Strategic Management and Joint Venture
Develop Marketing Plan
Houzit is a home ware accessories dealer in Brisbane city which specializes in bathroom, bedroom fittings and decorative items. They have 15 stores in Brisbane and managed by their head office which is located in Milton.
Houzit is planning to increase their sales from $15 million to $20 million annually in next three year time moreover increase the loyalty of customers from 10.000 to 15,000. Houzit also have plans to recognize by at least 1 person out of 3.
They are located in commercial, suburban neighborhood or urban retail district with a size of 1000 to 1500 m2 with 15-20 fulltime and several employees. They …show more content…
Bargaining Power of Buyer
Buyer is always a very crucial element in your business, so both companies should develop their strategy keeping in account the targeted buyer’s priority and requirement. It will leave a positive impact on buyers as two well reputed companies are going to work together.
Bargaining Power of Supplier
This is the most supportive option for any supplier by having a partner in his business as in joint venture profit and loss bear by both parties so if they run their business as per the requirement of the buyer and understand market situation then there is no doubt that they will enhance their business strength and will prove beneficial for suppliers as well. So, it will have a positive impact.
Competitive rivalry is a back to back factor which always runs with your business, All competitors in your business always come up with different ideas and packages for their customers, they will also start seeking such opportunities so that they can compete with us. So to deal with this situation both companies should be capable enough to successfully implement their ideas and compete with other people in the market.
Level of advertising expense Threat of Entry: The threat of new entrants is a function of both barriers