The paper "Strategic Management - Fielmann AG" is a great example of a management case study. Fielmann AG is a Germany operated company that deals in the optics of eyewear. The company sells its products externally using its business branches in countries such as Italy, Netherlands, Poland, Austria, and Switzerland among many others. The company has about 695 branches in Europe. The stocks of the company are listed in the German MDAX index and they are also listed in the regional HASPAX index in the Northern German. The business operates like a retailing business. The business has about 586 stores in Germany with a market share of 52% in the industry. The sales market share of the company is around 21%, which brands the business as the main market leader in Germany in the retailing of optical chains in eyewear (Bloomberg, 2017). The founder of the company is Gunther Fielmann, who is an approved master of the optometrist in the state of Germany.
He is the main/ and major shareholder in the company. The company operates in the industry of healthcare through retailing, it is traded as FWB or FIE.
The main services it has included the ophthalmic opticians, eyewear prescription, and retailing of sunglasses. The report below evaluates the corporate strategy of the company, presents the SWOT analysis and relevant financial ratios of the business. Corporate Strategy of Business The corporate strategy of a company can be presented as an expanding or reducing company scope, and an evaluating corporate strategy. Business Strategy (VIDEO) The expanding scope presents that the concentration of the business can be in a single industry. That is; it focuses on one market industry. Fielmann AG focuses on the optics industry alone, where it retails the eyewear products in the industry.
Other characteristics of an expanding company scope perceived in the company are expanding the reach of the company in many markets. The evaluating corporate strategy involves evaluating the corporate level of the organization, the business and the functional levels of strategy. Thus, the corporate strategy helps identify the industry or other industries that it should participate in to maximize the long-run profitability’ s (FMEAE, 2017). Fielmann AG is the main shareholder with over 50% shares in the industry. The optics industry in Germany is significantly successful and profitable, thus, using all of its assets in the single industry leads to increase in expertise in the market including identifying the market needs and developing solutions to meet the needs. For instance, in 2014, the revenue generated from the industry in Germany was € 51, 63 billion.
This was with a 14% increase from the year 2013. The demand for optical products from German is high, not only in German but in other countries as well. The business strategy is narrow in terms of product as it concentrates on one product, the eyewear products.
However, in terms of geographical broadness, the business operates in many countries, which also increases its profits. Thus, the business strategy is narrow in product and broad in geographical nature. Global Strategy of Fielmann AG EVALUATION: PORTERS FIVE Competition in the industry: In the industry businesses compete intensely. However, they cannot compete with the Fielmann AG since it dominates the industry and directs the pricing in the industry. Thus, competition in the industry through intense among other small businesses does not compete with Fielmann. Thus, it dominates the market.