Case study Vera Bradley turnaround strategies reverse in 2015
Vera Bradley is an example of a strong turnaround strategy that the company is undertaking to ensure that it obtains its initial place in a market setting. Vera Bradley, a high quality ladies handbags and accessories, has the mission of providing the best quality handbags and accessories as well as being the best company with the largest market share in the market. In order to archive this mission, the company needs to be employ turnaround strategy in order to come into realization of the company profitability. The profitability of the company is drastically dropping at the high rate during the last one year; this is due to the current market situation and demand as well as high competition although the company had tried to employ different strategies to maintain its status quo.
The company fulfills the mission by outsourcing its products and providing multiples outlets through retail and whole sale services. The company can apply so many strategic entries to the market but the fact remains that the customer response is what really matters. A good example of quality and consumer taste and preference scenario is a situation where the customer buy a product and finds it useful hence giving the service he or she requires, the customer will come back for the same type of product made from the same company to maintain customer loyalty to the product. From the porter’s 5 forces analysis, competition is one of the factors that integrate firms in any market setting. The industry consists of many players who are providing identical products which are only differentiated by color and brand, barriers to entry to the market are low hence product differentiation is low.
The competitors in the industry must however introduce more advanced and technical advertising and marketing skills in order to maintain a place in the market, they must each have no option but to simply integrate their products through maintaining customer loyalty and retention. The impact of cost will more specifically become another potential factor which the company must have adhered to. This also makes the bargaining power of suppliers very strong in the industry and also the industry attractiveness. The new entrants into the market are increasing due to the open entry and exit policy in the industry, since this industry is capable of dictating the prices of the product, quality is not an option to be compared because of the different products design which the firms produce.
An increase in technological advancement has led to a more complex market whereby everyone is improving its products in his own way. Grabbing this opportunities which have been opened by this advancement would be the best policy for the company more so due to its advanced technique of dealing with the product. The industry is very competitive because of the high number of new entrants into the market and the homogeneity of the products in the market. In order for a company to overcome competition, they should improve quality and design of the products to distinguish its products from those of others in the market. The market is currently under the control of big firms which are a threat to the small firms; Vera Bradley should consider addressing the management issue instead of addressing the external factors which are less associated with the company itself.
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