Introduction
P’konilo was established in the year 2004, at the Dania Beach in Florida, by two fathers who had a passion to create great products in collaboration with other global designers, families as well as friends. Over the years the company has continued to create play products/ items that are distributions in regions all over the world.
Internal Analysis
The specially designed toys, décor, play furnishings as well as art supplies target children of every age. The company aims at providing children with smart products and ways through which they can improve their play at their homes and in turn develop mentally, physically as well as socially.
Other than improving play at our homes, the company is able to improve its margin sales through its integrations as well as complementary associations through its business of the various growing products. The company faces competition from other companies that include Furniture Brand International, Lay Z Boy and Ashley Furniture among others. The furniture industry has been identified as the fastest developing sector. This sector faces stiff competition from foreign companies who sell their products at a lower price. The company identifies interior designers as well as niche- product designers as being their greatest competitors.
P’konilo creates genuine business opportunities for all its stakeholders. Play is an essential part of a child’s life as it is through ply that children learn, work and grow. In this case parents are always willing to enhance play in their children as a way of promoting healthy growth, learning and development and are therefore willing to purchase more play items for their children
External Analysis
P’konilo has the ability of competing with other similar businesses in the industry through its various strategies that includes identifying the various strategies that their competitors are undertaking to be able to stay ahead. It is by identifying the strategies of each of these companies that P’konilo will be able to develop ways through which they will counteract each of the strategy developed by each competing industry. The company relies on speed and on innovation to be able to stay ahead of its competitors. They establish their various brands within the high end segments down to the more highly competitive markets.
The company has a good team of stake holders and partners. Antonio Turco- Rivers who is the co founder as well as the sales and operations manager has previously launched 2 major technological ventures, has immense experience in consultancy, managerial as well as investment firms making him a proven sales, manager and entrepreneur professional. Another partner, Joseph Schneider who is the Co founder &Marketing and Product Development Manager has more than 10 years of experience in communications and marketing strategies, has actively worked as a project manager and as a part of major entrepreneurial ventures. These two individuals are also MBA holders. Another major stakeholder that make up the team include Rhode Island School of Design (RISD) whose furniture department was ranked as being the best among all other design programs all over the world. The resource required to be able to effectively carry out their planned strategies include funds as well as raw materials. An innovation of technologies is necessary for the company as a way of dealing with competitors such as the company has competitive advantage over other industries in terms of manufacturing products that are multi purpose, functional, educational, fun, safe as well as beautiful. The team is likely to make money from the identified model. Beauty, fun and safety are supreme necessities for market growth hence an essential way through which the company can increase its sales and profitability. The major differentiating benefits according to P’konilo include a more enhanced educational value, increased level of functionality and the multi purpose attribute of the company’s products. The two personnel as well as the design industry are well experienced and are therefore capable of developing working strategies effective in generating high sales, reducing production costs and increasing profitability.
Overall Potential
The overall potential for the company was assessed using the Timmons Quick Screen. The company recorded a high potential in terms of margins and markets as well as the creation and realization of value. Competitive advantage was average. The company has a level of control over her competitors in terms of product prices, customer access, retaining and satisfaction. Through its high potential; the company has the ability of making money despite the competitive risk present. With more effective control measures put in place to counteract the high competition, P’konilo creates a good and rewarding business opportunity.
Recommendation
Given the opportunity to invest in P’ konilo company, I would on the basis of the various marketing strategies they have put in place. The business is a high potential opportunity to increase markets and sales. The current strategies to enhance company growth and increased production include customer satisfaction, targeting customer profile, pricing strategy, communication strategy that involves the use of word of mouth, public relations, grass root marketing emails, direct mail and use of the media for advertisement. Another strategy is that of sales whereby the company focuses on local retailers to allow for the founders to effectively manage the established relationships while the same time to be able to carry out other assigned roles that are of priority. These laid out strategy create an opportunity for the company to expand as well as be able to increase production. The strategies are however being undertaken by their competitors and will therefore not be effective in beating their competitors.
As a way of strengthening the ever increasing competitiveness, there is need for P’ konilo to develop new and innovative product systems of information as well as process ideas, establish manufacturing and development networks and even provide new as well as advanced ICT infrastructures that will enable the creation of fast knowledge and information exchange/ dissemination. In addition to the other strategies put up by the company, this would another strategy that I would put in place. The adoption of Information Technology and information systems would be an effective way through which the company can be able to increase production, reduce the costs of production, increase the output, increase profitability as well as be above their competitors. This is a strategy that has not been fully undertaken by the competitors and hence if P’konilo adopts it, the company is likely get way ahead of its competitors (Byqrava & Zacharakis, 2007).
All businesses are characterized by a need to satisfy their customers, to meet their needs and at the same time maximize on profits. There has been a drastic change in market trends and especially in the manufacturing industry thus the need to adapt more advanced manufacturing systems there is need for agility and flexibility in the market and P’ konilo is required to rejuvenate its strength in tackling this need. Effective communication ensures there’s a good business flow as there is prompt communication between the manufacturer, suppliers and the customers. ICT can help to develop e-business for the industry in purchasing raw materials and sales to suppliers. Though the strategy has been regarded as being expensive to implement, it is effective in expanding markets, improving management, enhancing customer satisfaction and maintaining customer databases as well as improving Supply Chain Management. Such systems include the use of e-commerce, Management Information Systems, Radio frequency Identification (RFID) among others. Through Information Technology and Systems the company will be able to link all its employees, clients and stake holders. It is through the implementation of RFID for example that the company will be able to acquire and identify data as well as exchange information among members of the supply chain for sorting, tracking the various products, collection of data and analysis. The system will also be one effective way through which the company will be able to collect automated data that could in turn be useful in the augmentation of ERP systems as well as in the effective development of the various initiatives of inter organizational e commerce that include inventory management and replenishment, payment processes and tracking of documents (Hollenstein, 2002).The team should therefore focus on the use of Technology as a way of dealing with the growing competition.
References
Byqrava , W. & Zacharakis, A. (2007) Entrepreneurship. New York: John Wiley & Sons.
Hollenstein, H. (2002) Determinants of the Adoption Information and Communication Technologies. Oxford: Oxford University Press.