kit Hinrichs at Pentagram A can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Kit Hinrichs at Pentagram A can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Kit Hinrichs at Pentagram A, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Kit Hinrichs at Pentagram A can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Kit Hinrichs at Pentagram A should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Kit Hinrichs at Pentagram A should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Kit Hinrichs at Pentagram A should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Kit Hinrichs at Pentagram A is less affected by the new emerging competition in the industry.

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