SaveLots is a chain of retail stores selling furniture house

SaveLots is a chain of retail stores selling furniture, household goods, and some long shelf-life food products. It buys large lots of products from manufacturers, sometimes discontinued models or “slightly” damaged goods, and offers these to customers at deep discounts. Its stores are very basic, and other than the checkout counter, little service is provided to customers. It has a sophisticated computer system to track every item in stock, in transportation, and sold, and a team of highly paid data analysts to help run the system. Beds and mattresses are high profit items for SaveLots. The board of directors of SaveLots recently reviewed a proposal to back-integrate into mattress manufacturing, and concluded that it should remain in retail and avoid manufacturing altogether. SaveLots’s strategy is to provide customers with a great value on household goods. Classify SaveLots’ strategy using Miles & Snow’s typology:

Solution

Case Study Summary :

Miles & Snow\'s typology :

Every organization has pre set goals and vision .The strategies that the organization uses to reach and achieve these goals are known as the business level stratgies . Raymond Miles and Charles Snow identified as the FOUR main business strategies that organizations tend to follow.There are :

Savelot\'s Strategy - Defender :

The company tried to start a new way of operations and start a new business.But then the company tried to remain in retail and avoid manufacturing altogether. SaveLots’s strategy is to provide customers with a great value on household goods. The company is trying to follow the Strategy of Miles & Snow-Defender Strategy .Protecting the current markets and develop current markets.This is an attempt to protect their markets from the competitors.These organizations do not make major changes to the core competencies.They tend to develop the exisiting operations by enhancing their efficiency.The progress rate depends on the environment stability.These organizations are dedicated to the narrowed paths of current markets and try to defend them from competitors aggressively.The methodology consists of high degree of formalisation and centralisation.