Chen Brothers' Strategy
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Chen Brothers' Strategy
Here, let's introduce the rapidly growing luxury food wholesaler Chen Brothers. The ultimate goal of Chen Brothers is to expand profits, achieve a comfortable workplace, and become a reliable organic food wholesaler. These are admirable goals, but the management team recognized that they were not strategies, but rather a kind of framework (good goals play a role like game rules in eliminating actions that deviate from the goals). So what is the company's strategy? It is to target local food stores that purchase high-end and rare ingredients at high prices, which are not handled by major supermarkets, and expand their share there. The management team divided the target customers into three ranks and set strategic goals for each. The most important goal is to achieve overwhelming share in the first-ranked food stores. The second-ranked goal is to achieve share that matches the sales efforts, and the third-ranked goal is to promote product penetration.
Ultimate Goals (Objectives)
Expand profits
Achieve a comfortable workplace
Become a reliable organic food wholesaler
Strategy
Target local food stores that purchase rare ingredients at high prices, which are not handled by major supermarkets
Strategic Goals
Achieve overwhelming share in the first-ranked food stores
Achieve share that matches the sales efforts in the second-ranked stores
Promote product penetration in the third-ranked stores