An organization’s longstanding accomplishment is determined by its aptitude to exploit its existing proficiencies while concurrently exploring essentially new competencies in a dynamic environment. Most prosperous organizations are adept at improving their existing offerings, but they are hesitant when it comes to inventing completely new products and services. This requires organizations to advance both configuration and adaptableness skills at the same time. There are several thriving office furniture companies, but the custom furniture manufacturers are few. Great office furniture is significant for a real business at two levels: appearance and comfort.
Several organizations offer office furniture, which will provide competition to Mike and Tiffany’s organization. Nonetheless, stiff competition will emanate from Urban Office and Steelcase. The competition resulting from these firms is important for the organization’s strategic management (Wang 33).
Urban Office is a UK-based furniture and design organization team established in 2005. They provide office furniture that advances itself to office trends, for instance, flexible workspaces. The greatest strength of Urban Office is its niche of custom furniture production with planned market segmentation. The firm also has diverse market segments that enable it to emphasize on several sections with diversified revenue sources. The market segments comprise large businesses, small businesses, and home-based offices. However, the firm’s weakness involves custom manufacturing where the price of the furniture is high hence constricting production and sales volumes. Urban office, however, can explore a new opportunity of enhancing channels of distribution and the option of selling online alongside social media marketing. The main threat that the firm is likely to face is the strong growth in the high-end office furniture industry, which has open doors for many competing organizations to enter the market.
Steelcase has been in the furniture business for close to a century. It is a frontrunner in both furniture manufacturing and research on workplace strategy. Steelcase provides an assortment of office reviews to assist facility managers to identify areas of enhancement in their corporations.
One of the Steelcase’s strengths emanates from its historical growth in sales that has made it have a large capital, which enhances its development. However, technological presence, despite being important in the industry, has become a challenge for the organization hence it is a weakness. The organization has not fully reconnoitered the new online modes of marketing and new channels of distribution. The greatest opportunity for the firm is the niche market that offers chances of classifying a specific niche. Moreover, the organization has the opportunity of enhancing its technology since new business owners, the upcoming middle class and the potential entrepreneurs, who are the potential customers, appreciate new technology and fancy customizations. The firm faces a threat from established bulk-market furniture establishments entering this space in meeting the expense of lower price because of the economies of scale. New marketing approaches help the establishments to grow faster and hit markets globally.
The organizations are direct competitors since they are established in the market and offer same products. Competitive advantage is an exclusive position against an organization’s rivals with efficient use of resources (Shahmansouri 842). The market for custom manufacturing of equipment is a niche market that is continually growing. Being a reputable player in this market helps the organization to grow faster. This is important in forming a cooperative strategy with any of the competitors. Moreover, since the products are custom built, their cost is relatively higher, and this collaboration helps in harmonizing prices. This process supports the organizations’ approach to price the product at a better cost and provides better margins. The main strategies for enhancing a competitive market profile include establishing a launch strategy, designing a brand strategy, developing a marketing campaign, and expanding distribution channels. A Balanced scorecard involves a management system that allows organizations to interpret the vision and strategy into action (Isoraite 18). This system delivers a response to internal business procedures and external results to advance organizational performance and results.
Works Cited
Isoraite, M. (2008). The balanced scorecard method: From theory to practice. Intellectual Economy, (1).
Shahmansouri, Samira, Mohammadreza Dalvi Esfahan, and Navid Niki. “Explain the Theory of Competitive Advantage and Comparison with Industries based on Advanced Technology.” International Journal of Economy, Management and Social Sciences 2 (2013): 841-848.
Wang, Hui-Ling. “Theories for competitive advantage.” (2014): 33.