Respond to each classmate 100 words or more
Kleenex tissue was invented as a means to remove cold cream, and Hollywood stars backed the product. The product was being used as disposable handkerchiefs; Kimberly- Clark’s strategy changes should adopt are product differentiation. The text describes strategy as “simple—to increase performance, figure out a way to increase P (price) or reduce C (cost) (Froeb, 2018, pg 134). Another definition of strategy found throughout the text is “the art of matching the resources and capabilities of a firm to the opportunities and risks in its external environment to develop a sustainable competitive advantage” (Froeb, 2018). Companies develop strategies to keep one step ahead of forces that may erode profit. Strategy is basically gaining sustainable competitive advantage, and that is exactly what Kimberly-Clark needed for Kleenex. Their strategy should have been to give the people what they want which was a disposable handkerchief. Ways to do this would have been to make them soft, no shedding during use, and a sound smell that would satisfy consumers. Product differentiation is what makes your product stand out to the target audience and how your company distinguishes to sell it versus other companies. Kleenex could be advertised as both a disposable handkerchief and to remove cold creams. Ways to advertise this product better would have been for the company owners to have the Hollywood stars explain exactly what the use of the product was for, and maybe state these things on the products packages. Kleenex has been around for many years and used by all age groups. Key strategies that have been used in the past were very beneficial. I find myself buying kleenex everytime I’m at the store, especially during this pandemic.
Change of a strategy in business involves examining the current practices in a firm and analyzing where and when changes should be done. It involves risks and therefore, a business should plan ahead before making any adjustments. After Kimberly-Clark realizing that their product, Kleenex tissue is not being used to remove cold cream as it was intended to be used but instead, it is being used as disposable handkerchief, the company has to adopt different changes in its business strategy. For Kimberly-Clark case, the company need to undergo a transformational change which occurs when a company recognizes that there is need to adopt a completely new case of action. It aims at achieving a known state which is different from the original one. The change that the company needs to adopt is spontaneous and not planned because the stakeholders of Kimberly-Clark made a decision which was unrelated to the emerging issue. They did not foresee that the tissue can serve as a temporal handkerchief, but the market has forced them to re-strategize.
The company needs to make changes about the uses of the tissue, change its marketing strategies, supply and even the packaging. For example, the company needs to change its advertisement strategies which included endorsements of celebrities to promote Kleenex tissue. The celebrities were advertising the tissue as a product which is used to wipe creams and since, the product use has changed, new advertisement modes should be used. Kimberly-Clark can alter packaging and information about Kleenex tissue and include that the tissue can be used as both cream remover and disposable handkerchief. It will increase market for the tissue,because customers intending to use the tissue in different ways will purchase it. The company can also increase its supply and distribute the tissue not only to restaurants but also to general shops.