Background of the company

Harvey Norman is considered as the largest Australian retailers who are offering the range of products in the market like furniture, consumer electronics and also fun products. It has been seen that this company manage the activities through its franchise. The franchises of the company are 280and the store of company is in Australia, Europe, New Zealand and South East Asia under various brands like Joyce Mayne and Domayne. The CEO of the company is Katie Page who helps to contribute towards the growth of the company.

It has been seen that company is able to establish the business in the Australian retail sector but the company has to face the huge competition from the competing brand in the market like David Jones and Coles (Harvey Norman, 2018). The company was selected just because of the creative strategies considered by it. The company has the large product line in which there are many products which are offered in the market. The products which are offered by the company are furniture, laptops, kitchen appliances and video gaming. These are the products which are offered by the company in the competitive market.

Business level strategies 

Cost leadership strategy

 In Harvey Norman, the strategy focuses on attracting the large customer’s base and also the prices are kept low so that it can be simple to attract the customers towards the products and services of the company. The company emphasizes on purchasing the products in large quantity from the suppliers so that it can be easy to maintain the price ratio and just because of this the company offers products at low price as compared to other competitors like JB-HIFI and IKEA.  Also, from starting the company maintained the price leadership strategy which helped in achieving success and growth in high competitive market (Armstrong, Adam, Denize & Kotler, 2014). 

The differentiation of the products by the company is done by presenting the products in a unique manner. It has been seen that the outlet of the company have special designs and environment which attract the customers towards the products of the company. Quick services are offered to the customers which also enhances the overall level of satisfaction (Steenkamp, 2017). 

It has been analyzed that Harvey Norman do not provide the full array of the consumer goods but also take into consideration the strategy of reducing the cost of the products by purchasing it in the large quantity. Through this strategy it can be simple for the company to attain the entire competitive advantage in an effective manner (Berman, 2015).

Strategies of the company

Harvey Norman emphasized on the focused differentiation strategy in which the company takes into consideration the strategy of selling the unique products related to home appliances and fun products.

There are different types of corporate strategy considered by the company. Harvey Norman considered the vertical integration strategy to grow in the market. The managers of the company considered the corporate level strategy in vertical integration to search which industries their company should focus so that profits can be earned. There are two types of vertical integration considered by the company. One is related with forward vertical integration and next is related to the backward vertical integration. It has been examined that company is using the backward vertical integration to enhance the operations of the business and also to maximize the profits (Young, Tsai, Wang, Liu & Ahlstrom, 2014).

There are many advantages which are achieved by the company by considering the strategy of vertical integration. Harvey Norman focuses on developing the skills of the employees through training and experience and also the company invested in the specialized products because it helps to lower the cost structure and also differentiate the products in the market. The company also focused on improving the scheduling. Strategic advantage has been considered when vertical integration makes it simple and more effective for the plan to coordinate and transfer the products on the store (Ethiraj, Gambardella & Helfat, 2017).

Also the company considered the vertical integration so that it can be simple to achieve the bargaining power over the suppliers and it will also help to enhance the profits. In the present scenario, Harvey Norman has considered as one of the big suppliers of the products and they use this by reducing the price as company pays for its input by reducing the overall cost structure (Doz, 2017).

The company focused on enhancing the networks in the market. So, Harvey Norman, MacPac and Blue bridge Cook Strait ferry join the New Zealand Airports. The company opened the outlet so that it can be easy to enhance the entire demand of the products in the competitive market.  To enhance the network the company also focused on selling the products through online platform which enhanced the link with the large customer base. In partners and alliance, Harvey Norman partnered with the commercial supplier of Clamroc Constructions so that highest quality of the products can be maintained (Wheelen, Hunger, Hoffman & Bamford, 2017). 

Current strategies of the company

The company focused on enhancing the entire market share and just because of this the global strategies are considered which helped to survive in the high competitive market. The global sales of the company has enhanced to $3.09 Billion (Avenell, 2018). The company achieved success just because of the omni channel strategy which is considered by the company on the global platform.

 It has been examined that just because of this strategy the company focused on improving the entire performance which has also given positive impact on the routine activities managed by the company. The option related to franchise turned into the strong performance of the company and also the company achieved success (Heide, Kumar & Wathne, 2014). To enhance the more sales on the global platform the company considered the strategy related to minimizing the entire production cost through outsourcing. Also the marketing strategy is considered by the company in which the products are displayed in the innovative way. By displaying the products in the innovative manner the company focused on attracting the customers towards the products and services offered on the global platform (Rothaermel, 2015).  

Harvey Norman considered various strategies so that it can be simple to accomplish the entire goals and objectives. Strategies are considered as an important part of the company as it helps to achieve success in the market. It has been seen that just because of the innovative strategies considered by the company the large market share has been grabbed. On the global platform also the company achieved growth and success (Wirtz, Tuzovic & Ehret, 2015).  The current strategies which are considered by the company are many.

One of the best strategies considered by the company is related to the low price strategy in which the company offered the products at low price in the market. Harvey Norman focused on maintaining the quality of the products by offering products at low price. Just because of the low price the company attains success in the market and also large market share has been grabbed in the competitive market. The products are purchased in the large quantity so that it can be simple to reduce the cost as the products purchased in the bulk are less costly as compared to the other products (Banerjee, 2014).

Competition pricing strategy is also one of the strategies which are considered by the company as it helps the business to do research on the internet and also by checking the price catalogues. This strategy provides proper insight to the company of the prices which are in the market. Through internet the company can easily check the prices of the customers.  This strategy is works for the product based sales which is adopted by Harvey Norman. So, one of the best strategy considered by the company is related with the competition strategy that help the business to grow in the competitive market (Balasubramanian, Bhattacharya & Krishnan, 2015).

Evaluation of current business strategy

It has been seen that Harvey Norman also considered the strategy of the promotion. In which the products are promoted by the company on the social media sites. It has been examined that company achieved growth in the market just because of the promotional strategy which is considered. In this the products which are launched by the company in the market are showcased so that customers can gain knowledge of the product introduced in the market (Helfat & Peteraf, 2015). This helped the company in maintaining the large customer base and also focused on maintaining the long time relations with the customers. This strategy assisted the company in accomplishing the goals and also in attaining the large market share. As the company operates its function through franchisee so that advertisements or the promotions vary according to the place the outlet is situated (Percy & Elliott, 2016).

 So, by effective promotional technique the company achieved growth in the market and the overall sales has been enhanced.  There are also various discounts and offers introduced by the company which attract the attention towards the product of the company. It has been seen that on special occasions or festival the company focuses on giving discounts so that customers can be attracted towards the products and services of the company (Hill, Jones & Schilling, 2014). 

Also in the marketing area the company focused on spending the large amount so that it can be simple to promote the products in the market. It has been seen that advertisements are given by the company and also the company has a strong presence in the newspapers, commercial and subscription TV. Harvey Norman also emphasis on taking into consideration the sports sponsorship so that customers can be attracted towards the products offered in the market. The main aim to give sponsorship in the sports event is to steal the customers away from the retailers who are not there in the market like Clive Peeters and Wow Sight & Sound (Avenell, 2018).

This is also considered as one of the strategy which is considered by the company for its employees. It has been investigated that company offers training to the employees so that they can learn new and innovative ways to deal with the customers. It is important for the employees to know how to manage or deal with the customers. So, Harvey Norman focuses on giving training to the employees so that their skills can be developed and it also help in maintaining the good relations with the customers (Adner, 2017). The main purpose of giving training to the employees is related to the satisfaction level of the customers which is important for the company. If customers are satisfied then it can be simple for the company to grab the large market share. The skills are taught to the employees to deal with the customers so that customers can be satisfied with the management of the company. It can be stated that the company can achieve success then the customers are happy with the services given to them (Haff & Triplett, 2015). So, training and development helps to groom the employees and also direct them towards the overall activities of the company.

Recommendation for alternative strategic initiatives

One of the best current strategies of the company is related with Omni channel strategy through which the company attained success in the competitive market. Harvey Norman analyzed that the sales can be enhanced if focus is given on ecommerce platform. It has been seen that through this the overall sales of the company has been enhanced. So, company focused on introducing the products on the websites and also the services are offered by the company through the internet. It has given success in the market and now also the customers are availing the services through proper channels (Holmes Jr, Hoskisson, Kim, Wan & Holcomb, 2018).

 It has given positive impact on the overall activities of the company and due to this the company attracted the customers towards the products and services of the company. Also it has been seen that now day’s customers are demanding for relevancy and personalization which can be only received through online platform and also through digital commerce platforms. This strategy considered by the company helped to achieve the large market share and also enhanced the image of the company in the market (Howarth, 2018).

The company focused on enhancing the networking by considering the different partners. It has been seen that networking can only be enhanced if there are partners who have the goal to enhance the market share. So, this is considered as the strategy which is considered by the company in the competitive market. In this Harvey Norman focused on enhancing the networks in the market. So, Harvey Norman, MacPac and Blue bridge Cook Strait ferry join the New Zealand Airports. The company focused on collaborating with commercial supplier of Clamroc Constructions as it can help the company in maintaining the entire quality of the products which are offered in the market (Krafft, Goetz, Mantrala, Sotgiu & Tillmanns, 2015).

 This strategy helped the company to enhance the presence in many countries as with different partners the company collaborated so that it can be easy to enhance the market share in the competitive market. Now also the company is focusing on enhancing the network so that it can be simple to maintain the goodwill on the global platform. The aim of the company is to open the franchise in every area so that it can be simple to enhance the market share and it can also impact the overall sales of the company in the competitive market (Ismail,  Rahman, Ismail, Daud & Khidzir, 2017).

Harvey Norman also focused on enhancing the customer’s experience who visits the franchisee stores. In tis the strategy considered by the company is related with the display of the products. The products are displayed in the innovative manner by the company which also attracts the attention of the customers towards the products. The main objective of the company is to enhance the experience of the customers so that it can be simple to attract more customers towards the products and services of the company. Also the company focused on home delivery which enhances the overall satisfaction level of the customers. Now customers can easily order by sitting anywhere. This strategy has given positive impact on the entire operations of the company (Mehta & Tajeddini, 2016).

Conclusion 

So, by analyzing the report it has been concluded that Harvey focused on various strategies which affected the entire operation of the company in the positive manner. It has been examined that the current strategies which are considered by the company has given positive impact and helped the company to achieve success in the market.

 The strategies like Low price strategy; promotional strategy, Networking strategy, training and development, Omni channel strategy has affect the overall demand of the company product in the market. These strategies considered by the company helped to achieve the competitive advantage and also created positive image in the mind of the customers. So, it is recommended that company should focus on these strategies so that it can be simple to accomplish the objectives in the competitive market. Also with the help of these current strategies the company can focus on controlling the overall activities of the company.

References 

Adner, R. (2017). Ecosystem as structure: an actionable construct for strategy. Journal of Management, 43(1), 39-58.

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.

Avenell,P. (2018). $200 million later, Harvey Norman’s saturation marketing strategy questioned. Retrieved from https://www.applianceretailer.com.au/2012/03/tgxrktjxoj/

Balasubramanian, S., Bhattacharya, S., & Krishnan, V. V. (2015). Pricing information goods: A strategic analysis of the selling and pay-per-use mechanisms. Marketing Science, 34(2), 218-234.

Banerjee, M. (2014). Misalignment and its influence on integration quality in multichannel services. Journal of Service Research, 17(4), 460-474.

Berman, B. (2015). How to compete effectively against low-cost competitors. Business Horizons, 58(1), 87-97.

Doz, Y. L. (2017). Strategic management in multinational companies. In International Business (pp. 229-248). Routledge.

Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2017). Reviews of strategic management research. Strategic Management Journal, 38(1), 3-3.

Haff, G. G., & Triplett, N. T. (Eds.). (2015). Essentials of strength training and conditioning 4th edition. Human kinetics.

Harvey Norman. (2018). About Harvey Norman Online. Retrieved from https://www.harveynorman.com.au/about-harvey-norman-online 

Heide, J. B., Kumar, A., & Wathne, K. H. (2014). Concurrent sourcing, governance mechanisms, and performance outcomes in industrial value chains. Strategic Management Journal, 35(8), 1164-1185.

Helfat, C. E., & Peteraf, M. A. (2015). Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831-850.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Holmes Jr, R. M., Hoskisson, R. E., Kim, H., Wan, W. P., & Holcomb, T. R. (2018). International strategy and business groups: A review and future research agenda. Journal of world business, 53(2), 134-150.

Howarth,B. (2018). Omni channel. Retrieved from https://www.cmo.com.au/article/588754/navigating-future-omni-channel-retailing/

Ismail, S., Rahman, A. A. A., Ismail, A. R., Daud, K. A. M., & Khidzir, N. Z. (2017). Internet marketing strategy for furniture industry: A research based ergonomics sofa. In Advances in Human Factors, Business Management, Training and Education (pp. 571-579). Springer, Cham.

Krafft, M., Goetz, O., Mantrala, M., Sotgiu, F., & Tillmanns, S. (2015). The evolution of marketing channel research domains and methodologies: an integrative review and future directions. Journal of Retailing, 91(4), 569-585.

Mehta, A., & Tajeddini, J. (2016). Developing system approach for integrated customer relationship marketing in light of different prospective. Middle East Journal of Management, 3(2), 110-143.

Percy, L., & Elliott, R. H. (2016). Strategic advertising management. Oxford University Press.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Steenkamp, J. B. (2017). Global Brand Strategy: World-wise Marketing in the Age of Branding. Springer.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Wirtz, J., Tuzovic, S., & Ehret, M. (2015). Global business services: Increasing specialization and integration of the world economy as drivers of economic growth. Journal of Service Management, 26(4), 565-587.

Young, M. N., Tsai, T., Wang, X., Liu, S., & Ahlstrom, D. (2014). Strategy in emerging economies and the theory of the firm. Asia Pacific Journal of Management, 31(2), 331-354