Magnolia Brand Case Study Analysis

Magnolia Brand Case Study Analysis

Impact of External Factors on Magnolia Brand’s Vision

Magnolia’s vision is to improve society’s welfare. To that end, customers are a critical component of the success of any organization. By pursuing and achieving customer satisfaction, the Magnolia brand will achieve brand success. Also, competition from other companies offering similar services will help Magnolia improve their offerings. Additionally, government subsidies and tax levies will come in handy. Capital-intensive investments characterize the real-estate sector; hence such levies will go a long way to boost business. Hire our assignment writing services in case your assignment is devastating you. We offer assignment help with high professionalism.

Major Competitors

One of Magnolia’s brand’s competitors is AMC Studios. AMC Studio is the producer of the Dead Walking series, which ranked as one of the most-watched shows in 2017. Also, the Magnolia brand receives competition from the food industry players. As a cupcake producer in Georgia, the Magnolia brand receives competition from players like Georgetown Cupcake, Endulge Cupcake Boutique, Diamond Trust, and Piece of Cake, among others. However, the Magnolia brand does not face significant competition in the house-flipping business.

Factors Affecting the Growth of the Magnolia Brand

Apart from the competition, another factor affecting the Magnolia brand’s success includes openness to new ideas. A business can grow by identifying new opportunities and leveraging them to develop (Shatilo, 2020). To that end, the Magnolia brand has exploited many opportunities it has encountered. Gaines and Chip have explored other options from the house flipping business, including making cakes and TV show production.

Moreover, the availability of funds and budgeting efficiency have also affected the Magnolia brand’s success in the market. A business with access to credit and funding from investors is likely to succeed (Shatilo, 2020). Chip and Joanna’s success is partly attributable to access to credit. At one point in their journey, Joanna and Chip borrowed $5,000, acquired their first store in 2003, and named it “Little Shop on Bosque.” Without access to credit, it would have been an uphill task for the two investors to acquire their store, having been new to the business.

Internal Factors

Internally, the Magnolia brand’s marketing capability will determine its success. A key factor to successful marketing is to target the right audience (Shatilo, 2020). Chip and Joanna leveraged their TV show, the Upper Fixer, to showcase and market their home-flipping business. Besides getting paid by television stations, the Magnolia brand also received immense publicity from the initiative.

Strengths and Weaknesses

A notable strength of the Magnolia brand is the availability of various products and services. Apart from the house flipping business, which was a primary business initiative, the company also has ventured into making foodstuffs and TV production. Businesses with diverse portfolios attain a high degree of sustainability since even if one segment fails, another will cover the losses. On the other hand, Magnolia’s weaknesses include the lack of proper managerial structures. The business is attached to its owners such that operations stop when they are absent. For instance, at some point, Chip and Joanna considered leaving the company to focus on raising their children.

Opportunities Presented by the New Show

The new show will offer comprehensive marketing opportunities for the Magnolia brand’s offerings. Apart from home flipping, the new TV series will allow them to market their interior décor business. Also, the company will gain revenue to be paid by TV stations where the show will air.

Challenges       

Given the pace at which the Magnolia brand is growing, it will likely face capacity issues. That happens when a business grows significantly but fails to build the capacity to fulfil customer orders. Given the rate at which the Magnolia brand has grown, there is a need for more capacity building. Another challenge likely to be encountered by the brand is upholding customer service. In a world where consumers expect instant gratification, satisfying their needs entirely is a tall order. There is a need for Magnolia to deploy consultancy to improve services.

Measures to Determine the Success of a Show

One effective way to determine a TV show’s success is to survey the target audience for feedback. An organic audience provides authentic feedback about a TV show, which goes a long way to motivate others to watch it. Some sources of external evaluation include word of mouth, awards, and reviews by top websites.

Feasibility of Continued Success

In the future, it is evident that the Magnolia brand is likely to succeed. A key success factor that will contribute to the brand’s growth is social media marketing. Joanna, one of the proprietors of the Magnolia brand, has a substantial social media following of nine million followers. A single post often attracts one million likes; if they leverage that, they will attract more clients.

References

Shatilo, O. (2020). The Impact of External and Internal Factors on Strategic Management of Innovation Processes at Company Level. Ekonomika, 98(2), 85–96. https://doi.org/10.15388/ekon.2019.2.6

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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:

Magnolia Brand Case Study Analysis

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 the ability of Magnolia Brands to continue to be successful? Why?