Strategy Essay Example | Topics and Well Written Essays - 500 words - 4

Strategy - Essay Example The supplier caters almost 35% of the requirements of the company that is huge and might put the company in jeopardy (Thompson, 2012). In the given circumstances, the company needs to take into account the adverse economic environment and formulate a successful corporate strategy to cope with the business complexities (Johnson et al 2011). Haberberg and Rieple (2008) demonstrate that a well-planned corporate strategy provides means to renew competitive advantage in line with the changing environment. Accordingly, it will be most appropriate to delve deeper into the existing toy market scenario. Italy, France, Germany, Spain and the UK constitute almost 73% of the total European toy market. Most of the supply of the toys in the Europe comes from China. The infant and preschool toy segments constitute almost 20 percent of the market – a largest segment in the total toy sales. Toy shops in the five major countries of Europe sell almost 40% of the total sales in toys (The Toy Sector in Europe, 2010). Furrer (2011) argues that the ultimate purpose of any corporate strategy is the value creation. In order to sail through difficult times, the company needs to adopt positioning strategy to earn higher revenues by using scarce and limited resources at its disposal (Besanko, 2010). Accordingly, the company will be benefitted by positioning to the fastest growing infant/preschool segment of toys and expand by capturing the imagination of this class of children. Porter (1985) argues that it is important to differentiate the product from its competitors so that it is valued by buyers and the uniqueness in the product is eventually rewarded through a higher price. Moreover, innovation is must to make product distinct and unique Grant, 2010). In order to ensure uninterrupted supply, suppliers’ evaluation and selection process needs to be done most meticulously (Sollish & Semanik, 2011) and therefore an effective and flaw-less sourcing strategy needs to be at