Business Problem-Solving and Strategy

3Lay Out the Options 1: Growing Potentials for the Preestablished Company

Aim to Grow Preestablished Business Models and Positioning

Once the issues are organized, we'll start polishing the strategic options. Let's take a look at the options in the case where there's growth potential without drastically changing the current business model and/or positioning.

A business model will give you a framework of how to earn a profit, while positioning will establish where you stand in the market relative to the competitors, defined by targeted clientele, offered value, and distinction. We'll consider growth options following these preestablished business models and positioning.

Matsui‐ya's current business is a primary example of this. Poised as the “comprehensive department store Japanese sweets model,” the performance has been lackluster in recent years. While they have strengths such as a rich history, acclaimed red‐bean paste, and a reliable brand image, there are industry KSFs that weren't met, causing their decline. It's true the Japanese sweets market within the department store may have plateaued, but there is room for improvement.

Therefore, without drastically changing the current business model and/or positioning, Kazumi and Takeda believe the current business can be salvaged by improving marketing (products, price, promotion, channel) and operations (product development, ...