Bautista Strama Activity Case

Name: Bautista Yloisa Jazelrein L.
Activity
3BAF6B
Case Study: Leveraging Core Competencies for Competitive Advantage
Case Study: Leveraging Core Competencies for Competitive Advantage
Scenario:
ABC Manufacturing Company is a local firm that specializes in producing custom-made

furniture for commercial and residential clients. Over the years, ABC has built a reputation
for high-quality craftsmanship and innovative designs, which has helped them establish a
loyal customer base in the region.
As competition in the furniture industry intensifies, ABC's management team is faced with
the challenge of sustaining their competitive advantage and achieving above-average
returns. They recognize the importance of leveraging their core competencies to drive
strategic decision-making.
Options for Student Discussion Activity:
Option 1: Expanding Product Lines
ABC's management team is considering expanding their product lines to include eco-
friendly furniture made from sustainable materials. They believe that this initiative aligns
with their core competency of innovative design and will appeal to environmentally
conscious customers. Students can discuss the potential benefits and risks of this
strategy, considering factors such as market demand, production capabilities, and
competitive positioning.
Option 2: Investing in Technology
Another option on the table is investing in advanced technology and automation to

streamline the production process and improve efficiency. This would allow ABC to reduce
costs, enhance product quality, and increase output capacity. Students can analyze the
impact of technology investment on ABC's core competencies, workforce requirements,
and long-term competitiveness.
Option 3: Forming Strategic Partnerships
ABC is exploring strategic partnerships with interior design firms and architecture studios
to gain access to new customer segments and distribution channels. By leveraging their
reputation for quality and design expertise, ABC aims to enhance brand visibility and
capture additional market share. Students can evaluate the potential benefits and
challenges of forming partnerships, including issues related to brand alignment,
collaboration dynamics, and risk-sharing.
Option 4: Geographic Expansion
As part of their growth strategy, ABC is considering expanding into neighboring regions and
cities where demand for custom furniture is growing. This would require investment in
logistics, marketing, and distribution networks to effectively penetrate new markets.
Students can assess the feasibility of geographic expansion, taking into account factors
such as market research, competitive landscape, regulatory environment, and resource
allocation.
Discussion Questions:
1. Which option do you think aligns best with ABC's core competencies and strategic
objectives?
2. What are the potential risks and challenges associated with each option?
3. How can ABC leverage its existing resources and capabilities to mitigate risks and
maximize opportunities?
4. What additional information would you need to make an informed recommendation to

ABC's management team?
5. How might external factors such as industry trends, economic conditions, and
regulatory changes influence ABC's strategic decision-making process?
Answer
1. Which option do you think aligns best with ABC's core competencies and strategic
objectives?
Alignment with Core Competencies: This option leverages ABC's reputation for
innovative design and high-quality craftsmanship by introducing eco-friendly furniture,
which aligns with growing market trends and customer preferences.
Strategic Objectives: Aligns well with ABC’s goal to appeal to a niche market segment,
potentially leading to higher margins and customer loyalty.

Alignment with Corey Competencies: Enhances production capabilities and maintains
high-quality standards through automation, reflecting ABC's commitment to excellence in
craftsmanship.
Strategic Objectives: Supports long-term efficiency and cost reduction, crucial for
sustaining competitive advantage in a cost-competitive industry.
Alignment with Core Competencies: Utilizes ABC’s design expertise and quality
reputation to establish partnerships, which can open new distribution channels and
customer segments.
Strategic Objectives: Expands market reach and brand visibility without significant capital
investment, leveraging existing strengths to capture new markets.
Alignment with Core Competencies: Extends the reach of ABC's craftsmanship and
design reputation to new markets, tapping into growing demand for custom furniture.
Strategic Objectives: Drives growth through market expansion, increasing sales and
market presence.
2. What are the potential risks and challenges associated with each option?
Risks: Market acceptance of eco-friendly products, increased production costs, potential

supply chain issues with sustainable materials.
Challenges: Maintaining product quality with new materials, marketing effectively to new
customer segments.
Risks: High upfront costs, potential technological obsolescence, training and integrating
the workforce with new systems.
Challenges: Balancing automation with craftsmanship, ensuring consistent product

quality during the transition period.

Risks: Misalignment of brand values, dependency on partners for market access, potential
conflicts in collaboration.
Challenges: Managing partnership dynamics, ensuring mutual benefit, maintaining control

over brand image and quality.
Risks: High investment in logistics and marketing, unfamiliarity with new markets,
regulatory hurdles.
Challenges: Conducting thorough market research, building distribution networks, scaling

operations while maintaining quality.
3. How can ABC leverage its existing resources and capabilities to mitigate risks and
maximize opportunities?
Expanding Product Lines: Utilize existing design and production expertise to ensure eco-
friendly furniture meets high standards. Conduct market research to understand customer
preferences and adjust marketing strategies accordingly.
Investing in Technology: Gradually implement technology to minimize disruptions. Train

staff comprehensively to integrate new systems smoothly and maintain quality.
Forming Strategic Partnerships: Choose partners with aligned values and complementary
strengths. Establish clear agreements and communication channels to manage
expectations and collaboration effectively.
Geographic Expansion: Use ABC’s established reputation to enter new markets. Invest in
targeted marketing campaigns and build local partnerships to ease market entry.
4. What additional information would you need to make an informed recommendation to

ABC's management team?
Market Research: Data on consumer preferences for eco-friendly furniture, demand in

potential new geographic markets.
Cost Analysis: Detailed costs of technology investment, production of sustainable

materials, and geographic expansion logistics.
Competitive Landscape: Information on competitors' strategies and market positioning.

Regulatory Environment: Legal and regulatory requirements for new products and
markets.
Partnership Opportunities: Potential partners’ capabilities, market reach, and alignment

with ABC’s values.
5. How might external factors such as industry trends, economic conditions, and
regulatory changes influence ABC's strategic decision-making process?
Industry Trends: Growing demand for sustainable and eco-friendly products can drive the
decision to expand product lines. Technological advancements could make investing in
automation more appealing.
Economic Conditions: Economic downturns might make large investments risky, while
economic growth could support expansion efforts.
Regulatory Change: New environmental regulations might favor eco-friendly product

lines, while changes in trade policies could impact geographic expansion.

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Name: Bautista Yloisa Jazelrein L.

Case Study: Leveraging Core Competencies for Competitive Advantage

Case Study: Leveraging Core Competencies for Competitive Advantage

ABC Manufacturing Company is a local firm that specializes in producing custom-made

Options for Student Discussion Activity:

Option 1: Expanding Product Lines

Option 2: Investing in Technology

Another option on the table is investing in advanced technology and automation to

Option 3: Forming Strategic Partnerships

Option 4: Geographic Expansion

4. What additional information would you need to make an informed recommendation to

Option 1: Expanding Product Lines

Option 2: Investing in Technology

Option 3: Forming Strategic Partnerships

Option 4: Geographic Expansion

Option 1: Expanding Product Lines

Risks: Market acceptance of eco-friendly products, increased production costs, potential

Option 2: Investing in Technology

Challenges: Balancing automation with craftsmanship, ensuring consistent product

Option 3: Forming Strategic Partnerships

Challenges: Managing partnership dynamics, ensuring mutual benefit, maintaining control

Option 4: Geographic Expansion

Challenges: Conducting thorough market research, building distribution networks, scaling

Investing in Technology: Gradually implement technology to minimize disruptions. Train

4. What additional information would you need to make an informed recommendation to

Market Research: Data on consumer preferences for eco-friendly furniture, demand in

Cost Analysis: Detailed costs of technology investment, production of sustainable

Competitive Landscape: Information on competitors' strategies and market positioning.

Partnership Opportunities: Potential partners’ capabilities, market reach, and alignment

Regulatory Change: New environmental regulations might favor eco-friendly product

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