This case study is regarding development of a strategy for Sandby Smeden. Sandby Smeden is an almost 102 year old company that sells smaller machinery to part time farmers and also all small machinery for gardening to consumers. The company also repairs machines and have a grand shop and warehouse area of 7.000 square meters under roof. The external environment has been analyzed through a PEST, Porter’s Five Forces and Strategic Canvas. Here it was concluded that the key drivers of change in the PEST analysis are political and economic factors, specifically changes in the environmental laws and the future economic state of the customers. The market Sandby Smeden is in is a lucrative market with low threat of entry due to high entrance barriers, low threat of substitutes, the power of buyers and suppliers are low to moderate depending on if it is a long time buyer or supplier. Sandby Smeden’s position is good due to its ability to differentiate and its long existents. The Strategic Canvas analysis revealed the customer’s satisfaction with the company and it showed the customers have lower price sensitivity. The internal environment has been analyzed through a view of resources and competences, VRIN, and SWOT. Sandby Smeden’s greatest resources are its grand shop and warehouse area, its relations to its customers and its brand. The core competences are its guidance of its products and its customer care. The VRIN model was used to rate these resources and competences. The SWOT was used to make an overview of all the analysis. Using the conclusions of the external and internal environment analysis a competitive strategy was found by the use of Porter’s generic strategies and Bowman’s Strategy Clock. Sandby Smeden’s competitive strategy for the next years should be hybrid strategies due to the differentiation of the Sandby Smeden and to the customer’s future economic situation. Using the conclusions of the external and internal environmental analysis a strategy direction was found using Ansoff’s growth matrix. The strategic direction of Sandby Smeden was concluded to market development with the still use of market penetration due to the customer’s future economic situation.
|Educations||Graduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis|
|Number of pages||128|