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Management Strategy

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You are the CEO of a low tech, high volume, and low margin industrial cleaning supplies (chemicals) business. You currently design your own products in house but employ third party manufacturing. You also utilize third party logistics to warehouse and distribute your products. You have numerous but small competitors. Many manufacture/distribute their own products. Your entire market base is located in the Mid-West of the United States. You plan is to expand into the rest of the United States and possibly Canada and Mexico (currently no competition). What would you do to drive growth while not compromising margins?

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Solution Summary

The management strategies to drive growth while not compromising margins is determined.

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Expansion in New Markets

Planning for expansion in new markets (rest of United States, Canada and Mexico) is very important for sustained growth of the company. This is a transition for the company from being low-scale to high scale supplier. It requires close watch on operational capabilities along with coordination with marketing activities to make sure that the market expansion strategy is viable and can be actually implemented. The company first needs to:
• Have knowledge of new markets
• Develop insights from target customers
• Understand sales process and factors impacting ...

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