Question

Cedarmont Clothing Limited is rapidly losing its market share to more aggressive
competitors and its CEO want to turnaround the fortunes of the company. As a
strategic management consultant, describe turnaround strategy and explain three
ways that this strategy can be employed.

Answer 1

The three turnaround strategies that the company can employ in order to regain its lost market share and gain competitive advantage are:

- Lowering the prices- Dropping the product prices can attract the customers lost to competitors effectively. As the customers have been using our product and trust the quality, they will no doubt it with the decreasing prices. Hence gaming customers by lowering prices to regain the customers can be fruitful. This will increase the market share by increasing economies of scale through the per-unit margin of the product sales will decrease. That will have to be increased through other methods then.

- Promotion methods- Adapting new advertising and promotion methods can also be a way to gain customers and increase market share. This may include increasing the advertising budget and promoting the brand through new channels to reach more potential customers and attract lost customers. Understanding what made the competitors gain the customers and focusing on aspects that can regain them can help in effective and productive promotion approaches.

- Updating product offering- Upgrading the current products and adding new products in the product line that can support the current products can also attract customers and gain market share. Offering something better than what you had or something better than what the competitors are having can help in gaining a competitive advantage. ALso making the current product available through various mediums of purchase and payment can be beneficial to increase market share.