Maximizing Value Creation in the Party Supply Industry: Key Strategies for Competitive Advantage

Abstract

Interim Report #1 #1 “Key Company’s ability to create value has been trending from $27.9 billion in 2019, $22.5 billion in 2020, and $26.3 billion in 2021. The drop and rise were due to the Covid 19 pandemic and low revenue compared to the pre-pandemic period. The ability to capture value declined. The operating profit margin fell by 10% in 2020 and rose by 12. 8% in 2021. #2 Competitive Strategy: Business Model – Multi-channel retailing, integrating the brick-and-mortar retailing operations with the power of the website, customers can order custom printed balloons, party goods, and even novelty tee shirts online and then pick them up in a store. FTS operates an e-commerce website offering over 120,00 items on a rotational basis. Customers can choose to buy in the store or buy online. #3 Sources of Competitive Advantage: Resources and Capabilities. Senior Management (Leadership) with over 20 years of experience. Design patents- propriety designs, licensed designs, and value brands Ability to ship to distribution centers rapidly. A robust inventory management system Ability to capture the best retail locations Innovative R&D technicians well-trained customer support personnel; Customer First, It Can Be Done, People Matter, and Celebrate is a theme that makes FTS focused. Motivated workforce FTS Strong Supplier and distributor relationships of over 20 years. The three most valuable resources for competitive advantage are: 1)Patents 2)Innovative R&D Technicians 3)Ability to ship conveniently to retail stores. #4 External Analysis The producers are manufacturing firms locally and internationally and paper and plastic manufacturers in Asia. The suppliers are producers of stickers, gift wraps, wall décor, and other miscellaneous paper décor, mylar balloons, paper plates, napkins, tableware, and plastic ware. The buyers are retailers. The substitutes in the industry are generic and value-based party supply products. The two strong competitive forces in this company...