BUS 687 MBA Capstone
The Houston Industrial Supply Company (Hisco) is a distribution company that serves the defense, aerospace, electronic assembly, electronics, and medical, industrial markets. The company’s strategic formulation of plans is a consistent process that relies on the SWOT analysis. For the next two to three years, my strategy will be innovation.
Concerning strengths, Hisco is a powerful performer in financial terms when profit and revenue generation is taken into consideration. The company’s excellent financial performance emanates from its strengthened model of business and value chains that create enormous profits for the company. The Company’s weakness is the low diversification in terms of its geographic locations. The vulnerability makes the company prone to risks, particularly in the market of the U.S, where there are lesser spread branches. Despite being based in the U.S, Hisco has expanded its opportunities for growth by establishing stocking locations in Canada and Mexico (Company Information). Thus, the globalization has enabled the company to diversify geographically. The use internet also allows Hisco to engage in online selling and to increase sales with the advantage of of active operations and economies of scale. Hisco faces massive competition from other companies such as the BPG Home Warranty Company who can offer their products and services at lower prices. The rise in competition is negatively influencing Hisco’s buyer behavior as some of them have shifted to the competitors, keeping the company prone to risks.
Innovation as a business strategy revolves around creating new value that the customers are willing to utilize and pay. With innovation, my new and old markets will benefit because the change will aim at developing new ideas, improving the existing products and services, and enhancing efficiency. As a result, innovation will keep the business focused on the goal while keeping the customers interested in the company.