Beauty Products
TYPES OF Strategies
There are different types of strategies that can be applied to the organization, depending on the plans that the managers want to start pursuing.
Firstly, we're going to explain the strategies Schezza is going to pursue.
1. backward integration
In order to reduce uncertainty, we plan to implement a backward integration to increase control (gain the ownership) of our suppliers.
2. related diversification
With the intention of expanding our range of products and giving our customers new experiences in beauty products, we plan to add a new product, a splash. A new experience in freshness for the beautiful women of today.
3. product development
As any other company in the industry, we always are seeking to be competitive and offer only the best to our customers. In favor of this, we need to keep up the trends of our customers and the general public, and because of this, hand to hand with our R&D area, we will be innovating and improving our products for being an organization adaptable to change.
4. market penetration
In Schezza Colombia, we are always seeking for new horizons for our organization. With this strategy we will look for expand our percentage of the market of cosmetic products in Bogota, and this only will be possible by investing more in marketing and keeping the high quality of our products .
Is important for Schezza to implement this strategies in this point in growth, nevertheless, is also important to take into account other strategies that can be necessary in the future; those are the following
1. forward integration
is a good strategy for every organization that have suppliers, to gain ownership or increased control over distributors, to ensure lower costs in the future. is not at all necessary to schezza to start pursuing a forward integration because in this point we are our own retailers.
2. horizontal integration
Horizontal Integration is useful for companies to seek ownership or increased control over competitors: new mergers, acquisitions, and enhaced transfer of resources and competencies.
In this point, Schezza is not a company that has the enough capital to buy emerging organizations, that's the reason why we didn't include it in our strtaegies.
3. Unrelated Diversification
Unrelated diversification, is used by companies that want to enter to new industries, launching products unrelated with their original ones, just as the case of Bonice, launching popetas.
in scezza, we're not interested in implementing this strategy, the reason? because we want to keep the line of products that transmit freshness, we want to keep schezza's originality.
4. Retrenchment
Retrenchment happens when a company has been having economical problems, either for problems with sales, or a bad financial management. this strategy consists in regrouping through cost and assets reduction to reversew declining sales and profit.
schezza is an emerging organization, so of course it isn't earning money in this moment, nevertheless, retrenchment is only used when a company has been operating for a long time, and they have been losing profitability .
5. divestiture
divestiture is the next scenario after retrenchment. It happens when a company has to sale a division or part of their organization. it's also used by big organizations when they want to focus on their core businesses.
in schezza we don't need to implemnt this strategy because we're already focused ready focused in our core businesses that are eyeshadows and lipsticks. likewise, we don't need to sale part of our business yet.
6. liquidation
HAPpens when the organization tried already with the first and second scenario, but id didn't work: the owners of the company have to sale their business to cease operating, this way, they aren't going to continue losing large sums of money.