Good Pinnacle Textile Limited Case Study Example
This case of Pinnacle Textile Limited gathers information of the possible strategies the Company may undertake while entering new markets. An all-round analysis of the provided alternatives in the case is to be performed before recommending the most suitable approach.
The overall evaluation of the case gives the following key findings that need to be considered while taking any decisions on the expansion and the techniques to be used:
The Company has been established over a long time now signifying that the growth has saturated in the areas where it has been operating, and expansion exists, as a current time need.
Now that the Company has tried and tested traditional methods of selling and marketing in the areas where it operated previously. It may as well experiment with newer methods in order to tap larger market share and identify other market opportunities that are not possible through traditional methods.
The use of technology or any other strategy used by competitors in the existing, as well as expansion areas, should be well considered.
The quality of the raw materials used for the production of textile is in standard with the quality of competitors.
Distributors play a significant role in the whole business structure of the Company. The role has had some favorable as well as some unfavorable resultant situations for the Company.
The CEO of the Company plays has not been playing an active role in the marketing and sales activities of the Company. The distributors are the ones who control significant rights and responsibilities of big and mostly smaller clients.
Analysis: The analysis has been based on the findings and the loopholes that have been identified in the case. The following are the major components of the analysis:
Suppliers are gifted with the ability and knowledge for the identification of top players in the market and they know exactly what makes a brand sell. Thus, they play a vital role in any business (Pcimag.com). However, there should be a demarcation as to what extent can the distributors take decisions regarding the product or service mix in the business. Such is the need for this Company as well.
The CEO needs to take a pivotal role in getting involved in marketing and promotional activities of the Company in the existing, as well as newer places.
Integrating technology is the current marketing need in most business. It not only helps in cutting down costs in the long run, but also helps amplify the productivity and sales volume of the business. Information technology has also become one of the most important promotional tools for many competitive businesses.
The core competency of competitor businesses in the new areas should be well assessed. If the technology can give us the higher advantage then, it should be the new implementation strategy, and if distributor channel management provides greater benefits, then the management should be paid the higher focus.
Alternatives and Conclusions:
The case provides us with two clear alternatives, among which one is to be implemented:
Using automated features of tracking and ordering as suggested by one consultant
Bypassing the existing distributors for reaching bigger clients.
The first option provides advantage of having an extensive reach over customers, which includes a direct connection with current and newer small clients as well as more prominent clients who may be attracted by online advertisements and sound schemes. The problem with this alternative is that it may be costly to the business with an initial investment of three thousand dollars. The ease lies in the fact that since we are planning for expansion and there are many areas that need divided attention. Having automated systems will help in managing the business in new areas without diverting much attention from the existing areas of operation. The issue of warehouse, as mentioned by CEO, can also be well handled.
The implementation of the automated system will be as described in the case.
A simpler web-based system for ordering is to be set up for smaller clients who are not much computer friendly. This action will increase the simplicity in the user interface.
Tie up with search engines like Google, Yahoo to reach the potential young clients who are more into computers and E-commerce. This action will help to increase traffic flow to the page.
A customized online marketing program can be created with an amount of $30,000.
For more computer friendly customers, sophisticated website could be built that link customers in the direction of suitable customers.
The data collected from the automated system may be used to tap business opportunities with bigger and smaller clients.
Thus, Pinnacle should develop distributor policies and procedures so as to amplify their role in the Company value chain by selecting appropriate size and nature of distribution channel (Fiorletta, Alicia). It should install the automated systems if it wants to achieve maximum benefits from its plans for expansion.
Fiorletta, Alicia. 'Distributors Playing A More Pivotal Role In Channel Operations'. Channel Marketer Report. N.p., 2012. Web. 27 Jan. 2015.
Pcimag.com, 'Distributors Play A Critical Role In The Supply Chain'. N.p., 2008. Web. 27 Jan. 2015.
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