Prepare a summary of the resource audit of MANGO and Identify the key resources (tangible and intangible) that may be linked to competitive advantages - Essay Example

Mango Mango, a second- largest exporter in the Spanish textile sector, the company has its stores in more than hundred countries, gives a job to morethan ten thousand employees worldwide and produces hundred million articles every year. Over the last decade, Mango has experienced the sustainable growth, because of its business model. However, at a time of significant consumer crisis it should think over the improvement, so its model to continue to be suitable for the future. Its directors assure that the company is well- organized and is prepared internally to any market surprises.

Moreover, they recognize that there is a need in solid business base and the new management model to continue competing on the global level. A company runs the entire process beginning from the manufacturing and ending commercialization of its products. Its main producers are China, Morocco, Turkey and Vietnam. The company undertakes quality control of all the levels of producing their products, sustaining high quality brand with a little but higher prices, however, offering a more developed and better finished product at all levels.

Since a Mango business considers itself as a boutique, it has its team of window- dressers, coordinators and supervisors who ensure all stores to share the same atmosphere and image. In order to be achievement- oriented and be able to meet the needs of the biggest audience of consumers, the company should think over new strategies and implementation of new ways to increase its productivity and enhance the number of customers, at the same time to expand the brand in to the new markets and sustain best measures of quality product within the existing markets.

The best in deciding which strategy to choose, is to diversify one’s company funds and start to undertake the resources audit in the company. This will ensure the assessment of the achievement within the financial strategy. Thus, the main components for the audit of resources is to figure out if people are well organized in obtaining the income- generating activity. These people should possess all necessary skills and experience, such as in marketing, fundraising and have enough saleable skills.

Besides, the company should consider its money that are able for the investment in the activities, such as adapting stores to let. Along with these resources, the company should have enough capacity to respond to requests. These activities include training and offering consultancy both to the company employees and to the consumers. In order to obtain recognition, the company should contact with the famous people who have influence within the business communities. As the marketing tools, the company can choose the credibility of the organization.

Thus, Mango is the well- known brand with the high quality of products, which puts a company on one of the first places of the world companies. To be ahead of its main rivals, a company should achieve a competitive advantage by strengthening and positioning it better within the business environment. For that purpose, the company should identify the key resources that would bring considerable advantage of the company over its main competitors. Mango value chain Basic activities: the production system The design Manufacturing Distribution Commercialization Support activities: The logistic system The IT system The human resources The internationalization (through the franchise) Marketing and communication Development of e- business and strategies toward new niche markets Once the basic and support activities are identified, it is possible for Mango to analyze the potential resources for cost efficiency.

Thus, Mango’s production system, which is executed by the diversity of workforce across the globe allows the company to establish long- lasting relationship with different suppliers, thus Production system Performed through different countries Establishment of long- lasting relationship and constant dialogue with suppliers An advantage over Mango’s rivals and cost efficiency for the company The company also runs the policy of direct and personal contact with the production centers to closer cooperation and understanding of different aspects of the manufacturing process and business in general.

This allows Mango to identity the potential sources of value creation. Sources of value creation Production control Monitoring and support program: gives the suppliers access to the information over the general processes of the planning and specifications of the company’s models Logistic centers: operate globally from Europe, Asia and United States. Constant communication: allows the head office to track the necessary changes in the marketplace Adoption of innovations into the manufacturing of its products: the development of new technology platforms that would enable it manage the whole complex, from design to sales and all completely automatically.

Consumer- oriented: the team of experts and professionals with great motivation, flexible and capable in adapting to different changes: Unique opportunities for the employees Shared information between the distribution centers: ensures proper work of logistic system Allows Mango to refill the stock according to the rate of demand within the certain market Reduction of the delivery time and making the distribution process faster, reduction of costs for transportation, reduction costs for infrastructure that increases the quantity of merchandise Strong collaboration makes Mango to be closer to the maximum number of its clients Offers bonuses for the structural personnel, reward them based on the performance development, and for the employees in stores, such benefits are in fixed salaries plus a variable that is usually based on the turnover of the store Competitive advantage by movement in merchandise Constant information on the stock and adjust changes to their franchise through computer applications Creates valuable generation for its products Satisfaction of consumer needs Internationalization through the franchise The latest project of the company is concentrated on creation of a global distribution center in Barcelona, Spain.

The company follows the strategy of speed, information and technology in providing logistic of its goods. Mango is now setting the time market for one item in three to four months, while its competitor Zara, which has the shortest in the sector, because of the fast design, manufacture and distribution systems. European market is the natural target of Mango and it is from Europe the company achieves the most success. However, Mango also adapts its products to the cultural habits and preferences in Arabic countries, as well as in China and Japan.

As long as Mango shows its commitment to the internet sales, launching the online store and expands its activities on the wider areas, it evidences that the company wants to achieve more not only in financial sphere, but it also values the generation whom they create their products for. These activities after all are the essential competitive advantages of the company. Since there is nothing stable in the modern world and with the development of technologies, considerable changes in the population of different countries and their needs and demands, Mango should keep abreast of the modern innovations, events and changes in tastes of people to be able to satisfy their needs and conquer the competitors.

References Ricart, J. & Kordecka, I. 2010, Mango, Popularizing Fashion, A case for learning, IESE Publishing