Each organization is hard to grow better approaches to develop their revenue, profit, and market share. Key partners which include a formal assentation between interested individuals to cooporate assets, expenses, and abilities to accomplish a shared objective. As one of the biggest business associations in London, TK MAXX has an obligation to grasp a pro-active dynamic marketing procedure such as corporation with other organizations to help in accomplishing its objectives of expanding its revenue income, profit, and market share (Fodness, 2005).
TK MAXX has six dynamic partner groups that are formally organized to help, systems administration, and improvement purposes. These accomplices give the organization new and dependable ideas that support profession improvement and systems administration (Lee, N.R &Kotler, 2015). These partner groups are normally efficient and have a devoted spotlight on the primary objectives of the business. Since 2005, TK MAXX has been an official Comic Relief partner where it managed to raise an incredible amount of revenue worth $13. 4 million. In 2003, TK MAXX partnered with Sainsbury’s to offer Red Nose Day printed T-shirts where they raisedmore than 3.7 million Euros for the Comic Relief. The heft of this amount was raised from offering the Stella McCartney T-shirts (Barringer, Wortman, and Macy, 1994). The organization likewise cooperated with the Emma Bridgewater to deliver and design limited edition Red Nose Day mugs and bakeware’s which sold so profoundly.
Strategic partnership idea
Sainsbury is the organization that has been considered best for association with TK MAXX. It is the second biggest chain of supermarket stores in the United Kingdom, established in 1869. The chose strategy includes facilitating of Comic Relief which is a charity event that significantly works to supporting cancer patients and children with cerebrum tumor. Participation in organized charity events is one TK MAXX’s most loved fun exercises that are intended to reflect on its image and the level of client engagement (Zufry, 1996). The principle target of Sainsbury’s is to enhance its level of consumer loyalty as it is positioned the second best retail shop in the market. Considering its present position in the market, a push to upgrade the organization’s picture and marking by banding together with Sainsbury’s to give them a completive preferred standpoint over other off-value retailers like Goodhood, Tesco PLC, and George Clothing. The major goal of TK MAXX about its partnership idea is to enhance its customer perception in light of the fact that numerous clients feel that TK MAXX still offers high costs for its items. In this way, by incorporating charity events in its projects, the organization may increase the value of its items while keeping up the current quality that identifies with client perception since opinion is a basic drive for practices, states of mind, and inspirations (Carson and Crommie, 1989).
Type of partnership
According to Stone, Woodcock and Wilson (1996), the association between TK MXX and Sainsbury’s is a key union organization which is an agreement between partners to cooperate to accomplish shared objectives and goals. The two partners cooperate to use each other’s abilities, assets, and expenses to develop their clients’ experiences. There are four key classes that are helpful in producing a justification for basic drivers of progress. These drivers are briefly explained in the table below.
Fig. 1.1 Drivers of Interorganisational Relationships: Adapted from Gordon (2015)
- Value Enhancing Opportunities
- Environmental Complexities
- Competitive Strategy
- Skills and Resources Gap
- Value enhancing opportunities
According to Banerjee and Banerjee (2017), Partnerships become beneficial if all the company’s included benefit equally and improve their value. Planning and participating in charity activities like the Relief Comic that spotlights on helping burdened families that promote physical cooperation of targeted clients builds the brand image of TK MAXX as it keeps on associating with its image name with charity, advancement of wellbeing, and formation of a feeling of solidarity. Furthermore, this charity event benefits TK MAXX as most families that go to such occasions purchase its marked items, for example, T-Shirts and mugs which is a vital component to advancing the organizations benefit, income, and piece of the overall industry (Brown and Bell, 2015). Sainsbury’s take advantage of such organization by enhancing its image mindfulness through its relationship with the world’s driving clothes store (Sargeant, 1999). Such organizations impact potential clients to pick these organizations when settling on future purchase choices.
The chances of developing a successful partnership with other corporations can be greatly disrupted by the social, economic, and technological complexities of different companies (Luecking, 2017). Given the impact of organizing charity events, consumers often get attracted to companies that organize such events. These social events provide a platform for both TK MAXX and Sainsbury’s to market their brands and improve their customer preferences (Sautter & Leisen, 1999). TK MAXX gets to sell its branded products in such events while Sainsbury’s get an opportunity to improve its brand name hence increasing their brand loyalty which directly reflects consumers opinions about the company’s products and services.
Technology is one of the most highly influential factors in the London retail market. Most people spend the biggest part of their time on technological media especially children (Pulendran, Speed &Widing, 2015). When companies consider introducing social events that promote physical interaction encourages parents to attend such events in an effort to control their children’s involvement in online activities. This partnership promotes the branding of both companies hence raising sustainable profits as parents are inclined to make purchases from companies that promote outdoor activities (Armstrong et al. 2015).
Over the years, consumers have identified TK MAXX as their major target market for the financially established individuals. In this partnership with Sainsbury’s, TK MAXX gets a chance to reach out to all kinds of people because Sainsbury’s is a retail shop that accommodates all the needs of its customers from different economic levels. TK MAXX can use this partnership to reach out to new target consumers through natural locations while Sainsbury’s can reach out to more customers by using means of promotional services that relate to the organized events. This partnership does not offer an opportunity for both companies to make direct sales (McCamley & Gilmore, 2018).
The aim of a strategic partnership is to offer mutual advantageous benefits for the parties involved while using co-operative strategies (Kindström & Kowalkowski, 2014). Such partnerships increase the competitive levels for organizations involved by providing an effective and unique grounds for both companies to market their brands to their target customers (Resnick et al. 2016). Most charity events are known for targeting majorly the disadvantaged families. However, the corporation of Sainsbury’s and TK MAXX attracts different individuals hence improving their branding and increasing their competitive advantage (Kotabe & 2014).
Skills and resources gap
Partnerships often provide opportunities for companies to improve their skills and resources (Kindra, 2014). TK MAXX has distribution points in different locations minimizing the cost of external sourcing. As a chain of supermarkets, Sainsbury’s can offer TK MAXX with a clothing outlet and even sell some of its branded fashion products in its retail outlets. On the other hand, Sainsbury’s benefits from TK MAXX by attracting customers who purchase the companies branded products from its retail outlets (McDonad & Wilson, 2016). Since TK MAXX has established a brand name using its effective marketing skills, Sainsbury’s stands a chance of utilizing their well-established communication channels.
Industry positioning strategic options
The London fashion market is expected to grow rapidly. It is therefore crucial for TK MAXX to focus on implementing effective strategies that enable them to grow and maintain their market share (Camilleri, 2018). The effective strategic options for an organization are illustrated in the diagram below.
Strategic Choices for Share Leaders in Growth Markets
Strategic choices should be considered most preferable by factors such as the strength of competitors, size of the market, and customer characteristics (Meidan, moutinho & Chan, 2015).
The London fashion market is growing rapidly, and most fashion choices are made based on the outdoor events that promote interactions among people (Al Mansoori et al. 2018). In relation to this, a market strategy that is confrontational can be considered helpful in strengthening the current market position of TK MAXX. When the outdoor events are organized, people desire to look more fashionable when attending such events. Hence, the company gets a competitive advantage over other companies that offer similar goods and services. The main idea for organizing outside events is to help the company confront the rising issue of developing a creative idea is for TK MAXX to develop a suitable program that will enable it to compete favorably with other fashion retailers (Abidemi, Halim & Alshuaibi, 2017.). The Relief Comic program majorly focuses on ensuring that both children and parents are encouraged to participate in outdoor activities that do not involve technology and also provide them with a chance to help other people. Therefore, in correspondence to the figure above, the creative idea approach provides a suitable confrontational plan that reflects positively on TK MAXX pre-emptive outdoor image and also meets the desires and expectations of the targeted consumers (Tomczak, Reinecke & Kuss, 2018).
The primary objective of organizing the Comic Relief program is to give majorly children an opportunity to experience TK MAXX outdoor activities and its environment. By doing this, the company gains a competitive advantage relating charity events (Li, Lai & Lin, 2017). TK MAXX thus gets an opportunity to confront its major competitor, Goodhood that is currently focusing on online marketing (Hung, 2015). A strategic choice that is objective aims at increasing the level of market competitiveness of TK MAXX by making an effort to help parents address their biggest challenge of helping their children to get to attend outdoor activities while minimizing the amount of time they spend on the technological media (Fleischmann, Meyr & Wagner, 2015).
The main objective of TK MAXX is to offer its consumers with fashion is to offer fashion items such as accessories, handbags, and t-shirts. Given the constantly changing consumer tastes and demands, it is important for the company to keep track, understand, and respond appropriately to these changes in consumer demands to help it offer value to its customers. According to France, Merrilees & Miller (2015), this is an effort made by the company to avoid giving its customers a negative attitude and perception as these crucial to a company’s strategic growth. The Goodhoods have a strategic market expansion plan which it uses to offer customers other outdoor activities by organizing fun activities that target children (Hatipoglu, Alvarez & Ertuna, 2016). Therefore, it is important for TK MAXX to respond and confront this competitor strategy effectively to stay in the top position in the market. The confrontation strategy gives an opportunity for TK MAXX to compete with Goodhoods and provide a favorable outdoor environment that enables consumers to gain a lifetime experience (Plank, 2015).
According to Ansoff’s Matrix, the confrontational strategy is highlighted as a development product for TK MAXX. According to the idea of product development, TK MAXX must improve the services they are offering to their consumers in the current market. This is only possible if the company adjusts to meet the constantly changing consumer demands. However, Goodhood’s strategy of venturing into outdoor activities that target children pose a possible threat to their current offering which targets online consumers (Abulehyeh & Al-zoub, 2017).
|Existing Products||New Products|
|Existing Markets||Market Penetration||Product Development|
|New Markets||Market Development||Diversification|
The confrontational approach seeks to address the offerings of the competitors, offers an effective approach to respond to the complaints of a common competitor, and the constantly changing consumer demands (Crick & Crick, 2015). According to customers from Goodhhod, the company lacks effective physical promotional events where customers can consequently meet and interact with each other. This is an opportunity for TK MAXX to gain a competitive advantage in the market since there are only a few competitors who have expert skills in providing effective outdoor events (Hanssens & Pauwels, 2016). Involvement in these activities also provides a platform for TK MAXX to improve its brand image and customer opinion by reinforcing the company’s moral and ethical values by helping families to get a platform to control the amount of time their children spend on technological media (French & Russell-Bennett, 2015).
In most cases, the cost involved in implementing this strategic is less as compared to that incurred by the competitor (Strauss, 2016). With TK MAXX’s location in major towns, costs will majorly be incurred in hiring skilled and qualified experts that conduct the charity programs. Although implementation of this approach may prove to be costly, the company’s ability to enhance provide an outdoor experience that accommodates both children and parents provides significant value to the company and provide good consumer experiences that offsets the costs incurred (Moutinho, Curry & Davies, 2015).
Appendix one: strategic partnership for TK MAXX
|Option 1: Sainsbury’s||Option 2: BT||Option 3: British Airways|
|Company bio||Sainsbury’s is the second largest chain of in the United States that offers forecourt and convenience store (Atkinson, 2016). The company has a net income of $471million. It was founded in 1869 and has 1415 store as at may 2017||BT is a holding company owning the British telecommunications services. It has its headquarters in London. The company has a profit of $1.908 million in 2017. Its subsidiaries are MORE, EE limited, Openreach, dabs.com and Plusnet.||The largest airline company in the United Kingdom ranked according to the size of fleet. It has 183 destinations.|
|partnership||Strategic alliance||Strategic alliance||Strategic alliance|
|Primary objective||Help customers live well at affordable cost||Providing a wide range of communication services in the United Kingdom and other countries.||Becoming the world’s premium airways|
|idea||Provide products to customers at affordable prices and make a difference in their customers’ lives every day.||To make fibre optic broadband services available in the united states and other countries for domestic and small businesses.||Acquire a mobile business to provide customers with innovative and seamless communication services that utilizes fibre broadband and advanced mobile abilities|
|Value enhancing opportunities||Sainsbury’s has a chance to benefit from an improved customer perception as it works around the clock to address the needs of customers and make retail products available to all customers at affordable prices. It also benefits from improved brand awareness by getting an exposure to biggest population and improved profit earnings achieved through increased sales.||BT will benefit from this partnership with TK MAXX through increased awareness of their communication products (Plank, 2015). The company may also benefit from improved sales since many small scale business. TK MAXX will also benefit from improved brand opinions due to its association with ethical company that known to many clients.||TK MAXX will benefit from this partnership as its brand awareness will be improved. It will also create more sales as it attracts several active customers. The British Airways will benefit from this partnership since there are several locations for TK MAXX across the town which enables it to gain easy access to the market segment.|
|Environmental complexities||There are several fashion choices that have been affected by availability of outdoor activities. This partnership aims at making TK MAXX a desirable fashion retail shop of choice for many customers. An increased brand exposure will help the company to improve its sales through creating awareness and exposure to many people.||The telecommunications products offered by BT company is increasing growing in the consumer market due change in the perception concerning optic fibre. This has improved the branding of the company hence improving its economic earnings. However, this product is hardly available to small scale business because it is comparatively expensive. Partnership with TK MAXX will help the company improve its sales it specialise in providing fashion items that are needed by many people.||The currently increasing concern among parents is the amount of time that children spend on social media. The biggest percentage of parents complain that children spend most of their time on online sites. Partnership with the British Airways and TK MAXX will help to increase the rate of attendance of outdoor activities because British Airways works to provide travel services affordable and accessible to most people. This partnership will help create awareness on the importance of engaging in physical activities by making these services affordable and easily accessible to me.|
|Market access||The primary target of TK MAXX is celebrities and fashion stars. These are the individuals who pay most attention to fashion. Therefore, incorporating fashion activities creates more opportunities for improving the company’s brand perception||Apart from targeting children, TK MAXX also targets parents. Most of the fashion products offered by the company are intended to impress parents. Promoting activities such fashion events will definitely increase their branding and sales.||As TK MAXX primary target is the fashion stars, the British airways further encourages individuals to travel across the country and increase customer perception for TK MAXX offering travel promotions for children and parents.|
|Comparative strategy||Family times are important events that must be included in holiday timetable. Charity events aim at bringing families together hence giving TK MAXX an upper hand in marketing itself. Sainsbury’s is the second largest retail shop in the market therefore it stands a chance to benefit from increased customer preference when it meets the customer demands.||Consumers are most likely to choose a company over the other if they have tested its products. Partnership with TK MAXX will increase high chances of customers making purchase from BT. Brand awareness can also be improved by providing samples to customers for them to test them before making a decision to buy them.||The target market for TK MAXX have a preference for travelling. This indicates that a partnership with British Airways will most likely improve the company’s sales and increase its branding as most customers who like to travel would desire to buy to new clothes.|
|Skills and resources gap||Sainsbury’s and TK MAXX have the capacities to support each other in their partnership. Both organizations have a pre-existing customer base that they can both utilize to improve their branding and sales volume. Under a financial pressure, TK MAXX would utilize the Sainsbury’s big marketing capacities to increase its brand awareness and attract more clients.||The skills and resources of both companies can be used to enhance the companies’ individual growth. The sample products from both companies can be used to attract existing and potential clients for the two companies. The TK MAXX uses a product showcase display to reduce the cost of marketing for BT.||Both British Airways and TK MAXX stand a chance of benefiting from the resources and skills offered by each company. TK MAXX provide fashion items while British Airways provides travel services for clients who would like to attend outdoor fashion events. Most parents are expected to involve their children in such events. The British Airways provide a means of travel to such destinations.|
|advantage||This partnership has an advantage of increasing company brand perception as companies that cares for disadvantaged individuals hence attracting more customers.||This partnership helps BT to improve its brand perception while TK MAXX increases its sales level because it get affordable communication services.||A partnership between TK MAXX and British Airways benefits both companies with shared resources and skills. This in turn leads to increased customer perception and improved sales by meeting consumer demands.|
Appendix two: strategic options for TK MAXX
|Option 1: charity events||Option 2: fashion events||Option 3: Comic Relief|
|Strategy type||Fortress strategy||Confrontational strategy||Market expansion strategy|
|idea||To enhance an environment where customers can meet to interact with each other and share experiences. The charity event helps in taking care of the less fortunate members of the society.||This aims at providing a direct compensation for Goodhoods outdoor events where the main target is children and adults who are interest in learning about fashion such as modeling and designing.||The comic Relief creates a platform for TK MAXX to appeal to its target customers by offering donations to cancer treatments and taking care of children with brain tumor.|
|objective||To increase the company’s competitive advantage over its competitors by establishing a positive brand name.||To reduce the rates of concerns about children spending more time on online technology. It also aims at increasing its marketing competitiveness by the introduction of fashion events.||To increase the level of care to children so that they can get access to better medication. It also aims at acquiring new customers and improve their perception of the company.|
|Rationale||The united states kingdom’s charity programs are highly appreciated. TK MAXX is a leading company in organizing charity events which are highly appreciated by many people. The company can combine its resources in such events to ensure that customers get better experiences. This strategy will help the company to create a platform for customers to access their services.||Fashion events are highly regarded just like any other beautiful event in the city. By organizing such events, TK MAXX gets an opportunity to showcase its stocks and also get partnerships from other fashion programs hence increasing its customer perception.||The Relief Comic event attracts many people who wish to give their donations to help children. This event gives TK MAXX an opportunity to convince its target customers that the company cares about the health of children. Thus it increases its competitive advantage over its major competitors like Goodhood.|
Competitor response to strategy option
|Fortress strategy||Confrontation strategy||Market expansion|
|Goodhood||Goodhood does not paertake to several charity events. This implies that it has a limit reach to its clients and low brand marketing. This implies the company need to make more investments on charity events to compete favourably with TK MAX.||There are so many people who are interested in fashion events. There is a high demand for such events from customers and many upcoming fashion icons. Goodhoods may consider opening its doors to such activities while putting people from different age groups. This can possibly increase its customer opinion even it may be expensive to run such events.||Goodhood does not participate in Comic Relief event. This an opportunity for the company to expand its activities and marketing strategies.|
|Tesco PLC||Tesco Plc are currently participating in charity organizations. The company may have to increase its participation in organized charity events that aim at helping the needy members of the community to improve their customer perception.||Tesco PLC are currently holding several fashion events that draws attention from several potential customers. Therefore, it is not necessary for it to consider any more of such events.||Tesco Plc. focuses on participating in charity events and community services. Comic is one of the events that offers the company an opportunity to expand its activities. The company can consider taking part in the Comic Relief to expand its activities and market its brand.|
|George Clothing||George clothing has not expanded its charity activities. The company, however, considers putting aside more cash to help in supporting charity organizations with aim of increasing its marketability and customer perception.||George clothing has developed a good brand trust from its customers. However, this image has been tainted by the low quality of cloths it put in the market. Therefore, it organizing fashion events could be one of the most effective strategies for the company to regain its brand image.||George clothing has a limited market access. If it directs its attention to participating in the Comic Relief, it will get an opportunity to market its brand by selling its branded items and giving donations for charity events. This has an effect of expanding its access to the market and increasing customer perception.|
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