该策略提供了更高程度的客户忠诚度，这种根深蒂固的客户忠诚度导致其他组织失去了直接竞争的动力(Lynch, 2012)。追求差异化战略的公司可能有能力将高成本转嫁给消费者，因为没有替代产品。Wolseley应该采用这一策略，针对他们所认可的相对狭窄的市场细分，集中并调整广泛的产品开发实力范围。这里可能面临的风险包括目标细分市场的变化和模仿。此外，对于来自广泛市场的成本领导者来说，调整产品从而能够直接竞争可能是很容易的(Morschett et al . 2015)。下图为波特按照三种一般策略进行的五力分析:
开发增强的和强大的业务组合:关注和开发有能力获得市场领先地位的业务，从而提供最大的回报(Morschett et al . 2015)。
支持战略并保持良好的财务记录:使用focus战略保持良好的财务记录是至关重要的，这使得公司能够投资bolt进行收购和有机增长(Morschett et al . 2015)。从公司的宏观环境分析可以明显看出，公司加速盈利增长的重点需要放在几个方面。卓越的客户服务交付是至关重要的，公司需要不断改进，以获得更好的产品可用性，更快的柜台服务和广泛的产品范围(Lynch, 2012)。公司需要为客户提供更好的服务，而客户可以通过雇佣员工和雇佣行业内最优秀的个人来实现这一点。
Wolseley UK is a leading specialist organization catering to heating and plumbing need. The company has built its business through people based quality which allows excellent services to foster across the organization allowing the company to maintain strong relationship with customers as well as vendors (Morschett et al 2015). The company regards itself as a relationship enterprise so it wants to ensure that it is meeting all the needs of the customers in a better way than competitors. This implies to deliver correct products at the correct cost and at the correct time (Lynch, 2012). It further implies development of customer based long term relationships. Most of these consumers are contractors.
The scope of the paper will further lie in proposing a plan for change management that should be implemented as per the strategy newly provided. This would also incorporate implications for leadership.
Choosing appropriate strategy from the feasible options
The strategy offers customer loyalty of higher degree and this entrenched customer loyalty leads towards demotivating other organizations from directly competing (Lynch, 2012). The firms that pursue a strategy with differentiation focus might have the ability of passing high costs over to the consumers as there are no substitute products. Wolseley should adopt this strategy to focus and tailor broad product development strength range with a relatively narrowed segment of market which they acknowledge properly. The risks that can be faced here include target segments changes and imitation. In addition, it might be easy for a cost leader from broad market to be able to adapt products so as to be able to compete directly (Morschett et al 2015). The following figure depicts porter’s five force analysis in accordance to three generic strategies:
Focus strategy has been selected for Wolseley and a plan for change management will be introduced for this strategy.
With this strategy, the company can set its strategic objectives at the following:
Developing enhanced and strong business portfolio: Focusing and developing businesses that have the capability of gaining leadership in the market in turn providing with maximum return (Morschett et al 2015).
Driving performance in a systematic manner across the company: Driving revenue growth as well as expansion of margin.
Accelerating growth profitably: Growing the business in a profitable way along with driving growth in a fast way in comparison to the other competitors is essential (Lynch, 2012). In every business, the company can aim at above average growth rate when viewed in terms of market share by offering good service to the customers for gaining higher customer business share.
Driving business model evolution: Operating the most efficient operational model with focus over suppliers, supply chains and operations from different branches.
Delivering synergies for the group: Embedding good practice and achieve efficiency for cost through functional excellence based share across the company
Underpinning strategy and maintaining it with strong financial record: Using focus strategy to maintain strong financial record is essential that allows the company to invest in bolt on acquisition and organic growth (Morschett et al 2015). From the macro-environment analysis of the company it is evident that the focus of the company for accelerating growth profitably focuses over several levers is required. Customer service excellence deliverance is essential and the company needs to work at consistent improvement with regard to having better availability of its product, faster service at the counters and a broad range of product than the competitors (Lynch, 2012). The company needs to deliver enhanced service to the customers who can be done by engaging the employees and employing best individuals within the industry.