Edward Marshal Boehm, Inc is faced with diverse challenges based on the analysis that was modeled by Michael Porter (1980). This segment of the paper offers information on challenges and possible solutions that the firm ought to implement so as to remain in the market and attain its long term operational and strategic goals. The organization will face competition due to the threat of entry of other firms in the industry that could result in new capacity and place pressure on prices, costs, and the rate of investment necessary to compete (Porter 90). The threat for new competition would therefore result in reduction of the firm’s profits and this means that Edward Marshall Boehm Inc diversifies its operations and opens stores in different markets so as to widen its market share.
There could be threats of introduction of substitute art products from the new entrants and this could also limit the organization’s profitability and growth. In order to mitigate this threat the firm should intensify its marketing and sales promotions strategies so as to capture client loyalty (Jason et al 5). The bargaining power of the buyers also determines the profitability of the organization especially if they demand better quality since there are few customers who purchase expensive pieces of art. This has to be tackled through reducing fixed operational costs so as to provide discounts to clients and create brand image so as to increase its sales and profits in the long run. The suppliers also ought to be considered in operations so that good links can be established with them and reduce the intensity of competition.
Appropriate strategic management by Edward Marshal Boehm, Inc will be attained if it both primary and support value chain activities are integrated in its operations. For instance, for the firm to attain its operational goals it will have to streamline its inbound logistics, operations, marketing/sales as well as excellent service delivery (Antoniou, Levitt & Schreihans, 8). This has to be done through consulting for professionals with expertise in these fields so as to achieve the firm’s stated objectives. Developing online shopping tools, employing more personnel and using highly competitive procurement and distribution stratagems will help it attain its business goals.
Works Cited
Antoniou, Peter, Levitt, Catherine and Schreihans, Cynthia. Managing Value Chain Strategy. Journal of Management & Marketing Research. Dec2011, Vol. 9, p1-11
Porter, Michael. THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY. Harvard Business Review. Jan2008, Vol. 86 Issue 1, p78-93
Jason, George, et al. A VALIDITY STUDY OF PORTER'S INDUSTRY ANALYSIS. Allied Academies International Conference: Proceedings of the Academy of Strategic Management (ASM). Apr2012, Vol. 11 Issue 1, …