The following paper will concentrate on the strategic analyses of company Raumluft24, a family owned small company. It will only cover a small and short SWOT analysis to not exceed the paper frame. How can a change in strategy effect Raumluft24 and speed up the development and growth of the company? Which problems must be eliminated?
To suggest some changes in strategy for Company Raumluft24, a summary of the strategic capability which might have an impact on the strategic development is necessary, as well as a summary of the key issues from the surroundings of the company. This summary can be done with a SWOT analysis where the results can be used as a basis for the implementation of strategic options and changes, to find out the strengths and weaknesses of Company Raumluft24.
At a glance
- Grade: 2.0 (1.0 is the best grade)
- Applies a SWOT analysis to Raumluft24’s strategic development
Table of Contents
1 Introduction
2 The problem of future development
3 The cause for the stagnancy in future development
4 The solution for Company Raumluft24 or a change in strategy
5 Conclusion
Objectives and Topics
This paper examines the strategic development of Raumluft24, a family-owned small company. It asks how a change in strategy could accelerate the company’s development and growth, and which problems need to be addressed.
- The company’s history and changing product portfolio
- Competition and the growth of online sales
- Weather-dependent demand and inventory planning
- Generational differences in management
- SWOT analysis and strategic options
- Advertising, customer service and supplier relationships
Excerpt from the Book
1 Introduction
After several years of small growth, the company reached a size where working from the living room was not possible anymore. This was also the time, where online sales started to grow and a change in distribution channels were necessary.
The first version of a website was established – however compared to today’s technology it was just a try as ordering online wasn’t possible, just filling out requests and asking for more information material.
The customer base was growing and the personal contact to customers was lost over the time. Telephone marketing and sales were taking over the position of personal contact and face to face sales.
1998 Mr. Krack rented an office building close to his home in Barsinghausen, as well as a small warehouse for some units and repairs.
The number of customer was growing but also the competition on the German market, as more and more companies were showing up and trying to sell humidifier, dehumidifier and air purifier.
In the year 2000 another office worker was employed after the former decided to leave, which besides one technician, one facility manager and one cleaning lady were the only staff hired and working in the company.
During this years the product portfolio didn’t change much, until Mr. Krack discovered 2005 in Milan on the Mostra Convegno (biggest exhibition in Europe for ventilation, heating, cooling, humidifying and dehumidifying) a new supplier for mobile air conditioner and split unit systems – Olimpia Splendid, an Italian based company.
As the air conditioner business in Germany was still in their baby shoes, there was not much competition on the market for several years.
2010 the daughter of Mr. Krack, Vanessa joined the company. A real online store was established shortly after and the name was changed to Raumluft24.
Vanessa recognized, that a company name that long was hardly possible to remember in Germany, but impossible to remember and understand overseas and in the rest of Europe.
The competition was growing on the German and international market in the segments of dehumidifier, humidifier and air purifier.
Therefore, the decision was taken, to eliminate these products from the product portfolio entirely and stick to the sales of air conditioner.
Chapter Summaries
1 Introduction: The introduction presents the research questions and traces Raumluft24’s history, product range and sales channels.
2 The problem of future development: This chapter discusses competition, weather-dependent sales and the long service life of the company’s products.
3 The cause for the stagnancy in future development: The author examines competitive pressure, inventory planning, advertising costs and generational conflict as challenges to development.
4 The solution for Company Raumluft24 or a change in strategy: A SWOT analysis provides a basis for considering changes to marketing, customer service, product offerings, supplier relationships and management.
5 Conclusion: The conclusion brings together the proposed strategic changes and considers future opportunities for the company.
Keywords
strategic management, family-owned business, small company, Raumluft24, SWOT analysis, air conditioners, Innova 2.0, online sales, competition, advertising costs, inventory planning, generational conflict, customer service
Frequently Asked Questions
What is this paper about?
It examines the strategic development of Raumluft24, a family-owned small company selling air conditioners.
What are the central topics?
The paper addresses competition, weather-dependent demand, online advertising, inventory, management succession and customer service.
What is the main research question?
The author asks how a change in strategy could accelerate the company’s development and growth, and which problems must be eliminated.
What method does the paper use?
The paper uses a SWOT analysis of Raumluft24 as a basis for considering strategic options and changes.
What does the main body cover?
It examines obstacles to future development and discusses potential changes to the company’s strategy and operations.
Which keywords characterize the paper?
Key terms include strategic management, family-owned business, SWOT analysis, online sales, inventory planning and customer service.
What role does Innova 2.0 play in the case?
Innova 2.0 is the air conditioner product line for which Raumluft24 obtained exclusive sales rights in Germany.
How does the paper address weather-dependent demand?
It considers the challenges of ordering stock in advance and discusses expanding the product range to include alternative heating systems.
- Arbeit zitieren
- Gesa Vanessa Krack (Autor:in), 2018, Reasons for an IPO. A Term paper in International Finance & Accounting, München, GRIN Verlag, https://www.grin.com/document/1189448
