Good news is that, with their existing resources and their capabilities they can find ways to reduce their production cost by maintaining their product quality It is just an issue for the company to transform that into cost advantage. For example, they could improve technology to cut the cost They could also concentrate more on automation as this would reduce their production cost considerably. Firm perhaps has a market penetration emphasis i.e. it is selling whole kitchen solutions to existing customers. It is filling the gaps in their kitchen needs, making every appliance.
Due to stagnant sales, there are signs the firm is beginning to exploit its current skills by expanding internationally to premium customers, similar to the company’s base, in markets like the U.S Diversification is too risky for this conservative firm that does not want to be a mass market player. Miele’s marketing objectives could focus on market penetration to some extent, increasing its ‘share’ of the premium market; but must also emphasize product development and market development.
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- Fall '19