Assignment 1: Strategic RepositioningWhy do chefs buy Hobart for their kitchens? Chefs buy Hobart for their kitchen because of its developed solid reputation in high quality as well as extremely reliable products. Initially, Hobart possessed a broad coverage of industry and in its product categories with a more respected service network. In addition, Hobart products were less expensive competing products. However, due to improved customer relationship management and the sustained food safety, it is more reliable to chefs. What was the value proposition before the “Solid Equipment, Sound Advice” program? How did it change? The value proposition of Hobart before the achievement of Solid Equipment and Sound Advice programs concerned the production of less expensive competing products made overseas.
Although most of the customers continued to buy the Hobart products, they threaten growing at a high rate. It also became difficult to create advertising and the trade show material that could assist in breaking out of the clutter. The value position changed after Hobart sought to launch a different customer-facing brand that was perceived to be the thought leader within the industry and not simply the product leader. What functional strategies did Hobart pursue? Hobart aimed at offering solutions to daily issues its customers face within their businesses, for instance, acquiring, training as well as retaining the good workers.
Hobart also focused on keeping their food safe and making enticing dining experiences available. There was elimination of costs, reduction of shrinkage and the enhancement of same-sales growth. In order to effectively meet the above focused areas, Hobart firm systematically marshaled into knowledge in pursuit of the above functional strategies. Whether or not a wise decision and the ideal approach to create better support toward a quality position? Soaking up of the resources by the new program that led to reduced effort in communicating the new product innovation was not a wise decision.
This is because resources and communication are very significant in implementing the new product innovations, for instance, making the product adverts on sage online and through magazine requires more resources. The changed approach to the new product releases through the emphasized product value to the customer in dealing with the key business issues, for example, rather than emphasizing on the specific features such as recessed nozzles on Hobart TurboWash, the firm made communications on how it easily carried out the task of scrubbing pots and pans.
This resulted into the creation of a happier restaurant as well as food service employees. How could competitors position themselves against the Hobart’s strategic position? What is the best criterion in developing such strategic position? The competitors could create more advertising and trade show material to break out the clutter issues that were faced by Hobart’s customers. Furthermore, the ability of competitors to produce breakthrough products to draw the attention of customers would assist them in positioning against Hobart positioning.
This is because Hobart was not capable of creating neither any advert nor the trade show material. In addition, the generation of breakthrough products which could attract the attention of customers was very difficult for Hobart.