Case Study – Analyzing Magnolia Brands’ Sustainable Competitive Advantage
The components of the external environment that will impact Magnolia Brands’ ability to realize its vision include customers, the government, the economy, and competitors (Worthington & Britton, 2014). First, the government will influence the realization of the brand’s vision through subsidies and incentives, enabling the company to make profits. Second, customers will influence Magnolia Brands’ ability to realize its vision by either purchasing its products and services or choosing its competitors. Third, the economy will also affect the realization of Magnolia Brands’ vision, considering that the company will make losses if the economy is unstable and thrive if the economy remains stable (Worthington & Britton, 2014). Last, the intensity of competition in the industry will impact Magnolia Brands’ ability to realize its vision because it will compel the company to enhance its products to attract and maintain customers, especially after the ending of the show ‘Fixer Upper.’
Magnolia Brands’ main competitors comprise companies offering similar products and services in the same market targeted by the brands. These include other television programs such as Ellen DeGeneres and Martha Stewart Living, which increase the competition for the brand’s new television program (Guzior, 2018). Other competitors include Amazon.com and other online shopping platforms that compete against the Magnolia Shop and Magnolia Seed and Supply. Other factors affecting the growth of Magnolia Brands include the fact that the family runs the business, the lack of ample parking space at the Magnolia Shop, and the ending of the Fixer Upper television program that was critical in the brand’s success and popularity (Brunson & Reed, 2018). Do you need help with your assignment ? Get in touch with us at eminencepapers.com.
Some of the internal factors that must be considered for Magnolia Brands to achieve its vision and mission include organizational structure, corporate culture, workers, and shareholders (Worthington & Britton, 2014). The company must maximally utilize employees’ skills and talents and establish appropriate organizational structures and culture. Magnolia brand’s strengths include having a monopolistic market comprising of customers that trust its products and services and the advantage of the Fixer Upper marketing strategy that provides an upper hand in launching new stores and product lines. However, it has weaknesses, such as the unwillingness to venture into other areas outside Waco, focusing on different areas of business, and the risk of elimination by external forces like government policies.
The new television show represents an opportunity in the home remodelling industry, considering that new clients will be impressed by the new designs and the low costs of the renovated houses by displaying Gaines’ work. As a result, the show markets the couples’ expertise in remodelling houses, thereby increasing their workflow and profitability (Brunson & Reed, 2018). The Magnolia Brand might face challenges and threats like the threat of new entrants into its niche market, unfavourable government policies, and new and more popular television shows that might reduce the Magnolia Brand’s new show’s viewership (Worthington & Britton, 2014).
The measurements that can be used to determine if the new show is successful comprise the number of new clients attracted to the brand after watching the show and its viewership since high numbers of viewership would indicate the show’s popularity and success. The ability of Magnolia Brands to continue being successful is significantly high. The brand is popularly known for its high-quality products and services and has created a loyal customer base. Besides, the new television show presents opportunities for the brand to continue advertising and marketing its products and services.
References
Brunson, R. R., & Reed, M. M. (2018). Fixer Upper: Expanding the Magnolia Brand. Waco, Texas: Baylor University Press.
Guzior, B. (2018, November 16). How the Gaines will extend the Magnolia brand to the new network. Retrieved from BizWomen: https://www.bizjournals.com/bizwomen/news/latest-news/2018/11/how-the-gaines-will-extend-magnolia-brand-to-new.html?page=all
Worthington, I., & Britton, C. (2014). The Business Environment. New York: Pearson Education.
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Question 
Analyzing Magnolia Brands’ Sustainable Competitive Advantage
Read “Case 6: Fixer Upper: Expanding the Magnolia Brand” in your Connect textbook.
Evaluate Magnolia Brands’ sustainable competitive advantage by analyzing the case study and answering the following questions in 350 to 525 words:
How will the components of the external environment impact Magnolia Brands’ ability to realize its vision?
Who are Magnolia Brands’ major competitors?
What other factors are affecting the growth of Magnolia Brands?
What internal factors must be considered for Magnolia Brands to achieve its vision and mission?
What are some of Magnolia Brands’ strengths and weaknesses?
How does the new show represent an opportunity in the home remodelling industry?
What challenges or threats might Magnolia Brand face?
What measurements can be used to determine if the new show is successful?
What is the feasibility of Magnolia Brands continuing to be successful? Why?