Build-A-Bear Workshop

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VRIN Analysis of the Resources. An in-depth analysis of the enterprise resources and capabilities indicate they are valuable, rare, costly to imitate, and organized to capture value. Firstly, the company’s unique customer centric approach has been the prime cause of success in the business. Moreover, the company enjoys patented production rights of customized toys thus this method is of value in the enterprise. Lastly, there is no other company producing customized toys, and thus this method is rare and a basis of competitive advantage.

Financial Analysis of BAB

Despite the decline in profits as earlier perceived, BAB remains to be financially sound. The company has a strong asset position of $ 300,152 which is lower than $339,531 in the year 2007. Notably, the firm has remained relatively in the same position with only some slight declines in some entries. Moreover, the company has no long-term liabilities insinuating that it’s capable of financing operations internally. Nonetheless, my view is that the corporation should finance additional operations with debt and other long term liabilities, as this will leverage the company while reducing the costs of taxation.

BAB’s Business Level Strategy

Notably, BAB follows a consumer-centric approach and brand building as their core strategy. In lieu to this, customers are allowed to design, and walk through the methods of making their product. This creates healthy relationships with clients, and it’s not a wonder that the company has so many returning customers. Additionally, the company values their customer feedback, and they heavily enquire on their customer’s experiences in the firm. In a nutshell, the company operates on the premise of identifying a target group, meet their needs fully and assuring maximum satisfaction.

BAB’s Corporate Level Strategy

BAB is of the belief that businesses should be different and unique to gain some competitive advantage in the market. For this reason, BAB’s corporate strategy is differentiation and focus. While their BAB’s competitors American Girl and Vermont Teddy Bear continue selling their toys in the traditional way. BAB has adopted an entirely different direction, as earlier identified with their customer-centered approach. In this way, the company has remained profitable, though with little or no growth. Moreover, the company is better positioned to corporate with other firms that draw the interest of their target customers. This includes sporting companies; precisely baseball, hockey, and basketball, as BAB can provide new methods for fans, in cheering up their teams uniquely.

Can BAB Expand In the International Market?

It’s almost no question that BAB should expand to international setups. Their methods of business are unique, and the company could gain significant competitive advantage in such setups. Additionally, the operations of the firm have been based majorly in their home country, and there is need to exploit other potent markets. Furthermore, the company will diversify and increase their profits. As earlier identified, different aspects have led to the persistent decline in earnings of the company for the last four years. This can be attributed to concentrating on one region, and thus BAB should go international.

What Alternatives Does BAB Have?

Notably, BAB has not exhausted its options. Perhaps, they are even bound to pull more surprises as their CEO Maxine Clark did during the inception of the business. In my disposition, certain areas are not entirely embraced by BAB. Firstly, the company needs to focus on the preferences of their target groups. In this light, they need do develop stores that are attractive to children and their close associates; precisely their mothers. Additionally, the company needs to fully commercialize the selling of their products to other target groups. Conversely, if all these methods do not work the company could shift their productions with the changing trends and preferences.

Criteria for Making Decisions in BAB.

Primarily any decision to be implemented by BAB should be economically and financially feasible. A typical approach for developing such an arrangement is detailed below;

Intelligence stage. At this juncture, BAB should strive to develop all possible information about a potential difficulty, problem, target market, and product. Essentially, this is answering the “who, where, when, why and what” questions.

Design stage. At this stage the company develops all possible solutions to the aspects identified above. This may include any feasible options, choices, and alternatives that the company may undertake.

Choice stage. After identifying all possible options, choices, and alternatives, the company chooses the best option or alternative among all determined in the selection stage.

Implementation stage. This is the last stage that involves actualization of the defined plan and a review of its progress in the company.

A Matrix to Determine What BAB Should Do In The Future

A typical decision-making model to be used by BAB is the BCG matrix. This is detailed as follows

Table 2: BAB’s BCG matrix

Cash generation

Question marks

Customized bears and animals

Gift cards

Stars

Online games

Customized gifts

Dogs

Customized clothes

Customized accessories

Cash cows

Stuffed bears and animals

Customized gift cards

Market share

How Should BAB Implement Its Decision In Future

Notably, there are four identified areas in this matrix differentiated with respect to market share and cash generation to the company. The dogs and questions marks represent those products that are less profitable to the company. Perhaps, they may be the products stagnating the company’s profit

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