Analysis of Two Major U.S. Companies: Success and Struggle

 

Analysis of Two Major U.S. Companies: Success and Struggle
Introduction
In this analysis, we will compare and contrast the integrated business strategies of two major U.S. companies, one that has succeeded and one that has struggled or failed in the past ten years. Through research and analysis, we will examine their performance indicators, identify potential causes and effects, and make recommendations for the struggling/failed company to integrate into its strategy.

Successful Company: Apple Inc.
Integrated Business Strategy:
Apple Inc. has consistently focused on innovation, product design, and superior customer experience as key components of its business strategy. The company strives to create cutting-edge technology products that seamlessly integrate hardware, software, and services.
Apple’s strategy emphasizes a closed ecosystem and vertical integration, with tight control over hardware, software, and content distribution channels. This approach allows them to deliver a seamless user experience across their product lineup.
Performance Indicators:
Apple pays close attention to customer satisfaction metrics, such as Net Promoter Score (NPS) and customer retention rates. By continuously monitoring these indicators, Apple is able to gauge customer loyalty and adapt its strategies accordingly.
Additionally, Apple closely tracks its market share in various product categories and regions. This performance indicator allows them to assess their competitive position and make informed decisions regarding product pricing, distribution, and marketing.
Recommendation for Struggling/Failed Company:
The struggling/failed company could have benefited from integrating a customer-centric approach into its strategy. By prioritizing customer satisfaction and loyalty, the company could have better understood the evolving needs of its target market and made necessary adjustments to its offerings and customer experience.
Struggling/Failed Company: Sears Holdings Corporation
Integrated Business Strategy:
Sears Holdings Corporation, a company that has struggled in recent years, failed to adapt to the changing retail landscape. Its strategy relied heavily on traditional brick-and-mortar stores and failed to effectively leverage digital platforms and e-commerce.
Sears focused on cost-cutting measures instead of investing in innovation or improving the customer experience. This approach resulted in a decline in store footfall, loss of market share, and ultimately financial distress.
Performance Indicators:
One key performance indicator that Sears neglected was online sales growth. While e-commerce was booming in the retail industry, Sears failed to capitalize on this trend. By ignoring this indicator, the company missed out on a significant revenue stream and lost market share to competitors.
Another neglected performance indicator was inventory turnover rate. Sears carried excessive inventory in its stores, which tied up capital and increased costs. This inefficiency contributed to declining profitability and eroded the company’s competitiveness.
Recommendation for Struggling/Failed Company:
A recommendation for the struggling/failed company would be to invest in digital transformation. By embracing e-commerce and omnichannel retailing, the company could have expanded its reach, improved convenience for customers, and gained a competitive edge in the market.

Conclusion
In conclusion, the successful company, Apple Inc., demonstrates an integrated business strategy focused on innovation, superior customer experience, and vertical integration. They pay attention to performance indicators such as customer satisfaction metrics and market share. On the other hand, the struggling/failed company, Sears Holdings Corporation, failed to adapt to the digital era, ignored performance indicators such as online sales growth and inventory turnover rate, and neglected investment in innovation and customer experience.

To turn their fortunes around, the struggling/failed company could have integrated a customer-centric approach into their strategy and invested in digital transformation. By prioritizing customer satisfaction, adopting e-commerce, and leveraging technology to improve operational efficiency, they could have better positioned themselves in the market. The successful company’s focus on innovation, customer satisfaction, and market share demonstrates the importance of paying attention to these performance indicators for sustained success in today’s rapidly evolving business landscape.