Formulating a strategy for e-

Types

Grecia Hernández
 Why a strong strategy is essential for the
future business success?

A strong strategy is essential for the future business success because it

helps define targets and goals for the company and identifies initiatives
that will allow companies to achieve those goals.
 e-Types Strategy Formulation
VRIO Framework
• Brand reputation: They have established themselves as a firm that that
focuses primarily on innovative and creative design and they have won several
awards for this.
• Unique way of performing tasks: In order to achieve their innovative work,
they focus on understanding their customers on a deeper level. They analyze
their customers’ culture, values, inner motivations and business strategy. This
approach helps them deliver new designs that focus on their customers’
identity (a sense of belonging and what they are striving to become).
• Unique team: Their team is comprised by 50 creatives with different areas of
expertise, and on each project they take in they decide which people is the
best for the task.
 e-Types Strategy Formulation
Given the identified resources, the strategy for e-types would be as
follows: e-types should compete on the innovative design business, in
other words, they should continue to position themselves in the
disruptive design market, where potential clients reach them because
of their innovative ideas and deep understanding of their business
needs; by encouraging pushing boundaries with the help of their highly
skilled creatives with different areas of expertise and their unique way
of performing their research and executing their ground breaking work.
 Why managers too often formulate sub-
optimal strategies?

Managers often formulate sub-optimal strategies because they have

given the decision to very few people that may not have the pertinent
information at the right time, for example, not having considered all the
implications and repercussions of the strategy such as hidden costs; or
they may have conflicting preferences.
 Measures to optimize current business
strategies
Some measures to optimize current business strategies would be the
following:
• Increase the information search when making important decisions (increase
their cognitive abilities).
• Periodically check whether the results are in line with the targets of the
strategy. If it is not the case, then the company has to revise their strategy
and implement new initiatives.
• Check if the future value of the strategy outweighs the future costs. If it is not
the case, then re- design the strategy so this becomes true.