Competitive Strategy

Competitive Strategy

The competition strategy Crownpoint Cabinetry carries a high-quality strategy, a form of differentiation strategy with high profit margins (15% higher than the average in the United States.) (Cf. Anthony & Govindarajan 2007: 68). They work within a luxury segments where they offer their customers handmade bespoke kitchen modules. The market in which the company operates is characterized by a large number of small players where CPC is a relatively large company with 85 employees.

Although the company has come to a turning point where sales, profit margins and increased employee satisfaction, we believe there are several points for improvement that could enhance your competitiveness and market share. We believe that you should have a greater focus on measuring and assessing the factors that are in line with your overlay of competitive strategy, that is high quality.

Improvement Points that would create a more competitive

Measure and reward system

The measurement and reward system could be changed to further improve the productivity of the company. Currently measured and rewarded / punished employees on partially irrelevant factors, including how much they can reduce labor costs and how well they follow safety regulations.

We do not believe that the measurements used reflect the company's overall quality strategy. Currently placed much focus on financial metrics around cost reduction of labor costs. This had been an issue if they pursued a lågkostnadsstrategi, but then they apply a differentiation strategy with focus on quality metrics should reflect quality rather than cost reduction.

We believe that the strategic coherence would improve the measurement and reward system changed, so that what is measured and rewarded is quality factors rather than cost factors. This would improve the implementation of Strategy oh lead to improved performance. Brian himself has expressed that it is difficult and challenging to measure and evaluate performance in quality, but this quality is the key strategy will be essential to try to formulate relevant measures of quality.

We suggest that the company faced a balanced scorecard as a performance measurement system. Where financial data are supplemented with non-financial measures that reflect quality. Right now focus primarily on financial metrics and cost reduction.

Backroders is also measured, but rather from a financial cost perspective than a satisfied customer safety and quality perspective.

The company needs a measurement system of both financial and non-financial measures related to the critical success factors (Anthony & Govindarajan 2007: 463) The critical success factors we have identified for you to be able to implement