Strategy formulation for e-TYPES project- Copenhagen Business School taught by Marcus Moller Larsen.

1. Strategy for e-TYPES
How can e-TYPES grow?
By-Venkatesh Chowdary Nagandla 24/2/2019

2. Situation of e-TYPES
• e-TYPES is a Danish design firm founded by four designers, who
were disappointed with the current landscape of design when they
graduated. Their idea followed edgy and catchy designs, that were
simply modern and out of box “Smash the world of design”
principles
• e-TYPES wants to understand its clients needs, but delivers
something more unique and high quality, which goes beyond what
the client has expected. Designers of e-TYPES don’t want to get
distracted by limitations proposed by their clients.
• But here the problem arises, because the firm focuses on high
product differentiation by creating edgy designs, disputes among
design team versus managers and other employees paves way
frequently as a result of turning down clients who prefer more of
traditional images.

3. Key questions for
future growth
 As founders in e-TYPES said their business model is based on
creating edgy designs, turning down clients with requirements of
traditional designs may be a viable factor for company’s growth
and future.
 Questions like: Should the company give away its edginess and
focus on a broad segment of clients, to fuel their growth, and
hence establish a less defined name in large design market.
 Or the company should stick with its edginess having a no
compromise strategy, where it doesn’t care for BORING designs
and hence lose money(sometimes high amounts) and hence
establish as a premium high end brand that doesn’t want to go
too mainstream.

4. Sources of
competitive
advantage
 Sharpening the brand by separating it is the way for sustainable
competitive advantage. The proposed strategy is therefore: Both
approaches can be combined! By developing two separate brands,
one adopts a cost leadership strategy focussing on traditional
clients and other goes with product differentiation strategy
continuing its work as before.
 The idea behind separating two business models is to avoid two
work streams developing contradicting market positions that
interfere with each other and leave the company with an undefined
brand. e-TYPES can focus on innovative designs while other works
with clients that don’t want edgy designs.
 A shared business development team can identify the clients to
work with either edgy or traditional designers. Designers and
employees can be distributed accordingly in two units on their
choice of creating designs for clients

5. SWOT Analysis
Strengths
• Edgy brand with e-TYPES. This
will remain as it is.
• Large customer base for other
unit. Thus greater market
expansion and growth catering
huge client base.
• Separate work for everybody,
by hiring people to work in
classic design industry for other
unit, the firm can focus on right
customers and design work.
Opportunities
• Earn both currencies, by means
of product differentiation and
cost leadership strategies.
• Growth by providing right
service to right clients. Hence
additional impact for both
reputation and money of two
firms
• With growing revenues,
Internationalization strategies
can be a possible means of
entering into untapped markets.

6. SWOT Analysis
contd…
Weaknesses
• Greater workload on business
services such as HR,
accounting, tax etc for
managing two brands, than
just one.
• Sometimes client may not be
able distinguish between two
brands due to lack of
communication and hence
choose an incorrect design
type.
• Insufficient funds for
establishing other unit, hence
firm may dissolve upfront.
Threats
• Competitors and new firms
may replicate designs and
hence steal profits.
• Employees may leave the
company and form their own if
their needs are unmet and
flexibility is not provided.
• Unhappy clients damaging firm
reputation in local countries if
local differences are not met.

7. The End