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Cabela’s Strategic Choice And Evaluation
In this paper, it provides a discussion of strategic choice implemented for the growth of Cabela’s Inc. Cabela’s is a retailer of the fishing, hunting, camping, shooting, and other outdoor recreation merchandise (Schmeyer, 2015). Upon completing an internal and external environmental analysis, Cabela’s must carefully evaluate its perspectives and determine the best applicable value discipline, grand strategy, and generic strategic. Value discipline will endow the company with specific content for the corporate objectives and general vision and affect its most valuable client niches and arrange its functional subdivisions.
Today, Cabela’s must develop and implement a victorious strategy aimed at fueling its growth and differentiation. The idea of value discipline strategy is that a company cannot be successful if it aims at being everything for everybody. Instead, a firm must select the unique value that can be offered by only the company in a particular market. Selecting a value discipline is a central act that tends to shape subsequent decisions and plans that a company makes. The choice of a value discipline tends to define what a firm does; thus, what it is (Johnson, 2010).
So as Cabela’s can keep up with the times, it must introduce the product leadership strategy. People consider the product leadership strategy as innovative because all companies guided by this strategy of product excellence tend to focus on the regular and rapid introduction of new products (Badenhorst-Weiss et al. 2008). Therefore, being industry leaders, they present several new products in the market and force competitors to chase after them. With product excellence, Cabela’s has the potential of delivery products to customers at the best price and caring for the inconveniences that may occur during product delivery.
Currently, technology tends to take place in almost all company and as a result, it is changing the way organizations are operating. Therefore, it will be necessary for Cabela’s also to move into this technological direction. When Cabela’s introduces technology in its operations, it will help in improving customer services.
The generic strategy comprises of two things that include deciding on the potential of the business and deciding how to get it there. The generic strategic is the core idea regarding how the company can best compete in the marketplace and also seek competitive advantage (Badenhorst-Weiss et al. 2008). These strategies are useful because they usually characterize the strategic positions with the industry or market. There are three generic strategies considered as alternatives to help companies in different ways. They include cost leadership, differentiation, and focus (Badenhorst-Weiss et al. 2008). A low-cost leader in the market normally gains competitive advantage from being able to produce at the lowest cost. The strategy tends to shave the cost of every element in the value chain. Differentiation normally focuses on satisfying the desires of customers through sustainable competitive advantage (Badenhorst-Weiss et al. 2008). The focus strategy enables the company to focus on ways that will help provide exceptional services.
The product differentiation strategy is a generic strategy that will align with the goal of sustained growth. Clients tend to be very selective when selecting the products that they want; thus, producers must modify their products. The growing demands of products tend to be creating a high level of opportunity for producers who can successfully target the niche market. Therefore, Cabela’s can use product differentiation strategy to help make their products stand out among other brands. The differentiation strategy will strive to create and market unique products for different market groups.
Grand strategies refer to the basis of sustained and coordinated efforts directed towards achieving the long-term business objective. Cabela’s should focus attention on adapting strategies that are beneficial to the organizations (Boone & Kurtz, 2008). The strategies that the company uses are those that are dependent so as to develop an environment more appealing to clients who want to get outdoor products from the company. In the case of Cabela’s, focusing on the low-cost strategy is not important at the time because it tend to be a waste to the company. A company that focuses on such a strategy is one that is in the industry not to make a profit; thus, it is essential for Cabela’s to consider a strategy that will help in its growth.
The most appropriate grand strategies for Cabela’s include concentrated growth and product development. The concentrated growth emphasizes on growth through focusing on increasing the sales of current products using the current distribution channels (Badenhorst-Weiss et al. 2008). The company should focus on the continuous introduction of new, store-branded merchandise to its stores as this will help to grow the sales of products. As the demanding is growing, the company can consider using this strategy to increase the rate of use of products by the current customers and also attracting competitor’s customers. When using the concentrated growth strategy, Cabela’s will mix its outdoorsman-oriented merchandise with an aquarium, realistic nature scenes, and indoor waterfall stocked with trout.
As a result, it will be possible for Cabela’s to secure a customer base that its competitors have been ignoring. Another strategy that the company should consider is product development. The strategy involves substantial modification of the existing products or the creation of new products but relates to the ones marketed to the current customers (Robinson & Pierce 2004). Cabela’s should focus its attention in the search for new and innovative products or even through modifying the existing products so as to be able to meet the changing needs of customers.
For some time, Cabela’s have been experiencing a fall in its sales. So that the company can run effectively, there is a combination of strategies that the organization can use. The recommended strategies will help to turn around the declining sales and ensure the growth of the company (Robinson & Pierce 2004). The recommended strategies for Cabela’s to consider are differentiation and product leadership strategies Cabela’s should also use the grand strategy of product development and concentrated growth as the strategic plan to implement. Concentration growth and product development with enable the company to broaden its operations and be able to provide customers with products that they expect in the market based on the changing needs. It is essential for Cabela’s to make sure that it implements the strategies as this will ensure that the company retains and attract customers by providing them with the best products and services. When implementing these strategies, Cabela’s will be able to reach a position where it can secure its market share.
Cabela’s should make an effort in differentiation and product leadership strategies so as to increase market share in the industry. If the company manages to achieve this objective, it will produce long-term brand loyalty for its products that shows a promising trend of growth. Product development tends to be a promising strategy for the company and its combination with concentration growth; Cabela’s will be able to establish a larger brand that encompasses a larger geographic region. When using the product development strategy, the company will be targeting its products to a specific customer with the goal of creating brand loyalty in certain divisions in the company (Badenhorst-Weiss et al. 2008). Similarly, the adoption of product excellence as a value discipline will allow the company to introduce more products in the market; thus, providing Cabela’s with a competitive advantage that will see competitors chasing after them. With the product excellence, Cabela’s will be able to set prices that are very competitive with other firms while it also remains highly profitable. Cabela’s is a very mature organization, and it is upon it to consider using strategic elements that will help it improve its growth and maintain a competitive edge. The results from these recommendations will see Cabela’s improve its growth and gain back its market share.
Company to buy
The company that Cabela’s should buy is Royal Robbins Inc, which is a company that designs and markets sportswear and travel apparel for women and men. If Cabela’s consider buying the company, it will cost it approximately $7 million; however, it will help the company increase its sales by approximately 25% to 35% annually. When buying the company, it will enable the company to enhance its profitability and also provide a significant new growth element. The move will provide Cabela’s with the ability to offer innovative styling and a broad choice of apparel at an excellent price.
Boone, L & Kurtz, D (2008). Contemporary business, Cengage Learning
Johnson, R. (2010).Three Value Disciplines - Which One Defines Your Company?
Robinson, R. & Pierce, J. (2004). Strategic Management, New York: McGraw-Hill
Schmeyer, E (2015). Cabela’s expected to open the Summerville location in 2016.
Sherry Roberts is the author of this paper. A senior editor at Melda Research in 24 hour college papers services. If you need a similar paper you can place your order for a custom research paper from custom nursing essay services.
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