The Flip Factory is an organization set up by a sole owner with an intention to improve the gymnastic business and imaginatively furnish the purchasers with assortment. The organization offers an assortment of gymnastic projects that are one of a kind, clients situated and non-focused. Traviss, the organizer and the official chief of Flip Factory, built up the organization dependent on her enthusiasm and with an intention to give a one-layered gymnastic framework which involved both the recreational gymnastic instead of the two-layered framework, with the aggressive and recreational levels, that is a normal for the vast majority of other gymnastic clubs.
The Industry Flip Factory is as of now in a focused industry involving major and chronicled gymnastic clubs. For the majority of the contenders, the administrations offered go from the aggressive dimension gymnastic where Olympians and independent acrobatic contend and the recreational dimension gymnastic that is essentially put aside for non-focused occasions. Flip Factory, be that as it may, gives just the non-aggressive tumbling.
Flip Factory utilized specialization as the business methodology to rival different players in the business. Having been engaged with the business for a long time, Traviss comprehended that there was an open door in recreational tumbling. She comprehended that such a large number of the current aerobatic concentrated more on aggressive acrobatic. This region was likewise packed with such a significant number of mentors. She likewise had seen that albeit calm, there were an expansive number of individuals who did not have any desire to get engaged with focused acrobatic.
These individuals were the recreational aerobatic who the current clubs denied a not too bad condition. Flip Factory was consequently settled to fill this void and give recreational gymnastic at an expert dimension in a specific unit with offices and staff. This specialization made Flip Factory the main club offering the one-level gymnastic framework. Under this, the organization had the capacity to draw in more clients by isolating its administrations to cover youth, teenagers and grown-up projects, pre-school programs and the gymnastic appointments. Likewise, the organization is centered on guaranteeing the security of the considerable number of clients through limiting the dangers presented by nature and the gear just as safeguarding to cover mishaps and dangers.
Few of the key issues of Flip Factory are:
This analysis for Flip Factory identified the four main categories which helps the organization to gain a competitive advantage. The father of this theory suggests that company must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company.
Valuable- Value of the resource or capability allows the firm to meet a market demand or protect the firm from market uncertainties. Flip plant offered administrations to kids who needed to keep on inclination tested through abnormal state, non-focused tumbling programs. Furthermore, Flip Factory offered a chance to previous aggressive competitors who needed a test outside the focused field and an imaginative outlet for the abilities they had sharpened.
Rare- After finding if the resource or capability is valuable, is it scarce relative to demand? Or, is it widely possessed by most competitors? The resources of the Flip Factory Inc Company that are not used by any other company are known as rare. The talent management of Flip factory is not rare but the track record of leadership and their presence in local and global market is very rare.
Costly to Imitate or Non-Substitutable- the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. For this case, Flip factories talent management can be easily inimitable but their strategies in both local and global; market can’t be copied by other competitors in the market.
Exploitable- assets, itself, can’t give focal points to association until it is composed and adventure to do as such. Flip Factory must compose its administration frameworks, procedures, arrangements and systems to completely use the asset’s capability to be important, uncommon and exorbitant to copy. It is one of the most diversified companies in its industry both in local and global market. However also to very high extent it has ability to attract new talents and new customers.
To provide Flip Factory’s external environment, Michael Porter’s Five Forces analysis is used. (Grant, Jordan, & Walsh, Industry Analysis, 2015)
Porter’s Five Forces Framework applied to Flip Factory:
Threat of new entrants: As a high profit industry, many new entrants will try to enter into this market. Already there are some new gymnastics club who has entered the market to compete like: Breathe Parkour, Altadore Gymnastics club and Calgary Gymnastics Centre. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, the risk is high.
Competition from substitutes: In general quality of this power is: Low to medium. In the gymnastics business most of them focuses on working either as a competitive centre or as a recreational centre. It is a hard to coordinate the uniqueness that Flip Factory offers towards its different clients through its administration advertising. Flip Factory offered benefits in three center territories: 1) youth, teen and adult programs 2) preschool projects and 3) Bookings. For other existing specialist co-ops, changing their business procedure coordinating their administration with Flip Factory would be a troublesome assignment.
Degree of industry rivalry: In the market, there are some settled competitors and some of them are worldwide, with a greater capital value. One such foundation is Gymboree with in excess of 550 areas in 30 nations. It’s easy to bring innovation in this industry as every other company knows about the fault and development of other companies. This is the benefit for not being the first mover advantage in this industry. Contention between built up contenders is savage, along these lines, in general quality of this power: High.
Bargaining power of suppliers: This reflects to the provider’s capacity of expanding and diminishing costs. On the off chance that there are not many choices of provider accessible, this will danger the organization and it would need to buy its crude material in provider’s terms.
Flip Factory has their own target market where they are least bothered about winning over the suppliers because the already have enough equipment to satisfy their customers and also they are now concentrating on making available of new other products for the existing customer and also new customers. So the strength of the force: low to moderate.
Bargaining power of buyers: It manages the capacity of clients to bring down the costs. It essentially comprises the significance of a client and the dimension of expense if a client will change starting with one item then onto the next. The purchaser control is high if there are such a large number of options accessible. Also, the purchaser control is low if there are lesser choices of options and exchanging.
Resources VALUE RARE IMITATION&NON-SUBSTITITABLE Organizational Competence to EXPLOIT Competitive Advantage
Talent to Manage Regulatory and Legal Obligations Yes No Can be imitated by competitors Yes Not critical factor
Track Record of Leadership Team Yes Yes Can’t be imitated by competitors Yes Providing Strong Competitive Advantage
Global and Local Presence Yes, cycles Yes Can be imitated by competitors Yes, it is one of the most diversified companies in its industry Providing Strong Competitive Advantage
Access to Cheap Capital Yes No Can be imitated by competitors Not been totally exploited Not significant in creating competitive advantage
Ability to Attract Talent in Various Local & Global Markets Yes, Gymnastics Flip strategy is built on successful innovation and localization of products Yes, as talent is critical to firm’s growth Difficult to imitate To a large extent yes Providing Strong Competitive Advantage
Brand awareness Yes Yes, Gymnastics Flip has one of the leading brand in the industry No Gymnastics Flip has utilized its leading brand position in various segments Sustainable Competitive Advantage
Pricing Strategies Yes No Pricing strategies are regularly imitated in the industry Yes, firm has a pricing analytics engine Temporary Competitive Advantage
Financial analysis on Flip Factory Inc
In view of the financial data given, we can look at the arrival on value to make sense of the productivity of Flip Factory between the years 2011-2013 For the year 2011, Flip Factory lost $91 and $9 on investor’s equity. Thus, the ROE for 2011 is: – 10.1%. For the year 2012, Flip Factory announced an overall gain of $25,948 and $25,957 on investor’s value. Hence, the ROE for 2012 is: 0.99%. For the year 2013, Flip Factory revealed a net gain of $16,222 and an investor’s value of $42,179. So, the ROE for 2013 is: 0.38%
So we have mentioned before that there are some key issues of this case which started whether Flip factory should expand their business or to sustain with the existing management. The result is very obvious that it totally depends on what type of action Flip Factory will take in future.
Traviss has the wonderful ability to keep good hold of her company’s system which benefited her fantastically. It helped her to grab into all the solid decisions accordingly she had the capacity to move into the new area. With her ability, Flip Factory is now capable to accumulate a group of mentors who are universally known. They also can do some market survey to know what are the customers depend or what are their preferences from this industry. From my point of view I strongly feel that they should have same office like the present one in all the areas they have. Or else they can expand globally which is also a good strategy for them because worldwide gymnastics is evolving day by day. In that case they just need to do some good research to maintain their profitability worldwide. Flip Factory has managed to have highly skilled instructors who are enough to bring new offerings to the company. So proper counseling with the instructors will bring the best results for the company. Flip Factory highly depends on its investors in case of financing and other financial matters. They can also now rely on the inside funding like coaching the students and renting the space.
For Flip Factory Inc, based on the, Porter Five Forces Analysis, and VRINE analysis, the recommendations and action plan are as follows:
From the shareholders perspective, Flip Factory is not financially stable because of the huge fluctuation of ROE. So in this situation the company needs to improve their ROE. They can initially borrow money but in the near future they need to take care of not having any debt. Flip factory’s profit margin is declining over the years. Thus the major thing they need to focus is to expand worldwide and try to improve their sales revenue. Flip factory needs to reduce labor and operating cost and needs to improve developing new programs based on market demand. Flip Factory should analyze and take information from VRINE and Porter’s 5 forces model to identify opportunities. They also should expand the value creating activities within the value chain. To get the desired levels to result from the target market they have to focus on improving corporate and business level strategy.
Continuous innovation is now the key of success I recommend to Flip Factory.
Improving operations checklist can be easier way for Flip Factory to list out what lever, knobs and handles needs to prioritize one by one. They can maintain a timeline to achieve those objectives. Branding of the place and name is another important thing to consider. A name of Flip Factory should be enough for everyone. In one word Flip Factory should dominate the market, for that they need to have some better plan to do advertising Program planning worksheet maintaining can be helpful for them. From which it will be easier for them to have detail look of their upcoming projects. Flip Factory can start opening customer service for both globally and locally. This will help them to get connected with the customer and also Flip Factory will get continuous queries, complaints, feedbacks to polish their business much better than before.
Other important Recommendation for Flip Factory is to merge some components which are given below
It is very important for a company to have some alternative plans when the recommendation or other plan doesn’t work as planned. Flip Factory has very limited choices to make in this period of time. So they need to create brand image so that they can improve their market share prices. Flip Factory should involve in charity, road show, more campaigning, and also need to build concern in people about health issues so that they can make their mind to join gymnastics.
Also to expand in business globally they can attract customers by reaching them through proper advertising that includes their culture and values which emotionally make customer think about Flip Factory.
They can also reconsider evaluating their Mission, Vision and goals because when they will be starting to explore the world, they need more specific mission and vision.
We cannot close the case analysis by giving recommendation only. All these recommendations need a practical plan to implement in the organization. An organization is fully successful when they can implement their planned objectives. A better framework of implementation shows the proposed plan and how the resources of the company will use them to achieve organizational goal.
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