Cutco Case Analysis free essay sample

CUTCO Corporation must implement a long-range growth strategy by selecting and focusing on a growth driver as well as a strategic marketing channel for the next ten years. Alternative Evaluation 1. Acquiring a cutlery manufacturing company Cost = $10-15 million a. Advantage: Gain additional plant capacity required for growth expansion b. Disadvantage: The acquisition would divert attention away from the companys primary activities. 2. Expansion of Internet recruiting and new Internet technologies Cost = $5-10 million c. Advantage: Improving recruiting procedures and gaining knowledge of new internet technologies d. Disadvantage: Cost of hiring and training additional sales force 3. Expanding brand recognition and preference through increasing through public relations exposure Cost = $1-2 million f. Disadvantage: 4. Reenergizing major international marketing efforts g. Advantage: . Disadvantage: Substantial financial and personnel resources utilized 5. Expanding supplemental sales channels (catalogs and Internet sales) Cost = $3 million i. Advantage: High potential to generate increased profits J. Disadvantage: Cannibalization of revenue produced from college students 6. We will write a custom essay sample on Cutco Case Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Expanding retail sales channel cost = $100,000 k. Advantage: High potential of increasing revenues threefold l. Disadvantage: Potential to devastate sales force, develop new skill set and core competencies Recommendation CUTCO Corporation should invest additional resources in Internet recruiting measures of college students. This method has proven to work in the past and the company could utilize social networking websites such as Facebook, Twitter, and LinkedIn in order to gain new prospects. I do not feel that it is feasible to spend additional resources in overseas markets at the current time. The cost is too great and several past experiences have not been successful in markets abroad. I also feel that an acquisition of an additional company to increase product capacity would also be too great of a cost. The pilot retail store has a huge market potential in its current location and should be expanded into other markets. (Refer to Appendix for analysis)