Strategies for Success in the Handbag Industry

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Balanced Scorecard (BSC) Matrix

Table 1: Balanced Scorecard (BSC) Matrix for BACHI Barcelona

Perspective	Objectives	Measure	Target	Indicator
Financial	Acquire more capital	Percentage (%) increase	40%	Increase in capital
	Margin increase	%	30% revenue	Cost efficiency
Customer	Increase in client retention	%	50%	Sales increase
	Consumer satisfaction	%	100%	Positive customer feedback
	Acquire potential customers	%	50%	Increase in orders and purchases
Business processes (Internal)	Obtain current/new production equipment	units or %	At least ten units or 30%	Increase in production
	Additional personnel	%	40%	Increase in production
	Reduced turnover	%	100%	Increase in production and efficiency
Business growth	Launch of new product	%	30%	More sales and an increase in market coverage

Based on the contribution of Michael Porter, these strategies can be justified as follows:

Strategy in Cost Leadership

There is a low cost of human capital since the company only has two members. They also sell handbags that are less expensive than their counterparts. Finally, they use cheap and environmentally friendly materials, allowing businesses to provide better product prices. The low-cost approach focuses on creating standardized items at a low per-unit cost for price-conscious customers (Islami et al., 2020). Nonetheless, the management must invest resources to obtain a competitive edge through exceptional innovation, high quality, and sensitivity to client needs.

Differentiation Strategy

Provide unique designs and prints showing details based on real-life pictures. The more competitors there are and the number of similar commodities they offer, the less powerful a firm becomes. Therefore, a differentiation strategy asserts that a business must provide valuable and unique items or services to customers to improve loyalty (Islami et al., 2020). Generally, how valuable a company’s products are in the marketplace determines its ability to place a hefty price tag.

Focus Strategy

Focus pertains to offering a specialized service or product in a niche market. Following this strategy allows the organization to integrate various activities associated with distinction and low cost in a specific segment from which it earns higher profits (Islami et al., 2020). Women are the company’s target market; basically, those of various perspectives, both professionals and non-professionals. The company develops bags for dynamic, independent, strong, and brave ladies who are unwilling to settle for anything less than the best and want to stand out in their daily outfits.

Reference

Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking porter’s generic strategies to firm performance. Future Business Journal, 6(1), 1-15.

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Strategies for Success in the Handbag Industry

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