The Impact of the Components of the External Environment on Magnolia Brands’ Ability to Realize their Vision
Generally, the aspects external environment has the ability to influence the Magnolia brand. For instance, competition from other businesses in the sector might make Magnolia lose customers. In addition, the political stability in the area has the potential of making the brand expand its operations and become successful in the market. The social nature of the people around the place and their history with the brand can enhance brand loyalty thus enabling the business to effective.
Magnolia Brands’ Major Competitors
Based on the case study, the major competitor of Magnolia brands includes Target. The company offers the Hearth and Hand product line that deals with exclusive homes. The services and products provided by Target are priced below $30 and the items are available in a large collection.
Other Factors Affecting the Growth of Magnolia Brands
Generally, the growth of Magnolia brands is influenced by customer loyalty. Most of the clients who watched the Fixer Upper series are motivated to purchase the products from the company. Furthermore, the aspect of social responsibility whereby Chip and Joanna educate people through sharing business strategies motivates the consumers. The leadership style is making the clients visit the facilities for instance, at Magnolia Table, customers are treated with care which makes them able to wait for over two hours before receiving services.
Internal Factors that Must be Considered
The key internal factors that Magnolia management should consider include the value system that deals with the ethics of the business, aligning objectives with company missions, organization structure, and corporate culture. Furthermore, the quality of human resources must be considered to ensure the employees recruited are able to work towards achieving the mission and vision.
Magnolia Brands’ Strengths and Weaknesses
The Magnolia provides family-designed properties and accommodates the needs of society. It has a reputation from the Fixer Upper series which made it familiar to the people (Brunson & Reed, n.d.). It offers various services within the same location, and it preserves the history of the Waco area. Its weaknesses include the inability to incorporate current technology into its businesses, and changing the name Elite Café to Magnolia.
The Way the New Show Represents an Opportunity in the Home Remodeling Industry
The Behind the Design series is aimed at showing the viewers major secrets that the company has been using to model its houses. Through the show, the home remodeling industry will gain new techniques that can be used to structure the rooms to meet the customers’ needs.
Challenges or Threats of Magnolia Brand
The threat that is more likely to face Magnolia is new entrants into the market. Through the shows, major companies have acquired the necessary knowledge and thus can opt to join the sector to enhance competition. Similarly, due to limited space due to congestion in the area, Magnolia may encounter lawsuits demanding compensation from affected citizens.
Measurements to Determine Success
The success can be determined by examining the view count and TV run date and time.
Feasibility of the Ability of Magnolia Brands to Continue to be Successful
Based on the case study, Magnolia brands have a high chance of being successful in the market. Chip and Joanna have invested in different sectors which increases its market coverage. In addition, their TV show series is a form of advertisement which makes the company to be known in the region.
Reference
Brunson, R. R., & Reed, M. M. (n.d.). Fixer upper: Expanding the Magnolia brand. Case Study.