Ch. 2 - Strategic Planning for Competitive Advantage -WI Students Begin Marketing Plan

MGI: Movado 

Along with others in business Movado suffered loses. They had to come up with a plan to revive its sales and they did, this chapter discusses making a plan to help with your companies survivability. 

This means Movado sat down and went over the basics like "What business are we in?" Movado makes watches, very distinctive watches. Jewelry is a secondary product. I have been to a Movado store, once before they closed it, and that was the first time I had ever seen the jewelry they made.  Their examination of their customer community probably provided with the evidence that me like many other consumers did not know of the jewelry section. They set their marketing plan objectives to return to profit. With loses in the $10's of millions over the past few years, they needed to make changes, heres where the strategy came into play. Chapter 2 discusses many options in strategic planning such as competitive advantages, strategic alternatives, and product strategies. Most of these things will cost the company money. 

Movado decided to go with something that will not cause them to put out any money and lead to loss but eventually the plan is to regain profit. Situation analysis provides them with the decision to close retail jewelry stores, realizing they had no need to maintain private business in select locations with their ability to make big business with private sellers like Zales and other jewelry stores. The boutique closures will lower annual revenue by $30 million but will ultimately help the company return to profitability. They also decided to expand business into China, this side of business experienced a growth of %50 in the first half of year.

With sales up Movado can say their strategic plan was a success!