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Executive summary for strategy formulation e types
e-Types is adistinct design firm locatedin Copenhagen, Denmark. The company
was founded in 1997 andhas 50 employees tilldate (2013). The firm has been
in spotlight since 2006 andhas a reputationfor its edgy and unusual designs.
The four designers who were the founders at e-types were frustratedwith
everyday design they were experiencingamongbrands andstand by the claims
of “Smashingthe worldof design”. In 2010, e-Types became apart ofe-Types
CEO, designers and strategists at e-Types.
e-Types was approachedby DanishNationalTeam in 2006, to designtheir
brand image, which createdalot of controversy inthe company between
designers versus founders, managers and other employees ofthe firm. Three
designs were presentedto the client where everyonelikedthe first option
whichwas more ofa traditional design except the designers inthe company
were reluctant because ofstrongprinciples basedonanedgy design and thus
createdanother option. But the client still preferredthe first one. The thirdone
was let the client decide and ensure customizations. A lot ofmoney was at
stake here given the opportunityfor firm to be popular as a prominent brandin
Denmarkand hence immense recognitioninthe country.
Based onabove client proposition,e-Types shouldput aproper strategicplan
in place for its future growthor else there wouldbe major consequences if
disputes in the firm continue. A thoroughSWOT Analysis is needed to put this
strategic planin place. Holding by its brand name as a leader in edgy and catchy
designs, this strategy ofhigh product differentiationand chargingpremium
prices for specific clients canbe beneficialbut company canalso lose huge
amounts ofmoney and reputationifthey turndownimportant clients as likes
of Danish National Team.
Thus, a pivot to cost leadership strategy canbe done by e-Types ifit establishes
another unit or expands its ownresources that specifically caters to broad
number ofclients who prefer traditionaland conventionaldesigns. But this
comes withaninsurmountable amount ofrisks as lot of strategic team
planning will be requiredupfront.
1. Competitors couldeasily replicate designs and can stealprofits if
the designs of e-Types becomes too mainstream.
2. If the company is unable to acquire premium clients, thenwhole
notionon whiche-Types is identifiedas a brand can crumble.
3. e-Types may also be seenas traditional design firm by its
e-Types can formulate aproduct differentiationstrategy andcreate edgy
designs for its premium clients and enjoy high profit margins.
A cost leadership strategy couldbe usefulto capture abroadmarket
share and those who prefer traditional/conventionaldesigns pricingits
product low to moderate. Profits canbe anywhere betweenlow to high.
Establishment ofanother unit is required.