Newstar Marine & Scooter Harvard Case Solution & Analysis

Newstar Marine & Scooter Case Study Solution

Opportunities

With the increasing trend of using technologies in the business model NMS may consider E-commerce business model to increase its customers and to expand in the market. Also NMS may consider expanding its business in the current location as the company still has many options to introduce such products in the market which gives them a competitive edge over others. Further Wiechert may also avail this opportunity to sale pontoon boats as no one in the Atlantic Canada is dealing in such boats. This would be a great opportunity to be a first one to introduce these boats.

• E-commerce business model.
• Expand the business in current location.
• Introduction of pontoon boats.

Threats

The inefficient management of NMS is a threat for the business as this will eventually affects the position of the company in the market as weak management lead to the inefficient use of resources. Further the lack of planning of the owners related to the business is leading towards the poor quality product and limited facility.

• Inefficient management
• Lack of planning
• Inefficient use of resources
• No well-defined Growth plan

Identification and Analysis of Strategic Alternatives

There are few strategic alternatives available which NMS could consider to maintain its competitive position in the market and to expand its business for the further development of the company.

Alternative-1:Switch to another Location

Switching business to another location closer to the city would be beneficial for the customers as the store would be accessible to the customers and in the long run, this will benefit the company. Along with it switching to another location will give an opportunity to the NMS to be a Honda dealer too which will increase the credibility of the company But switching to an entire new location requires a lot of research and funds to progress in an entire new location. Also the infra-structure required by NMS (i.e. indoor showroom with high ceilings) will be costly.

Pros:

• Honda dealership
• Store accessible to the customers
• Growth in the long run
• Business operations will start within two months of switching

Cons:

• Increase in cost
• Immediate funds required
• Research cost

Alternative-2: Expand the Business within the Current Location

The second alternative could be to expand in the current business location as the current location of the business is ideal for the businesses like NMS and plan the construction in such a way that it would not affect much of the business operation. As expanding in the current location would not cost much and the company is well known in the current location which will also benefit in a way that it doesn’t need to research about the location. But also the fact cannot be ignored that the process of expanding in the current location will take about 6 months, which will be frustrating for the customers as well to shop conveniently.

Pros:

• Ideal location
• Less expansion cost
• Less research cost

Cons:

• Construction will take up to 6 months
• Need a storage unit to keep operating
• Fear of loosing customers.

Alternative-3: Sell the Business

The last alternative could be to sell the business as the owners are also considering the option to harvest the investment. The fundamental goal of both the owners was to have something for their retirement but considering the above fact the company is earning great revenues and with a few investments and proper planning the NMS can achieve huge success in the market. Already the company has brand name which is recognized among the customers and the market.

Pros:

• No further investment
• Hard cash
• Can harvest investment

Cons:

• Losing market share
• no great revenues

Recommendations

Thus, from the above situational analysis and considering all the alternatives it is recommended that NMS should expand its business in the current location and further develop its business. But first it is recommended to have well-defined structure and efficient management to run its operations to grow in the market. Expanding its business in the current location will benefit in the long run as the current ideal location favors the business and also it is less costly o expand in its current location rather than in the entire new location.

Appendices

Appendix-1 SITUATIONAL ANALYSIS

Appendix-2: SWOT ANALYSIS OF NMS

Appendix-3: Identification and Analysis of Strategic Alternatives

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