Case study Vera Bradley turnaround strategies reverse in 2015

Document Type:Case Study

Subject Area:Business

Document 1

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. Strategic issue Vera Bradley is currently facing a tough financial crisis, the company’s stock is moving so fast that the current plan must be executed and the companies marketing strategies revived. Product strategy is a very critical issue when it comes to meeting the long term goals of the company; Vera Bradley in this case did not yet implemented its product strategy. Improving the product assortment by focusing on its core design will not only attract more customers but will address the question of pricing strategy the rate at which the competitors are retailing their products, pricing matters a lot among the internal factors of the company.

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Unlike other employees in other companies, Bradley workforce should maintain its small scale range of employees to cut cost and also recover from the tough financial crisis that the company is currently facing without must hesitation. Employees who identify with the organization will most probably adopt suggested workplace behaviors and in the process be motivated to promote the company’s product. 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.

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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.

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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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The market is no longer attractive to new entrants because lack of policies that will protect the new entrants from the exploitations caused by the big firms. Monopolistic competitions will most likely invade the market if small firms interests are not taken into consideration and measures addressed. Porter, M. E. Millar, V. E. How information gives you competitive advantage. Routledge. Miller, A. Dess, G. G. Assessing Porter's (1980) model in terms of its generalizability, accuracy and simplicity.

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