Vsm Group Strategy Essay

4789 Words Aug 22nd, 2008 20 Pages
I. Introduction
VSM Group manufactures markets and sells consumer sewing machines, holds a leading position in the medium to high-end segments of household sewing machines on the world market. After redirection, VSM had carried out a set of strategies to pull itself from inferior position into an enjoyable place. In this report, the strategic position of VSM in 1997 will be analyzed first, along with three divisions, the environment, strategic capability, expectations and purposes. Strategic options will be identified and evaluated based on business-level strategies and corporate-level strategies. Finally, some feasible strategies which will match VSM’s situation better will be recommended.

II. Strategic Position
The strategic
…show more content…
A market leader in the medium to high-end segments of household market.
Product range Domestic sewing machines Full product range Domestic sewing machines
Advanced technologies Touch-screen controls Entire range of computer-controlled machines, including top-of-the-line embroidery models. Top model accepted embroidery file developed for other brands, including VSM. Produce software of embroidery
Product development Continued to produce innovative products Had been less aggressive after entering the embroidery segment. Continued to innovate products
Financial advantages Low-cost production facilities Low-cost production facilities.
Prices undercut VSM by 20-30 per cent Low-cost production facilities

According to the comparison of the characteristics of these large manufacturers, the innovation of products and development of specialized technology should be the most crucial elements which could determine the success in this competitive industry. Meanwhile, the low-cost production facilities can become another aggressive weapon to win the success. However, VSM had none notable advantage in these fields, thus the organization undoubtedly had to face fierce attack from its competitors with

Related Documents