Hamilton Beach Brands Holding Company Cooperative Strategy
Hamilton Beach Brands Holding Company performs as a holding company and through its subsidiaries, it designs and markets electric households and specialty housewares appliances together with commercial products for bars, restaurants, and hotels (Hamiltonbeachbrands.com, 2020). The company serves consumers, retailers, and commercials in the United States and beyond. This Company Cooperative Strategy proposal outlines how the company can enter into both business level and corporate level corporate strategies to increase its product and market share. A corporate strategy refers to a strategy whereby firms work together to achieve a shared objective.
Business Level Cooperative Strategy
Through Business Level Cooperative Strategy, Hamilton Beach Brands Holding Company will share its resources with other corporate capabilities with other firms to create a competitive advantage in the form of new products and services. In this way, the firm will also share the cost of producing a new product, and help it intensify and attain flexibility in terms of diversifying its operations and strengthening its position with respect to the firm’s competitors. It will facilitate the company’s market growth. Hamilton Beach Brands Holding Company can implement Business Level Cooperative Strategy in three different way, which includes diversification, joint venture, and horizontal integration.
Horizontal Integration>>Hamilton Beach Brands Holding Company should some of its diverse channels such as Fast shop and Bed bath and beyond to increase its customer base.
Joint Venture>> Hamilton Beach Brands Holding Company should have joint ventures, especially in the international market, to significantly expand its opportunity.
Diversification>> Hamilton Beach Brands Holding Company should diversify its product set and start producing new lines of products such as coffee airports, refrigerators, or even home appliances.
Corporate-Level Cooperative Strategy
Hamilton Beach Brands Holding Company should use the Corporate-Level Cooperative Strategy to help the firm diversify in terms of products offered, the market served, and or both. The strategy should help the company increase its competitive advantage and continue to offer unique products and services to its customers. According to Wheelen et al. (2015), Corporate-Level Cooperative Strategy is a situation where a business seeks to cooperate with another firm to find the competitive advantage together by not only creating quality products but also the entire experience. Hamilton Beach Brands Holding Company can create a Corporate-Level Cooperative Strategy in three main ways, including diversification alliances, synergistic alliances, and franchising.
Diversification Strategic alliances>> is a Corporate-Level Cooperative Strategy whereby the firms share some of their resources and capabilities to diversify into new markets or products. Therefore, Hamilton Beach Brands Holding Company should enter into strategic diversification alliances to diversify it’s market and product portfolio.
Synergistic Strategic alliances>> is a Corporate-Level Cooperative Strategy whereby the firms share some of their resources and capabilities to enjoy the economies of scale. Therefore, Hamilton Beach Brands Holding Company should enter into synergistic strategic alliances with other firms that share the same interest to penetrate certain markets.
Franchising>> is a Corporate-Level Cooperative Strategy whereby a farm (the Franchisor) uses a franchised firm as a contractual relationship to describe the sharing of its resources and capabilities with the contractual firm. Hamilton Beach Brands Holding Company should enter into franchising contracts in the markets such as the African, which the company has list penetrated.
References
Hamiltonbeachbrands.com. (, 2020). Hamilton beach brands holding company – Home. Hamilton Beach Brands Holding Company. Retrieved October 8, 2020, from https://www.hamiltonbeachbrands.com/home/default.aspx
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy (p. 55). Boston, MA: Pearson.