Company has reformulated its strategy documents, created new mission statement. The changes started with the change in the distribution network and to make retailers as dealer-partners and to motivate them to promote exclusively the company's products. In its biggest market (US) company collaborated with large retail chain Jo-Ann Fabrics and crafts and opened exclusive retail outlets. In its original country (Sweden) company has already a large retailer's network. In other parts, the company do not have exclusive retail network. Changes at the top management level with widespread changes in overall organizational structure as well as in operating systems. Now in the changed situation company has to adopt different business strategies and analyze that whether these strategies are successful or not.
Business strategies: There are three main success criterions for the companies Suitability, Acceptability and Feasibility, which could be analyzed as follow: Suitability: It is a broad criterion concerned with whether a strategy addresses the circumstances in which an organization is operating the strategic position. Suitability can be thought as the rationale of a strategy and whether it makes sense in relation to the strategic position of an organization.
Feasibility: Feasibility is concerned with whether an organization has the resources and competences to deliver a strategy. A number of approaches can be used to understand feasibility. Financial feasibility and Resource deployment are the two important approaches generally used for feasibility analysis.
Now we will analyze the company VSM on the basis of above mentioned three criteria.
The mission statement, VSM has clearly defined its priorities as to develop, produce, market and sell consumer sewing machine and related products, creating demand, being a customer driven company through providing quality products, satisfy customers and dealers-partner alike, and continuously adding values to its brands. It specifically emphasized on employees satisfaction and growth opportunities by adding value to its human resources. Its ultimate aim was to be a leading premium company in the world of sewing. It basically aims towards consolidation of its position in the market. To achieve these objectives, company has to formulate its business strategies carefully after analyzing its core areas of competencies, its strategic positioning in the market as well as the various choices it have in its existing situation. For the next 5 years mainly company has to identify its areas of operations and production, marketing and distribution strategies, financial planning and prudence, expansion strategies, and careful evaluation of various choices it have to formulate its competition strategies to remain successful sewing manufacturing machine company. Strategies might be regarded as suitable from the point of view of: existing opportunities in the environment and avoiding threats; capitalizing on organizations strengths and avoiding or remedying weaknesses; addressing exceptions.
The general environment of western market for sewing machine is becoming saturated and shrinking. Even industrial demands are going down and therefore professional and domestic sewing machine market seeing a slump. Therefore VSM group has an opportunity to expand in East European market and