Martha Stewart Living Omnimedia Case Study

Martha Stewart Living Omnimedia(MSO) has been facing new competition and changing markets on all fronts. Rivals have been taking market share causing them to revaluate their business-level strategy. The purpose of a business- level strategy is to outperform your competitors. Strategy is about how you are going to acquire resources and develop capabilities in order to develop a competitive advantage. MSO is facing many trade-offs due to changes in the market. They are trying to develop a business- level strategy that will allow them to compete and become profitable again. This can very difficult because managing a business and taking into account the value of stakeholder is crucial for success and long-term growth. MSO business-level strategy should integrate and coordinate of obligations and actions the firm is going to implement to gain a competitive advantage. MSO needs to set goals a figure out how to achieve …show more content…
It is crucial they know what their capabilities are, which means they must assess what assets, resources, and product attributes should be focused on. MSO has many existing and new competitors they need to be conscious of. High competition in the industry can or will have a direct effect on market share and product prices. There are many new entrants because of how easy it is to enter this industry. When discussing new entrants MSO must find ways to make them less favorable and prevent them from entering. Another aspect MSO should take into perspective is the threat of substitutes. There are many alternatives to MSO as especially as people spend less time wanting to cook and innovation increases. In this particular industry, consumers have major impact of the price. Buyer power is very high when dealing with this industry. Also the knowledge of the consumer is increasing causing them to know about other options like Rachel Ray or different cooking magazines they can subscribe to for