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FM-EL4 Case Study

The document is a report submitted by Group 2 to Mr. Buenaventura Ontuca II in partial fulfillment of the requirements for the course FM-EL 4: Venture Capital at Silliman University. The report contains the group members' names and was submitted on September 22, 2023.

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Ann Eunice Coronel
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35 views

FM-EL4 Case Study

The document is a report submitted by Group 2 to Mr. Buenaventura Ontuca II in partial fulfillment of the requirements for the course FM-EL 4: Venture Capital at Silliman University. The report contains the group members' names and was submitted on September 22, 2023.

Uploaded by

Ann Eunice Coronel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FM-EL 4 : Venture Capital

A Written Report Presented to

The Faculty of the Management Department of the

College of Business Administration of Silliman University

Dumaguete City, Philippines

In Partial Fulfillment of the Requirement of the


FM-EL 4 : VENTURE CAPITAL

Submitted By Group 2

Barlovento, Hyacinth

Campasas, Hannah

Cimafranca, Angelika

Coronel, Ann Eunice

Submitted To

MR. BUENAVENTURA ONTUCA II

September 22, 2023


Case Study 1: Dalia’s Clothing Stores

A Business Strategy Case

1. What exactly is the main problem or problems facing Josie Santos, the new president of

Dalia's Clothing Stores?

The main problem Josie Santos, the president of Dalia’s Clothing Stores is facing is

losing its market share to its competitors like Supermart which is a national department store

with a large women’s clothing line and specialized boutiques that have sprouted all over the

country’s shopping malls. These stores offer high quality clothes from overseas and are normally

sold at premium prices. There are a lot of competitors from these casual clothing industries in

recent years because of new entries from both local and foreign competitors.

2. If you are Josie Santos, what business strategy option would you adopt given the situation

facing the firm? Choose one of Porter’s business strategy models. Justify your answer.

The group would choose a Differentiation Strategy based on Porter's business strategy

models if we were Josie Santos, the current president of Dalia’s Clothing Stores. First of all,

Dalia's Clothing Stores faces competition from both high-end shops and low-cost merchants like

SuperMart. Dalia's ability to differentiate their products from the competition through

differentiation strategy will allow them to concentrate more on developing unique and high-

quality products. There is a big opportunity to produce clothing lines that are difficult to replicate

as Dalia has a history of working with Filipino designers and contract manufacturers.

By utilizing this type of strategy, they can charge high prices for its unique and premium

products. It enables the business to reach a niche market that appreciates these qualities and is
willing to pay more for it. Furthermore, Dalia's Clothing Stores can reposition itself in the market

with the use of the said strategy. It may improve its reputation as a supplier of unique, stylish,

and high-quality clothing which can attract more loyal customers. So, a differentiation strategy

would allow Dalia's Clothing Stores to avoid being "stuck in the middle" by offering specialized,

high-quality products that cater to a certain market niche.

3. What actions would you undertake to support the business strategy you are proposing.

Provide at least 5 specific recommendations.

To support the business strategy proposed for Dalia's Clothing Stores, here are five specific

recommendations for actions Ms. Josie Santos can undertake:

1. Product Differentiation and Quality Improvement:

● Collaborate with renowned Filipino designers to create exclusive collections that

set Dalia's apart from competitors.

● Invest in research and development to source high-quality materials and fabrics

for clothing.

● Conduct regular quality checks and establish stringent quality control processes to

ensure consistent product excellence.

2. E-commerce and Online Marketing:

● Develop a user-friendly e-commerce website and mobile app for online shopping.

● Implement effective digital marketing strategies, including social media

advertising and email marketing, to reach a broader audience.

● Offer online-exclusive promotions and discounts to incentivize online shopping.

3. In-Store Customer Experience Enhancement:


● Redesign store layouts to create an inviting and aesthetically pleasing shopping

environment.

● Train sales associates to provide excellent customer service, including personalized

recommendations and assistance.

● Implement a loyalty program with rewards and discounts for repeat customers.

4. Cost Management and Supply Chain Optimization:

● Review and optimize the supply chain to reduce manufacturing and operational

costs.

● Explore alternative sourcing options, such as partnering with local manufacturers

or ethical overseas suppliers.

● Consider implementing inventory management systems to minimize overstock and

understock situations.

5. Strategic Partnerships and Local Events:

● Collaborate with local fashion events and influencers to increase brand visibility

and credibility.

● Partner with complementary brands to offer cross-promotions and co-branded

products.

● Sponsor or participate in community events to strengthen ties with the local

community and attract local customers.

These actions should be part of a comprehensive strategy that aligns with the chosen

market positioning and addresses the challenges Dalia's Clothing Stores is facing. Regularly

monitor the progress of these initiatives and be prepared to adjust the strategy based on customer

feedback and changing market conditions.


4. Should Dalia diversify into an unrelated business such as real estate? Justify your answer.

Our business strategy and recommendations (referring to question 3) focuses on improving the

quality of the product, thus, as a group, we propose on having the following:

(a.) Our top tier priority is focusing on revitalizing the clothing business, since they were

already losing the money. We plan on saving the business first by improving product

quality and cost management before we venture into a different industry because it would

be a waste if we would just throw away the 10 year running business.

(b.) Diversifying into an unrelated business such as real estate is probably the safest

decision Ms. Josie would make, but that would come second after the clothing business is

saved. It would be chaotic in our mind if we make both plans simultaneously, so it's

necessary to fix the business first because that alone is already a handful. Diversification

would be our long-term consideration, once the business is stabilized and profitable

again.

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