Cutco Case Analysis essay

Cutco Case AnalysisCutlery/ Direct Selling IndustrySales force consists of 15 million direct sellers2007 U.S. Industry sales were $30.8 billion; Global sales were $114 billionAverage annual growth rate is 3.2%Company:61st year in operation (2010)$200 million revenuesHeadquarters located in Olean, PennsylvaniaOver 500 products, ranging in price from $27 to $945 (Increases 5% every other year)Numerous subsidiaries-Trends:Majority of sales force (90%) only employed for one selling season which results in the loss of customersCompetition’s products are mostly sold in department stores as well as mass merchandisers at a reduced priceMergers and acquisitionsTarget college students as their primary sales forceNew and existing customers desire to make Web-based purchasesProblem StatementIn order to achieve revenues in excess of $500 million per year in the next five years and ultimately achieve revenues of $1 billion annually, CUTCO Corporation must implement a long-range growth strategy by selecting and focusing on a growth driver as well as a strategic marketing channel for the next ten years.Alternative Evaluation1. Acquiring a cutlery manufacturing companyCost = $10-15 milliona. Advantage: Gain additional plant capacity required for growth expansion b. Disadvantage: The acquisition would divert attention away from the company’s primary activities. 2. Expansion of Internet recruiting and new Internet technologiesCost = $5-10 millionc. Advantage: Improving recruiting procedures and gaining knowledge of new internet technologies d. Disadvantage: Cost of hiring and training additional sales force 3. Expanding brand recognition and preference through increasing through public relations exposureCost = $1-2 millione. Advantage:f. Disadvantage:4. Reenergizing major international marketing effortsCost = $10-15…PlCutco Case AnalysisCutco Case AnalysisNot ready? We are here to write this paper from scratch.Place an order for this assignment or any other paper with us. We guarantee that the paper will be delivered within the specified deadline. We also have a personalized customer support and you will be able to communicate with your writer throughout the order preparation process. Thank you for choosing us.