5. Generation, Evaluation and Selection of Strategies
5.1.1 EFE Matrix: The EFE Matrix allows to summarize and evaluate the different variables from the external environment affecting refresh breeze express spa. The highest possible total weighted score is 4.0, which indicate that that the organization is responding in an outstanding way to existing opportunities and threats and the lowest possible total weighted score is 1.0, which indicates that the firm’s strategies are not capitalizing on opportunities or avoiding external threats. The most weighted items are more important to the company as opportunities or that affects more as threat.
Opportunities Bibliography:
2. http://www.semana.com/vida-moderna/articulo/como-va-colombia-uso-tic/238378-
3. http://www.worldbank.org/en/publication/global-economic-prospects/data?variable=NYGDPMKTPKDZ®ion=LAC
4. http://datos.bancomundial.org/pais/colombia
5. http://www.dane.gov.co/files/investigaciones/eccultulral/InfoResultECC.pdf
6. http://www.caracol.com.co/noticias/actualidad/la-mujer-en--colombia-en-cifras/20120912/nota/1760455.aspx
8. http://www.elespectador.com/noticias/salud/estres-afecta-al-38-de-los-trabajadores-colombia-articulo-373408
9. http://www.mintic.gov.co/portal/604/w3-article-2713.html
2. http://www.semana.com/vida-moderna/articulo/como-va-colombia-uso-tic/238378-
3. http://www.worldbank.org/en/publication/global-economic-prospects/data?variable=NYGDPMKTPKDZ®ion=LAC
4. http://datos.bancomundial.org/pais/colombia
5. http://www.dane.gov.co/files/investigaciones/eccultulral/InfoResultECC.pdf
6. http://www.caracol.com.co/noticias/actualidad/la-mujer-en--colombia-en-cifras/20120912/nota/1760455.aspx
8. http://www.elespectador.com/noticias/salud/estres-afecta-al-38-de-los-trabajadores-colombia-articulo-373408
9. http://www.mintic.gov.co/portal/604/w3-article-2713.html
5.1.2 CPM Matrix: The competitive profile matrix CPM compares the organization with direct competitors in terms of critical success factors in the industry, particularly with strengths and weaknesses. It also assures whether the company is doing well compared with the competitors in the same industry.
5.1.3 IFE Matrix: The IFE weaknesses and strengths were decided from the survey done to our potential customers and from the value we believe we can offer to our customers and can possible give us competitive advantage.
The strength that has more weight is the possibility to go to our customers . Being able to take the service to them, wherever they want us to deliver the service with in Bogota. And the weakness that weights the most is the spacial disposal dependency, we don't know where are we going to deliver the service, the space disposal depends on the customer and its unknown.
5.2 Matching Stage:
5.2.1 SWOT Matrix: The Strenghts-Weaknessess-Opportunities-Threats Matrix is an important matching tool that allows managers to develop strategies such as Strengths - Opportunities strategies (SO), Weaknesses-opportunities strategies (WO), Strengths-Threats strategies (ST) and Weaknesses-Threats strategies (WT).
swot_matrix_for_refreshing_breeze_express_spa.pdf | |
File Size: | 76 kb |
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Opportunities Bibliography:
2. http://www.semana.com/vida-moderna/articulo/como-va-colombia-uso-tic/238378-
3. http://www.worldbank.org/en/publication/global-economic-prospects/data?variable=NYGDPMKTPKDZ®ion=LAC
4. http://datos.bancomundial.org/pais/colombia
5. http://www.dane.gov.co/files/investigaciones/eccultulral/InfoResultECC.pdf
6. http://www.caracol.com.co/noticias/actualidad/la-mujer-en--colombia-en-cifras/20120912/nota/1760455.aspx
8. http://www.elespectador.com/noticias/salud/estres-afecta-al-38-de-los-trabajadores-colombia-articulo-373408
9. http://www.mintic.gov.co/portal/604/w3-article-2713.html
2. http://www.semana.com/vida-moderna/articulo/como-va-colombia-uso-tic/238378-
3. http://www.worldbank.org/en/publication/global-economic-prospects/data?variable=NYGDPMKTPKDZ®ion=LAC
4. http://datos.bancomundial.org/pais/colombia
5. http://www.dane.gov.co/files/investigaciones/eccultulral/InfoResultECC.pdf
6. http://www.caracol.com.co/noticias/actualidad/la-mujer-en--colombia-en-cifras/20120912/nota/1760455.aspx
8. http://www.elespectador.com/noticias/salud/estres-afecta-al-38-de-los-trabajadores-colombia-articulo-373408
9. http://www.mintic.gov.co/portal/604/w3-article-2713.html
5.2.2 SPACE Matrix:
The strategic position and evaluative action (Space) matrix represents
two internal dimensions, financial position (FT) and competitive position (CO);
the other dimension is external including this stable position (SP), and
industrial position (IP).
Refresh Breeze Spa is a company that has an aggressive strategic profile
as this excellent position to use its internal strengths and make themselves
known. Being in this position it is easy to take advantage of external
opportunities and turn them into a feature for, in addition to meeting and meet
business objectives.
However, not only must consider the internal strengths but also weaknesses internal to and from work is that the weaknesses or flaws that the organization has a strategic level and thus to overcome the weaknesses present the company, and finally the company must avoid perceived threats from outside.
Regarding the strategic position and aggressive profile that is Refresh Breeze Spa and taking into account the strengths and weaknesses that have to be in this position, it is necessary to market penetration, product development and other specifications given the company has.
However, not only must consider the internal strengths but also weaknesses internal to and from work is that the weaknesses or flaws that the organization has a strategic level and thus to overcome the weaknesses present the company, and finally the company must avoid perceived threats from outside.
Regarding the strategic position and aggressive profile that is Refresh Breeze Spa and taking into account the strengths and weaknesses that have to be in this position, it is necessary to market penetration, product development and other specifications given the company has.
5.2.3 BCG Matrix:
The BCG matrix is represented by four quadrants (Stars, Question Marks, Cash Cows, and Dogs) and each of these figures represents a different strategy. Where the vertical axis of the matrix defines the industry sales growth rate, and the horizontal the relative market share position.
5.2.3 BCG Matrix:
The BCG matrix is represented by four quadrants (Stars, Question Marks, Cash Cows, and Dogs) and each of these figures represents a different strategy. Where the vertical axis of the matrix defines the industry sales growth rate, and the horizontal the relative market share position.
5.2.4 IE Matrix: The Internal-External (IE) Matrix its divided in nine cells.
Lighter green: Grow and Build
Strategies to use: Backward, Forward, or horizontal Integration, Market penetration, Market Development, Product Development.
Normal green: Hold and maintain
Strategies to use: Market penetration, Product Development
Dark green: Harvest or Divest
Strategies to use: Retrenchment, Divestiture.
As the IFE and EFE scores fall within cell II the prescription can be described as grow and build, in grow and build intensive or integrative strategies can be the most appropriate. The vertical integration strategies allow a firm to gain control over distributors, suppliers and/or competitors. The intensive strategies require intensive efforts if a firm’s competitive position with existing products is to improve.
As we are a starting company in a small market we must apply this strategies, the General Coordinator will be in charge, the intensive strategies are most appropriate, as we must increase market share for present massages in present market through greater marketing efforts. The cost of this will be approximately 10%-15% of the projected incomes of the first year.
As we are a starting company in a small market we must apply this strategies, the General Coordinator will be in charge, the intensive strategies are most appropriate, as we must increase market share for present massages in present market through greater marketing efforts. The cost of this will be approximately 10%-15% of the projected incomes of the first year.
5.2.5 GRAND Strategy Matrix:
Quadrant I
Quadrant II
Quadrant III
Quadrant IV
http://es.slideshare.net/opaprb/strategy-analysis-and-choice-39079463
- Excellent strategic position
- The concentration in the markets and current products
- Take risks aggressively when necessary
Quadrant II
- Evaluate current approach
- Changing to improve competitiveness
- The rapid growth of the market requires intensive strategy
Quadrant III
- Compete in slow growth industries
- Weak competitive position
- Drastic changes quickly
- Cutting costs and stated assets (reduction)
Quadrant IV
- Strong competitive position
- Slow growth industry
- Diversification suitable for most promising growth areas
http://es.slideshare.net/opaprb/strategy-analysis-and-choice-39079463
As Refreshing Breeze Spa is an industry that is constantly growing and that every day is gaining acceptance by customers, it is necessary to carry out the strategies of the quadrant II for a better positioning in the market because the company currently is in Weak Competitive Position.
First of all it is very important to evaluate the current position that the company has on the market and thus make people aware of the company and the different types of services offered in this, so the company can offer better services compared to those of the competitors. Besides, it is necessary to implement new services in this case, massages making new and innovative changes to customers, either as to the price of each service, hours of operation and other aspects like these.
First of all it is very important to evaluate the current position that the company has on the market and thus make people aware of the company and the different types of services offered in this, so the company can offer better services compared to those of the competitors. Besides, it is necessary to implement new services in this case, massages making new and innovative changes to customers, either as to the price of each service, hours of operation and other aspects like these.
- Market Development: which is the introduction of new services (massages) to the company.
- Market Penetration: which is having a higher market share.
- Product Development: where the goal is to increase sales and improvement of existing services (massages).
5.3 Decision Stage:
5.3.1 QSPM Matrix: The Quantitative Strategic Planning Matrix, this technique objectively indicates which alternative strategies are best.
strategic_alternativesdoc.pdf | |
File Size: | 129 kb |
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1. Forward Integration:
Acquiring 4 more motorcycles (At least one for each employee) and a vehicle to deliver our services.
2. Backward Integration:
Producing our own moisturizers and oils for the massages that will be done.
3. Horizontal Integration:
Making alliances with competition, other massages firms, to seek ownership over competition.
4. Market Penetration:
Seeking increased market share for present massages in present market, Bogota. Increasing online promotions in a 5% for those customers who share through social media their good experience with us, Setting our massages in customers mind as the first option through quality certifications (ISO 9001). Launch price discounts in peak seasons (e.g. valentines)
* 5. Product Development: Highest score: 4.05, most viable strategy to implement:
Seeking increased sales by improving present massages, focusing in what is more frequently requested by the costumer and potential it by increasing the time of the massage and improving the techniques through capacitation of the personnel. Segment our market to specialize in a small range of specific messages instead of having a wide range of massages, Flexibility in massage time range option for the customers, Specialize in a small range of specific messages instead of having a wide range of massages. Enhance employees experience in massage through periodic training sessions, allowing them to recognize what’s their weakness to reinforce it (ST 1 Y WT 2 in SWOT Matrix)
6. Market Development:
Introducing present massages into a new geographic area, Chia Cundinamarca. Invest in advertisement adding promotions to acknowledge our customers during the first year
7. Purchase a store:
Purchase our own store in able to manage our own space disposal and customers can be able to have a pure relaxing environment offering them both options express services and the opportunity for them to come and take the service where we are with the purpose of giving them an external pure relaxing environment, with a price difference
8. Divestiture:
Sell a percentage of our company, not more than 20%, to another related company or interest investor in order to divide costs and reduce them.
9. Liquidation:
Liquidating our employees, letting them know in advance so they can look for another job, after that we will sell all of our assets and capital, in order to recover some money, liquidating the firm completely.
Acquiring 4 more motorcycles (At least one for each employee) and a vehicle to deliver our services.
2. Backward Integration:
Producing our own moisturizers and oils for the massages that will be done.
3. Horizontal Integration:
Making alliances with competition, other massages firms, to seek ownership over competition.
4. Market Penetration:
Seeking increased market share for present massages in present market, Bogota. Increasing online promotions in a 5% for those customers who share through social media their good experience with us, Setting our massages in customers mind as the first option through quality certifications (ISO 9001). Launch price discounts in peak seasons (e.g. valentines)
* 5. Product Development: Highest score: 4.05, most viable strategy to implement:
Seeking increased sales by improving present massages, focusing in what is more frequently requested by the costumer and potential it by increasing the time of the massage and improving the techniques through capacitation of the personnel. Segment our market to specialize in a small range of specific messages instead of having a wide range of massages, Flexibility in massage time range option for the customers, Specialize in a small range of specific messages instead of having a wide range of massages. Enhance employees experience in massage through periodic training sessions, allowing them to recognize what’s their weakness to reinforce it (ST 1 Y WT 2 in SWOT Matrix)
6. Market Development:
Introducing present massages into a new geographic area, Chia Cundinamarca. Invest in advertisement adding promotions to acknowledge our customers during the first year
7. Purchase a store:
Purchase our own store in able to manage our own space disposal and customers can be able to have a pure relaxing environment offering them both options express services and the opportunity for them to come and take the service where we are with the purpose of giving them an external pure relaxing environment, with a price difference
8. Divestiture:
Sell a percentage of our company, not more than 20%, to another related company or interest investor in order to divide costs and reduce them.
9. Liquidation:
Liquidating our employees, letting them know in advance so they can look for another job, after that we will sell all of our assets and capital, in order to recover some money, liquidating the firm completely.