strategic management

1. Ideas for today and tomorrow
WHAT SHOULD E-TYPES
DO GOING FORWARD?
Capstone Project:
Formulating a Strategy in a 21st Century Creative Company
Strategy Formulation – Company e-Types
Course Created by: Copenhagen Business School
Hosted by: https://www.coursera.org
Course Author: Marcus Møller Larsen - Assistant Professor, Strategic Management and Globalization Department.
Student: Giorgi Lobjanidze Giorgi.lobjanidze@gmail.com
Companion Material: e-Types-StrategyFormulation-ExecutiveSummary _GL v1.0.pdf
27.03.2016 – Tbilisi - Copenhagen

2. Strategy Formulation Process
For e-Types Strategy formulation, following activities should be performed:
1. Setting e-Types objectives - Because the key component of any strategy statement is to set the long-term objectives of the organization.
Strategy is generally a medium for realization of organizational objectives. This will be First step in the e-Types Strategy formulation. Once
the e-Types objectives and the factors influencing strategic decisions will be determined, it will be easy to take strategic decisions.
2. Evaluating the Organizational Environment - The next step will be to evaluation of the environment in which the e-Types operates and its
organization values. This includes a review of the organizations competitive position, e-Types core ideology and external and internal
factors. According these analysis we can identify e-Types own strengths and weaknesses as well as their competitors’ strengths and
weaknesses. This is often referred to as a SWOT / TOWS analysis.
3. Using BCG Growth-Share Matrix – For a e-Types portfolio planning – Taking in consideration that Market Growth It is a proxy for industry
attractiveness, market share is a proxy for competitive advantage;
4. Perform Synthesis – According collected information set e-Types environment synthesis and recommend new Mission, Goal, Objectives;
5. Formulate New Strategy for e-Types, As a general and also in the Corporate, Business and Functional sub-strategies and objectives.

3. Here is what e-Types claims before new strategy formulation :
“We challenge your ways and encourage new thinking. We craft bold solutions that inspire people around us. We
don’t follow trends, but work hard to make others follow you. We crystallize big ideas to build strong brands.
Brands that stand out and clearly communicate what they are all about. Brands that move the world forward.
Based on hard thinking, creative edge, extensive experience, and true love of brands we design that one,
visionary idea. The idea that conveys the very core of your brand, that inspires action, guides visual and verbal
communication, and provides meaningful change for your business”.
E-Types Mission - What they do - is clear: e-Types do identity. But e-Types vision - “Where they want to be” – in
future is not clear. Should they continue to prefer "edgy" work and build a reputation for that? Or should they
"grow up" and broaden their approach to appeal to more clients? They want to grow large, but growth costs
money. In other hand it is a very big deal for e-types if they could win TD Competition. It is opportunity for
company to raise their awareness as a creative company.
Now lets go to investigate what happens in reality:
e-Types current Vision Statement

4. Industry analysis – Porters 5 forces
Supplier Power
1. Internet / Dotcom boom – Opens
Opportunity for startups and Existing
Brands;
2. Suppliers Large;
3. Able to substitute;
4. Able to change;
5. Low supplier power.
Threat of New Entry:
1. Not too expensive to enter;
2. Experience needed but training and Employee
hiring options available;
3. Internet / Dotcom boom – Opens Opportunity for
startups and Existing Brands;
Bayer's Power:
1. High Bayer Power;
2. Possible to Cooperate;
3. Conservative Traditions;
4. In some cases not possible to obtain
detailed information from buyers;
5. Power of Bayer's Bayer's (Shareholders,
Community members …);
Competitive Rivalry:
1. Wide Range of Competitors (Local, Global);
2. Low switching cost;
3. Low customer loyalty;
4. Wide Range of Identity Design Products.
Treat of Substitution
1. Internet / Dotcom boom – Opens Opportunity for
startups and Existing Brands;
2. Brand Identity Market is very wide (Brand ID, Website,
Printed Materials …);
3. Edgy/Modern Identity Design not usual for potential
Customers.

5. Growth Share Matrix (BCG)
1
2
3
1. Edgy / Modern Identity for Modern Style Clients;
2. Edgy / Modern Identity for Conservative Clients;
3. Conservative Identity for Modern Style Clients;
4. Conservative Identity for Conservative Clients;
5. Edgy / Modern Printed Identity;
6. Edgy / Modern Web Identity;
7. Edgy / Modern for Identity for Global Market;
8. New Identity Trends …
6
4
Using BCG Growth-Share Matrix – as a e-Types
portfolio planning model – in the Market Growth
and Market Share dimensions relative to the
Largest Competitor and taking in consideration
that Market Growth It is a proxy for industry
attractiveness and market share is a proxy for
competitive advantage, we have following
picture for e-Types portfolio, where:
5
7
8

6. SWOT Analysis
1. Strengths (What do e-Types do well?/ What unique resources can e-Type draw on? What do others see as e-Type strengths? )
1. Talented Staff in the Modern Identity industry Design;
2. Good implemented Modern / Edgy projects portfolio;
3. Team Working Synergy – Producing Joint effect in the approved projects.
4. The e-Types owners like to challenge themselves and their clients to create radical, innovative designs.
5. e-Types challenge Clients edgy ways and encourage new thinking.
6. Stated desire to reexamine and appropriately adapt their activities in a constant “learning” process;
2. Weakness (What could e-Type improve? Where does e-Type have fewer resources than others? What are others likely to see as weaknesses ?)
1. Strategic Thinking Synergy – No agreement about company future.
2. For e-Types owners, money is not as central as their personal satisfaction of doing what they love, the way they love doing it.
3. No clear arguments about Refuse to work on certain jobs;
4. Poor and not organized effort to Reexamine and appropriately adapt their activities in a constant “learning” process;
5. Long time discussions about next steps and no decisions about customers real preferences;
6. Weak habits of value proposition to customer (Value – Cost paid and Benefits received - from Client side of view );
3. Opportunity (What opportunities are open to e-Types? What trends could e-Type take advantage of? How can e-Type turn their strengths into opportunities ?)
1. Internet / Dotcom boom – Opportunity for easy research information about clients and industry trends;
2. Entering in the new market segments: Web Site, Printing materials …
3. Visibility which highlights company vision to the public;
4. Awareness as a Creative, Open and Client friendly Company;
5. Growth via a constant “learning” process”.
4. Threads (What threats could harm e-Type? What is e-Type competition doing? What threats do e-Types weaknesses expose Company to ?)
1. Internet / Dotcom boom – Opportunity for all rivals in the global and local market;
2. Refuse to work on certain jobs, turning down those clients that do not “fit in” with the creative edge e-Types is accustomed to deliver its
clients;
3. e-Types partners might send a negative message to their work force that can in turn, distance themselves from their ideals;
4. Risk of losing the “edge” and efficiently compete in a usually saturated market.

7. e-Types Competitive advantage
Industry analysis Conclusions:
1) The threat of new entry is quite high: if anyone looks as if
they're making a sustained profit, new competitors can
come into the industry easily, reducing profits;
2) Competitive rivalry is extremely high: if someone raises
prices, they'll be quickly undercut. Intense competition
puts strong downward pressure on prices.
3) Buyer Power is strong, again implying strong downward
pressure on prices.
4) There is some threat of substitution.
Recommended Competitive advantage:
From industry and e-Types Environment analysis it is
clear that for e-Types Competitive advantage, cost
advantage isn’t preferable way and company should
think in the differentiation advantage for future
success.
e-Types should offer something which is so unique, so
sought after so that customers are willing to pay a
premium for their product and only your product,
then Company will have a differentiation advantage.
But e-Type should make effort for value proposition
to customer (Value – Cost paid and Benefits received
- from customer side of view) and avoid Solutions
that aren’t relevant for Customers.

8. E-Types new Vision Statement and Objectives
Corporate Objectives (BCG)
1. Benefit from Internet / Dotcom boom – Make permanent clients
and industry trends Research;
2. Work with Conservative and Modern Companies;
3. Consider Entering in the new market segments: Web Site, Printing
materials;
4. Investigate Global Market Opportunities.
Business Objectives (5 forces)
1. Work closely to Clients, promote edgy designs and encourage new
thinking;
2. Promote radical, innovative designs for Customers and Potential
Customers;
3. Organize e-Types partners forum (Or some kind of Survey and Feedback
Solution) where customers can send a positive / negative message
about e--Types work and work force, Customers ideals about different
aspects of Company and Design;
4. Raise Awareness as a Creative, Open and Client friendly and Stable
Company;
5. Organize e-Types partners forum (Or some kind of Survey and Feedback
Solution) where customers can send a positive / negative message
about e--Types work and work force, Customers ideals about different
aspects of Company and Design.
Functional Objectives
1. Develop corporate culture for value proposition to customer (Value –
Cost paid and Benefits received - from Client side of view;
2. Adapt e-Type staff activities in a constant “learning” process using
various tools (Lessons learnt, Brainstorming for new ideas, Innovations
etc.);
3. Motivate e-Type Staff Team Working Synergy;
4. Hire / Work with Talented Designers (Take attention in Students).
Values
• Capture Opportunities and make things happen;
• Do things better than anyone else in the identity
industry;
• Foster openness, respect and create excitement;
• Synergy, Teamwork, Innovations and Creativity.
MISSION
• We do Identity.
Vision
• We will be the most valued business partner of our
customers.