The 5 Elements of Quang Chức’s Strategy

CASE STUDY on

“The 5 Elements of Quang Chức’s Strategy”

Part 1 - Problem

Why do all companies including Quang Chức need to develop strategy diamond?

Today, competition is so strong. Numerous players in a market compete against each other. To win, firms need a strategy. Strategy plays critical roles in successful company, is perceived as the central, integrated, externally oriented concept of how a firm will achieve its objectives - how it will compete against its rivals. We noted that within a firm’s business operations, its objectives will generally encompass some notion of being successful at selling products or services to customers.

A strategy thus encompasses the pattern of actions that have been taken and those that are to be taken by organization in pursuing its objectives.

Clearly, any organization charged with a goal to accomplish must go through a process of strategic planning. The problem is, not many groups fully understand how to formulate a strategic plan that is at the same time parsimonious and flexible. Most organizations attempt to perform strategic planning in the wrong order. Many see risk analyses as the first step to be followed; some people simply break down tasks by looking at the deadlines and performing first those that must be finished earliest. A cogent and regular system of decision making is not often employed.

Accordingly, a strategy consists of an integrated set of choices. These choices can be categorized as five related elements of strategy based on decisions that managers make regarding arenas, vehicles, differentiators, staging, and economic logic. Most strategic plans focus on one or two such elements, often leaving large gaps in the overall strategy.

Quang Chức is a sole proprietor founded since 2005. It offers high qualitative products of bathroom, sanitary, kitchen equipment, tiles and wood flooring at premium prices, mainly for Hải Dương city market. The company’s headquarter is located in 5th Nguyễn Trãi Street, Nguyễn Trãi Ward, Hải Dương City. It employs 20 employees for business work. In 2007, Quang Chức had a 25 billion VND income, generating profit before tax of just over 2 billion VND. 2010 is the year Quang Chức has been received Certificate of being the retail business that gained the best revenue around Hải Phòng - Quảng Ninh (Vietnam) from TOTO GROUP - the Japanese professional producer in bathroom, sanitary equipment materials. Quang Chức cares about all kinds of customers, from low demand to high demand of orders.

Thus, from a small retail shop, Quang Chức now becomes one of the biggest retail companies at construction field in Hải Dương market. How can they do that?

This case study