Martha Stewarts strategy style based on Michael Porter’s three key principles of effective strategic positioning is broad needs, many customers. This strategy is used to create a unique valuable position, with broad needs it is the varying domestic based books, supplies, merchandise and etc, that she sells to many customers who look to her as a domestic role model. In August of 2005 New York Times, an article mentions how her ten months in jail has given her time to think, along with come with the decision that the company will broaden their services to develop “a line of branded homes designed by the company and inspired by her aesthetic,” (Carr, C1).
Each strategy requires a trade-off in competing, Martha Stewart is very meticulous with details which can take time, allowing her competitors to release a product before she sees it fit to release hers. This costs her loss in profit, but with her eye for detail and good material when her product does come out she can make back the profit lost, because her customers known that when they buy her product they are being a quality item. Although, taking extra time to make sure the product is close to perfect as it can be, costs them some sales and the awe effect of being the first one to sell it on the market, this is the trade-off to continue to uphold the brands name of making good, long lasting products; which has also gained her a wide variety of loyal customers.
Not all strategies “fit” within the companies activities, some are hit and misses such as when Stewart placed Charles Koppelman to the board, where “he became chairman of the board in 2005, where he negotiated a paid consulting arrangement for himself. He was viewed as enabling Stewart’s self-regard as much as tending to the company’s well-being” (Laya ), causing much more conflict within the company. While Stewart’s decision to expand Martha Stewart Living to sell a Martha Stewart Everyday line at KMart stores, helped jump start her company back in 2005, along with comeback in the televised world with shows such as; The Martha Stewart Show, and The Apprentice. This proved to be a good “fit” for the company as it also furthered the companies profits because it helped promote two of the new books Stewart was releasing that year.
The decision making style is how an individual perceives and responds to information and the reflection made. Martha Stewart uses a rational decision making style, because she is shown to identify all possible aspects of a situation to identify any problems, existing or probable, before creating a solution and then re-evaluating the situation to make sure the best possible decision was made for the company and customer. In 2005 Martha Stewart announced and released her Martha Stewart Baking Handbook, the first in since six years ago, along with a book titled The Martha Rules. The six year gap between book releases, shows Stewart’s attention to detail, and rational attitude, having to look over the both books and...