Ooni Management Report.docx - 1 Ooni Management Report...

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1 Ooni Management Report Student’s Name Institutional Affiliation
2 PART 1 Introduction Ooni specializes in making portable pizza ovens that can be used by families for outdoor cooking. The company produced the first portable pellet pizza oven in 2012 and has continued to innovate and launch better pizza ovens that have changed the outdoor cooking experience for many people around the world. The case study states that Ooni pizza ovens “cook incredible pizza in just 60 seconds and heat up to a super-hot 932 degrees Fahrenheit or 500 degrees Celsius.” This is a remarkable improvement from the domestic ovens, which has made the company an award-winning business that continues to grow its market share around the world. The driving force that has been keeping the company moving since its inception is the belief that everyone deserves a great pizza. While it has enjoyed considerable success since its inception in 2012, the company has to take measures to ensure that it continues with the growth trajectory. The current paper provides various strategic recommendations that can help Ooni maintain its market leadership position and also further its dominance of this industry. Recommendations Cost Leadership Strategy The cost leadership strategy involves organizations lowering their costs in order to sell their products and services at lower prices. If an organization adopts a low-cost structure, it will still be able to make profits even if it is selling its products and services at a lower price compared to the competitors (Scheele, 2014). To succeed with this strategy, the company needs to continuously search for innovations that can lead to improved operating efficiencies. For Ooni
3 pizza ovens, the company has to increase its portfolio and also look into the possibility of serving different industry segments. As per Autry (2013), there are many varied sources of a cost advantage which may include preferential access to raw materials, using technology, taking advantage of economies of scale, among other factors. Ooni’s vision is that everyone deserves great pizza. A low-cost leadership strategy aligns with this vision in that it would allow everyone to afford a pizza oven. A low-cost strategy also aligns with the company’s values which include innovation, rigor, and kindness. In its quest to make Ooni a household name, the company has to make its products accessible to a bigger demographic. The case study states that one of Ooni’s strengths is the excellent relationship it has with its suppliers. The company can take advantage of these great relationships to reduce operational costs and then transfer this on to its customers. The future strategic position of Ooni is based on maximizing the profits of the company (Scheele, 2014). A low-cost strategy is an appropriate avenue for the company to increase its profitability as it will allow it to significantly increase its sales.

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