Page 8 - CIMA SCS Workbook February 2019 - Day 1 Suggested Solutions

CIMA FEBRUARY 2019 – STRATEGIC CASE STUDY

rd
• Open own chain of retail stores as opposed to sharing overall margins with 3 parties

• Develop more online sales through own website

• Merger with/acquisition of supplier (vertical integration)

• Target niche activity tracking segments eg mountaineering

• Corporate contracts in both profit-seeking and public sectors as employers look to give
fitness trackers to staff to make them lead healthier lifestyles

Threats

• Lapse in quality can lead to product recall and reputational damage

• Consumers switch to smartwatches instead of fitness trackers (disruptor?)

• New entrants to the market take market share quickly eg Gopher-IT launching 3 years ago
and already a serious challenge to Funfitt as market leader

• Stock outs would affect ability to satisfy demand

• Heavy investment in R&D fails to produce satisfactory return

48 KAPLAN PUBLISHING