For the purpose of discussion, I have chosen the company Martini & Rossi since it fulfills the requirements pertaining to an industry in the mature stage. As it is effectively described by Parnell (2014a), the mature firm serves its clients with sufficient quality and quantity of a product, rarely introduces changes into its outputs, or makes them consistent with the general production standards. Martini & Rossi is familiar to its average customer for vermouth, although it manufactures sparkling wines, too. The brand continues its traditional fabrication for more than a century, thus strong associations surround the drinks (Our story, n. d.). In this view, Martini & Rossi could be considered a well-established company with an endured policy and fixed part in the market share.
Although the firm adheres to its original ideas and patterns of trade, it implements new approaches and might use new strategies. Currently, Martini & Rossi expanded their production to non-alcoholic drinks, cocktails in cans, and special collections of wines (Our products, n. d.). I suggest that this strategy be developed even further. Namely, the brand could start producing other kinds of alcoholic drinks, such as gin, for example. Its customers consume the products because they have often met this brand through advertisements or real-life while partying. Therefore, they trust the manufacturer and, consequently, would accept the novel drinks as well. In brief, the present strategy towards the enlargement of product varieties is open to widening, and my proposition is presenting other beverages.
Another strategy that could be provided is repurposing the drinks that are continuously associated with partying. In particular, noisy meetings with loud laughter and a crowd of people are images that immediately emerge when Martini is mentioned. Whatever the case, it is possible to renew these identifications. That is, advertisements may integrate an additional setting: family gatherings instead of parties. With a certain change in the design of the bottles, this hew can attract more customers, now from a different social group. Overall, the manufacturers are able to create new links between different types of production and increase their consumption rates.
Finally, a strategy concerning the development of new elements seems to be appropriate in this case. Martini & Rossi already produce umbrellas, cushions, and other items that are irrelevant to the brand but exist in order to extend its market share (Shop the collection, n. d.). What I propose is snacks that would be sold separately from the drinks. The food complementing the beverages is important to a great extent and is bought by customers virtually always. Under such circumstances, the step towards responding to environmental demands may be substantially gainful, as postulated by contingency theory (Parnell, 2014b). As I have argued, this strategy appears to be beneficial for the firm, as it interacts more with customers and leads to the emergence of different types of goods.
At any rate, even such a stable company as Martini & Rossi might suffer from instabilities arising after changes having been made. The main cause of this possibility is the inability of a CEO to clarify the company’s strategy and maintain its implementation on the proper level (Parnell, 2014b). In this situation, personality and special skills are valuable, namely, embracing novelties and representing them in an appealing view. In summary, any promising ideas of intended strategies are liable to risk if a company leader lacks openness to possible shifts and cannot display a production.
References
Our products. (n.d.). 2021, Web.
Our story. (n.d.). 2021, Web.
Parnell J. A. (2014a). “Industry Competition”. Strategic management: Theory and practice (pp. 26–51). SAGE Publications.
Parnell J. A. (2014b). “Fundamentals of Strategic Management”. Strategic management: Theory and practice (pp. xx–25). SAGE Publications.
Shop the collection. (n.d.). 2021, Web.