Harvey Norman's Essay On Strategies And Growth In Retail Sector.

Understanding of strategic management theory and tools, and the quality of Information sources.

Critical analysis and synthesis of argument.

Application of strategic management theory and tools.

Harvey Normal is one of the biggest Australian retailers who provide products in the market. The products which are offered in the market are in the category of furniture, consumer electronics and also fun goods. There are franchisees of the company that help to manage the overall activities in the competitive market. There are approximately 280 franchises and there are various stores located in Australia, New Zealand, Europe and South East Asia under the brands like Joyce Mayne and Domayne. Katie Page is the CEO of the company who focuses on contributing towards the overall growth in the market (Harvey Norman, 2018).

It can be examined that company can enhance the market share in retail sector but due to high level of competition from the companies like Coles and David Jones, the company has to face various challenges. Harvey Norman is selected due to the creative strategies which are considered.  It has been examined that the company has wide product line in which there are different segments provided in the market. The products which are provided by the organization are in different segments like in furniture, laptops and video gaming. There is wide range of products offered by company (Harvey Norman, 2018).

 It can be stated that company considered this strategy so that wide customer base can be maintained and also the focus is on reducing the prices to maintain the large customer base easily towards the products and services provided. Aim of Harvey Norman is to buy the products in bulk from the suppliers so that the price ratio can be controlled and also due to this the products price are reduced in comparison to the price of the competitor products like from Ikea and JB-HIFI. From the initial level the company maintained the leadership strategy which has boosted the overall success and growth of the company in the highly competition market (Armstrong,  Adam, Denize & Kotler, 2014). 

Differentiation strategy

The products which are offered by Harvey Norman can be differentiated on the basis of presentation of the products in a different way. It has been analyzed that outlet of the company present the products in different designs and also positive environment is maintained that help to maintain the demand of the products. Also, the services which are given to the clients are quick that maximizes satisfaction of the customers (Adner, 2017).

Focused cost leadership

Focused cost leadership

It can be stated that the company does not focus on offering full array of products but they consider technique if minimizing the entire cost of products at the time of buying it in the large quantity. With the help of this strategy, it can be easy for Harvey Norman to achieve the competitive advantage which exists in the market.

Focused differentiation strategy

The company considered the focused differentiation strategy in which the emphasis is on the strategy of selling the goods in the category of home appliances and also fun products. This is the best strategy which is considered to boost the sales of the company and also it induces the customers to purchase the products and services in the large quantity. By differentiation the products from other competitors the overall customer base can be boosted and also it can help in attaining the positive outcome in terms of entire sales of the company.

There are various corporate strategies which are taken into consideration by the company. One of the strategies is vertical integration strategy which is considered with the aim to expand the market share. The top management of the company focused on the corporate level strategy in vertical integration so that it can be easy to evaluate that in which sector the company should emphasize so that positive results can be attained. The different vertical integrations which are used by Harvey Norman, first is forward vertical integration and the second is backward vertical integration. It is analyzed that Harvey Norman is focusing on the backward vertical integration to maximize overall activities of company and it aims at enhancing the profits (Hill, Jones & Schilling, 2014).

There are various benefits which are attained by the company and this is because of the strategy of vertical integration. The company emphasizes on developing the employees skills by giving training and also the aim of the company is to invest in the specialized products so that it can assist in reducing the low cost structure and it can be easy to make differentiation in the range of the products. Harvey Norman emphasized on bringing improvisation in process of scheduling. The strategic advantage can be taken into consideration at the time of considering the vertical integration as it helps to maintain the overall plan which coordinate and transfer the products to the store (Berman, 2015).

Harvey Norman focused on vertical integration so that the bargaining power over the suppliers can be maintained and it also assists in maximizing the profits. In the recent scenario, Harvey Norman is known as the largest suppliers of the product and they emphasize on minimizing the cost as company pays for the overall input by minimizing the overall cost structure.

Focused differentiation strategy

To maximize network, the organization is emphasizing on various different concepts. It has been examined that MacPac and Blue Bridge Cook Strait Ferry joined the New Zealand Airports. Harvey Norman also set up their outlets to maximize the Product need and to enhance the market share. To maintain large network of organization the focus is on selling the products via online platform which helps in maintaining the wide customer base. In relation to partners and alliance, it has been observed that company partnered with the commercial suppliers who are named as Clamroc Constructions. The company partnered with the motive of boosting the quality of entire products in the market (Banerjee, 2014).

Harvey Norman emphasized on increasing the market share due to the global strategies taken into consideration. These strategies assist in surviving in the highly competitive market. The overall sale on the global platform has been increased to $3.09 Billion. The company also attained the positive outcome due to the Omni channel strategy used by organization on the national and international platform (Avenell, 2018).

It can be stated that by considering the overall technique the organization emphasized on bringing improvisation in overall performance that positively affect the overall operations of the company. The best technique used by the company is franchise which boosted performance and helped in attaining large market share. To boost the sales on the international platform, Harvey Norman emphasized on the strategy of reducing the production cost with the concept of outsourcing. The marketing strategy used by Harvey Norman relates with the products which are presented in an innovative manner. To showcase the products in a unique way, Harvey Norman can emphasize on maintaining the customer base by offering the products on the international and national platform (Heide, Kumar & Wathne, 2014).

The company focused on various strategies as it assist in achieving the set goals and objectives. Strategies can be known as the essential aspect of the organization as it assists in maintaining the large market share. It can be examined that due to innovative strategies taken into consideration by the company the large market share has been attained and also on the national and international platform the company attained growth and success (Percy & Elliott, 2016). There are various strategies considered by the company in the present era.

It is one of the effective strategies which are taken by the Harvey Norman. In this, the company focused on providing the products at low price in the market. The company also emphasized on boosting the quality of the products by providing the products less price. Due to low price the company maintained its competitive advantage in the market and due to this the positive impact has also been analyzed on the goodwill. The technique related to purchasing the products of Harvey Norman is best as the emphasize is on buying the large quantity as it can help in minimizing the overall cost of the products in the bulk and it less costly as compared to the other products (Balasubramanian, Bhattacharya & Krishnan, 2015).

Vertical integration strategy

It has been observed in this competition pricing strategy is also the strategy which is used by the company. This strategy assists the business to do in-depth research on internet and also different catalogues are considered to check the price. This strategy offers proper insight to the organization in relation to the prices which exist in the market. With the help of internet, it can be simple for the company to analyze the prices of competitors. The technique is useful to boost the product based sales which is considered by the company. Therefore, it can be stated that the best strategy taken into consideration by Harvey Norman is competition strategy as it assist in maintaining the growth of the company in the highly competitive market (Krafft, Goetz, Mantrala, Sotgiu & Tillmanns, 2015).

Promotion is the strategy which is considered by the company. In this, the products are promoted through social media channels or sites. It can be stated that the company attained positive outcome and it is due to the promotional technique that is effective. The products are offered by the organization on the global platform and it is presented in a unique manner as it can help the customers to attain knowledge of the products which are introduced in the market. This also assisted the organization in attaining the wide market share and it emphasized on boosting the long time relation with consumers. By taking into consideration the technique, the organization accomplished objectives and attain good image. It has been observed that company conduct it operations by franchisee so the overall advertisement or the promotion cost varies according to the place of the outlet which is located (Helfat & Peteraf, 2015).

Therefore, by considering the best promotional technique the company attained growth in the market and also due to this the sales has been boosted. There are discounts and offers which are given by Harvey Norman and it attract the overall attention of the customers towards the products and services given by the organization. It can be analyzed that on special occasions and also on the festival the company provide discounts to the customers so that sales can be boosted (Zutshi, Creed, Holmes & Brain, 2016).

In the overall area of marketing, the company also emphasized on spending the large amount as it can be simple to boost the sales of the products in the market. It can also be examined that advertisements are offered by the company and due to this there is strong presence of the company in the newspapers, commercial and subscription TV. The company also focused on sports sponsorship as it can help the customers to get the knowledge of the products easily. The main motive of the company is to focus on the sponsorship in sports to attract the consumers and to distract from the retailers who are present. The retailers are Clive Peeters and Wow Sight& Sound (Ismail, Rahman, Ismail, Daud & Khidzir, 2017).

Competition pricing strategy

Harvey Norman emphasized on the strategy related to training and development. This strategy is considered by the company so that the employees in the workplace can learn new and innovative methods to deal with consumers in the market. It is necessary for the workers to have knowledge of managing and dealing with the issue in relation to the customers. Therefore, Harvey Norman emphasized on offering training to the workers so that they skills can be enhanced and also it will maximize the overall relation of the management with the customers (Wheelen, Hunger, Hoffman & Bamford, 2017). The main motive of offering training to the workers is concerned with customer’s satisfaction which is essential for the organization. If there is no satisfaction level of the customers with the product of the company then it can create difficulty  for the organization to maximize their growth in the market (Bompa & Buzzichelli, 2018). There are also various skills that are taught to the workers to interact with consumers so that large customer base can be maintained. It can be analyzed that organization can achieve success when the consumers are satisfied with the services which are given to the customers. Therefore, training and development assist in maximizing the overall knowledge of the employees and also create interest of the workers towards the activities of the company (Haff & Triplett, 2015). 

Harvey Norman emphasized on creating networks by associating with the different partners. It can be stated that networking is maximized if focus is on the different partner with the motive to increase the market share. Therefore, it can be one of the strategies which are taken by the organization to boost growth (Carkhuff, 2017).  It can be observed that Harvey Norman also joined the New Zealand Airport with MacPac and Blue bridge Cook Strait ferry. The organization also emphasized on collaborating with the commercial supplier of Clamroc constructions as it assists the company in boosting the product quality which are offered in the market.

This strategy assisted the organization in increasing the market presence in different countries and with different partners the collaboration is done to grab the large market area. In the present era, the company is emphasizing on maintaining the network as it can help in boosting the goodwill in the highly competitive market. The motive of the organization is to open the outlets or the franchise in every area so that the customer base can be enhanced. It will also help in boosting the sales of the company and can help in attaining the competitive advantage in comparison to the other competitors present in the market.

Promotional techniques

It is also the effective current strategy through which the overall operations of the company are managed. It can be observed that the company emphasizes on the sales by considering the ecommerce platform. With the help of this platform it can be simple or the company to maximize its sales on the global platform (Howarth, 2018). Harvey Norman also introduced the products on the websites so that the customers can get the information of the products and can also purchase it. It has given enhancement in the entire sales of the company and now in the present era, the company is focuses on maintaining the channels so that distribution of the products can take place in a proper manner (Holmes Jr, Hoskisson,  Kim, Wan & Holcomb, 2018).

It has impacted the overall operations of the organization and just because of this the customers can be induced in reference to the products of the company on the global platform. It can be examined that in the present era, the demand for relevancy and personalization has been enhanced and it can be only offered by online platform and through digital ecommerce platform. With the help of this strategy the company focused on attaining the large customer base and also maximized the profits in the competitive market (Doz, 2017).

Harvey Norman also emphasized on maintaining the customer experience so that customers can feel good at the time of shopping. So, to enhance the overall experience of the customers the focus is given on bringing improvisation in the presenting the products in thee outlets. Through this strategy the products are displayed by the company in an innovative manner which attracts the consumers to the products of the organization. The presentation of the products is in a systematic manner which also attracts the customers and helps them to select the products of their own choice (Mehta & Tajeddini, 2016).

 It has been observed that company also offers the facility of home delivery which maximizes the comfort level of the employees and also helps them to purchase the products of the company in a simple manner. In the present era, the customers can easily order the products by sitting at home and at low cost they can purchase the products by putting discounts offers given by the company. This strategy has enhanced the demand of the products and impacted the entire operations of the company in a positive way. With the help of this the company attained the benefit of attaining the competitive advantage and it is giving tough competition to the other competitors present in the market (Ethiraj,  Gambardella & Helfat, 2017).

Conclusion 

Therefore, it can be concluded by analyzing the factors that Harvey emphasized on different strategies that has impacted the entire activities of the company in a positive way  It can also be analyzed that the current strategies has also boosted the market share and sales of the company in the highly competitive market.

The strategies related to like Low price strategy; promotional strategy, Networking strategy, training and development, Omni channel strategy has boosted the demand for the products on the global platform. The overall strategies which are considered by Harvey Norman attained the competitive advantage and boosted the image among the customers. So, it can be recommended that it is important for the company to consider these strategies so that the goals can be attained. With the help of these strategies the company can manage the entire activities by analyzing the strategies of the competitors; the strategies can help in competing with the competitors present in the market

References

Adner, R. (2017). Ecosystem as structure: an actionable construct for strategy. Journal of Management, 43(1), 39-58.

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.

Avenell,P. (2018). $200 million later, Harvey Norman’s saturation marketing strategy questioned. Retrieved from https://www.applianceretailer.com.au/2012/03/tgxrktjxoj/

Balasubramanian, S., Bhattacharya, S., & Krishnan, V. V. (2015). Pricing information goods: A strategic analysis of the selling and pay-per-use mechanisms. Marketing Science, 34(2), 218-234.

Banerjee, M. (2014). Misalignment and its influence on integration quality in multichannel services. Journal of Service Research, 17(4), 460-474.

Berman, B. (2015). How to compete effectively against low-cost competitors. Business Horizons, 58(1), 87-97.

Bompa, T. O., & Buzzichelli, C. (2018). Periodization-: theory and methodology of training. Human Kinetics.

Carkhuff, R. (2017). Toward effective counseling and psychotherapy: Training and practice. Routledge.

Doz, Y. L. (2017). Strategic management in multinational companies. In International Business (pp. 229-248). Routledge.

Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2017). Reviews of strategic management research. Strategic Management Journal, 38(1), 3-3.

Haff, G. G., & Triplett, N. T. (Eds.). (2015). Essentials of strength training and conditioning 4th edition. Human kinetics.

Harvey Norman. (2018). About Harvey Norman Online. Retrieved from https://www.harveynorman.com.au/about-harvey-norman-online 

Heide, J. B., Kumar, A., & Wathne, K. H. (2014). Concurrent sourcing, governance mechanisms, and performance outcomes in industrial value chains. Strategic Management Journal, 35(8), 1164-1185.

Helfat, C. E., & Peteraf, M. A. (2015). Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831-850.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Holmes Jr, R. M., Hoskisson, R. E., Kim, H., Wan, W. P., & Holcomb, T. R. (2018). International strategy and business groups: A review and future research agenda. Journal of world business, 53(2), 134-150.

Howarth,B. (2018). Omni channel. Retrieved from https://www.cmo.com.au/article/588754/navigating-future-omni-channel-retailing/

Ismail, S., Rahman, A. A. A., Ismail, A. R., Daud, K. A. M., & Khidzir, N. Z. (2017). Internet marketing strategy for furniture industry: A research based ergonomics sofa. In Advances in Human Factors, Business Management, Training and Education (pp. 571-579). Springer, Cham.

Krafft, M., Goetz, O., Mantrala, M., Sotgiu, F., & Tillmanns, S. (2015). The evolution of marketing channel research domains and methodologies: an integrative review and future directions. Journal of Retailing, 91(4), 569-585.

Mehta, A., & Tajeddini, J. (2016). Developing system approach for integrated customer relationship marketing in light of different prospective. Middle East Journal of Management, 3(2), 110-143.

Percy, L., & Elliott, R. H. (2016). Strategic advertising management. Oxford University Press.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Zutshi, A., Creed, A., Holmes, M., & Brain, J. (2016). Reflections of environmental management implementation in furniture. International Journal of Retail & Distribution Management, 44(8), 840-859.