Ulta Business Analysis
Mullins & Walker (2010), Robert Miles and Charles Snow identified four generic business strategies: prospectors, defenders, analyzers, and reactors. An organization that follows the prospector business strategy is looking for growth through aggressive pursuit of new product-market opportunities. An organization that follows the analyzer business strategy concentrates on strong core business at the same time actively looking to grow the business into related product- markets. An organization that follows the defender business strategy focuses on keeping costs down in their current market. The last type of strategy that an organization could follow is the reactor business strategy has no clearly defined strategy this is because depending on what the organization is reacting to would depend on the strategy they would follow.
Ulta has implemented a prospector business strategy. “Billing itself as a “one-stop shop” for women’s beauty needs, the Bolingbrook, Ill.-based retailer is mixing up the conventional method for distributing cosmetics and salon product” (Sciortion, 2010). They have implemented this strategy because they compete in an industry where the technology is complex and changes dramatically over the short period of time if not daily. New products are launched daily and with new products come new competitors; Ulta has been able to maintain a secure position in a relatively unstable market by offerings a wide range of products compared to its competitors. “Traditionally, beauty products were sold through distinct channels” (Sciortion, 2010). Ulta has been able to hold its position because they offer a very wide rage of products and accessories to its consumers unlike other competitors such as CVS and Walgreens. Ulta protects its domain by offering a large variety of products and services as well as a higher quality of products and much better customer service than its competitors. As well as its weekly sales that most...
References: Encyclopedia of Business. (2012). Generic Competitive Strategies. Retrieved June 16, 2012, from http://www.referenceforbusiness.com/management/Ex-Gov/Generic-Competitive- Strategies.html
Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach (7th ed.). New York, New York: McGraw-Hill/Irwin.
Sciortino, K. (2010, December 6). Ulta salon gives a beauty market makeover. Retrieved from http://news.medill.northwestern.edu/chicago/new.aspx?id=175027
Shropshire, C. (2012, June 8). Ulta to jump on kardashian bandwagon with cosmetics line. Retrieved from http://articles.chicagotribune.com/2012-06-08/business/chi-ulta-to-jump-on-kardashian-bandwagon-with-cosmetic-line-20120608_1_kardashian-kollection-k-dash-cosmetics
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