Assessment 4 Instructions: Grand Strategy Matrix Caroline Hill Capella University Assessment 4: Grand Strategy Matrix
Assessment 4 Instructions: Grand Strategy Matrix Introduction Since 2020 Luxury Fit has grown to become an industry leader for fitness wear for everyone. The new sales pitch is shapewear and fitness for all body shapes. Luxury Fit's active wear is the best seller and contributes to their success as a new company. Their vision is to be the leading online retailer on luxury shapewear and healthy products. Is your chosen organization in a weak or strong competitive position? When comparing Luxury Fit to their competitors such as Flat Tummy Tea and SKIMS they will start to dominate in the future because they provide more products with a variety. Luxury Fit is the combination of SKIMS and Flat Tummy Tea. Even though Luxury Fit doesn't have profits like these two companies they can be in the conversations. Luxury Fit focuses on style and customer service to have loyal customers for the brand thus increasing their competitive advantage. Is the market growth rapid or slow? The fitness market is a fast-growing market. Global fitness market represents a consolidated competition landscape, where, for most key players, their strategic focus is on product development, frequent product launches, and mergers and acquisitions. In 2018, through a series of acquisitions, Under Armor spent more than 700 million on connected-fitness companies such as MapMyFitness and Endomondo to strengthen its brand portfolio. According to the PMR report, the body shaper market is projected to register a CAGR of 7% during the forecast period 2020-2028. The region that has the largest market share for the most bought body shapers is Europe, followed by North America. In addition, product launches through celebrities and commercials also have been important drivers for luxury fitness wear. The region that has the third largest market share is the South Asia and the Pacific due to its large customer base.
Assessment 4 Instructions: Grand Strategy Matrix Luxury Fit is a fresh and newer brand that can compete with shapewear brands like SKIMS, but also tea products like Flat Tummy Tea. Grand Strategy Matrix Rapid Market Growth Quadrant 2 Market development Product development Market penetration Liquidation Horizontal integration Divestiture Weak competitive position Quadrant 1 Product development. Market penetration. Market development. Related diversification. Integration Strong competitive position Quadrant 3 Liquidation Related diversification Horizontal diversification Horizontal integration Divestiture Unrelated diversification Quadrant 4 Strategic alliances Merger Joint ventures Related diversification Acquisition Unrelated diversification Slow Market Growth Summary Quadrant I consist of products that are strong in competition and have a rapid growth in the market. These products include the active wear and clothing that Luxury Fit sells. To grow and consolidate their market position they should expand their clothing on a global scale. They can do this by adding more items such as winter fitness items. This strategy has been applied by their
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