Strategic Management of Mango - Essay Example

The company has recently introduced two new product lines, an initiative that is consistent with the company’s innovative image. Through these new product lines, the company is hoped to triumph the marketplace. Mango is a company that is characterised by strong corporate values and beliefs. These values and beliefs, translated in the company’s corporate strategy have been instrumental in the company’s effort to fight off competition and to ensure its survivability in tremendous economic crisis.

The company in its years of operation has been able to develop effective communication systems and business processes. The company has used the rapidly evolving technology to its advantage by adopting these technological advancements in its business processes. Although the company is in a far better position than its competitors, but some of its biggest rivals like ZARA have successfully managed to build a business model that has allowed it to be highly responsive to its environment, along with nimble and flexible operational design.

These capabilities of ZARA have made it the market leader of this industry, but Mango, in no ways can be classified as a company which is far behind its market leader. The company has a very efficient logistics system that is augmenting its strong suppliers and distributions network. The company uses its own stores and franchises to reach out to its customers; however, recently the company has started using its website to further penetrate into the online market. The company has also launched two new product lines, one targeting men and the other targeting VIPs.

These new product lines along with a mature product line of female wear are presumed to generate the future profitability of the company. Advantages of the Business Model of Mango: The most important aspects of the company’s business model have been its logistics system. This system has proved to be a defining point for the company. This logistics system has helped the company to deliver its finished goods from production centres to distribution centres in 4 days. Even though this is not better than ZARA’s four day delivery system but still it is very close to the best practice of the industry leader.

The company has a strong network of professionals, who are working very hard to anticipate the future of the company’s market. Other than this the training methods of the company for the point of sale employees has been very effective in creating customer loyalty. Mango has been very effective when it comes to managing its relationship with its suppliers, who are spread across the globe. The systems in place have been very helpful in integrating the value chain of Mango with its suppliers and other channel partners.

The most important reason for company’s success has been its ability to take innovative initiatives. Recently the company has initiated a method through which it would cut out its distribution activity from its value chain. In this initiative the manufactured products would be directly sent to the company’s selling points without going to the distribution centres, this means that these finished products would leave directly from the manufacturers’ factory to the stores. This will enable the company to implement its cost cutting strategy with greater