Essay on Martha Stewart
- Summary of Opportunities and Threats, Strengths and weaknesses
- Unite publishing, television, merchandising and the internet under one roof to earn more.
- Develop new TV shows and multimedia packages for more revenue.
- The hiring of new management in 2001 to boost the website profits.
- Acquiring new money making avenues such as The Wedding List to drive revenues up in 2001.
- The addition of Martha Stewart Living satellite radio and the partnership with Warner Bros to produce DVDs from past shows.
- Licensing partnerships for kitchen ware with a famous chef and homebuilder for their home products, Kodak, Yahoo and branded flower partnerships saw a boost in revenue.
- The move to make MarthaStewart.com the best website.
- Martha Stewart Cooking School and Martha Bakes TV shows were a good opportunity to recover lost glory.
- The company almost always was able to employ pros at their top positions which were a good move.
Strengths Essay on Martha Stewart
- Martha Stewart’s childhood helping her father and her background as a model and caterer helped to create the icon that would later become a force.
- Her founding of the TV show and magazine Martha Stewart Living and Martha Stewart Weddings.
- Martha Stewart Living ad pages resulted in a 23 percent increase in revenues.
- As a public company its shares increased.
- MSO had high quality home designs.
- 2005-2007 saw ad pages in ‘Martha Stewart Living’ increase and ‘Body+Soul’ magazine increased revenues by 54 percent.
- After the redesigning of Martha Stewart.com by Gersh, the site won numerous awards for good content.
Weaknesses-essay on Martha Stewart
- The slow growth in revenue and falling of net incomes in 2000.
- Their website losing a lot of money despite the company investing in its contents.
- Not being able to attract many investors in terms of advertisements resulted in falling net incomes.
- Poor planning that led to the fall of ‘Blueprint magazine’ within a year.
- Failure to be consistent with young consumers and losing them to their competitors because they could not provide content to woo them.
- Failure to fit in reality TV shows that were gaining momentum at the time and the failure of their show ‘The Apprentice: Martha Stewart’ did not help matters.
- Overdependence on its publishing sector meant that other sectors continued to perform poorly.
- Major layoffs and severance payments.
- The resigning of 5 CEOs within a period of 10 years.
- Martha Stewart seemed always to have some tensions with her executives which did not help much in improving morale.
- The merchandising business never really grew despite heavy investments and decision making the company put effort to.
- The biggest weakness of all for the company became Martha herself. Often blaming the board and her employees for all the trouble but never herself. She did need to see what she was doing wrong herself.
- Competition from new comers like Rachel Ray that offered quick solutions.
- Competition from better retail stores like Walmart to MSO’s outlet of choice Kmart.
- Kmart, there biggest sales outlet seeking bankruptcy protection and suing them in 2002 lost the company some revenue.
- The loss of $75.8 million in 2005 and continued loss in 2006.
- Competition in merchandising, the most promising idea from MSO, saw the company lose business to Walmart.
- The recession of 2008 hit their home products hard resulting in losses.
- The quitting of senior executives board members was a blow.
- Reshuffling of the board members and new appointments left the company more confused and its popularity dwindled further.
- Many of their new shows were flopping and their major decisions often cost them.
- Negative publicity often with Martha at the center of it such as her time in prison often did not help the company image.
- V. Identification of Strategic Intent and Mission.
A company’s strategic intent involves what they want to do and why they want to do that particular thing. Strategic intent has a hierarchy that is vision, mission, goals and objectives. Martha Stewart Omnimedia definitely had all these even though at some points it failed at thoroughly accomplishing them.
Vision Essay on Martha Stewart
To be the leaders in Publishing, Internet, Broadcasting media platforms and Merchandising product lines.
MSO is a company that thrives and excels in publishing, merchandising, internet and broadcasting media platforms. We are keen on producing low-cost products for consumers mainly in the home sector and providing quality products.
Business model-essay on Martha Stewart
A business model ascertains sources of income, desired customer base and financial details. Martha Stewart Living Omnimedia had all these strategies in place. It was clear that they wanted their sources of income to be from publishing nationally and internationally. They were to make their published materials such as Blueprint, Martha Stewart Living magazine, Martha Stewart Weddings, a success story and make them the most read media in the United States and beyond.
Merchandising their products through the best stores in order to make the most sales was their other promising idea. They signed contracts and deals with Kmart stores to sell their home products, home and garden gear at Home Depot, pet products at Pet Smart, branded foods at Costco among other to make sales by all means.
Broadcasting media platforms was their other source of income with television shows for cooking and how to do stuff offering those good ratings through which advertisers would be willing to invest in.
They also invested in the internet which was first rising especially among younger consumers and by having online shows and content, more income would be established.
Their desired customer base was initially with the more mature crowd but they had to extend their reach to the younger consumers if they were to compete with their upcoming rivals. The struggle to cater for the young masses was however not as easy to accomplish.
Their financial details were always published even when they made a loss which was both a good thing and a bad one. Bad because it decreased their popularity most of the times but good because it was a learning opportunity for them and it showed that they valued transparency.
Goals and Objectives
- Sell more multimedia packages.
- Develop new TV shows.
- Reducing heavy dependence on publishing.
- To be a public company with a huge share price.
- To keep raising ratings in all our lifestyle TV shows.
- Generate good revenue from advertisers and product sales from our online content.
- Make MarthaStewart.com the best to-go to website.
- Employing people with a vision and background in television and magazine to propel the company forward.
- To appeal to the old as well as young consumers with relevant content.
- Making high-margin, low-cost licensing deals in all categories.
- To be the best producers of all products that defines a home like dinnerware and furniture.
- Expand from the other avenues such as office branded products.
- Expand into the international market.
- Strategy Formulation and implementation (Recommendations)
- Martha Stewart having the company named after her should play a more proactive role in its success like aligning her paychecks with reason to the revenues the company is making.
- She also ought to cease employing so many close family members in a public company; it does not sit well with the rest of the employees.
- Her lifestyle that is paid for by the company is excessive and should be cut down.
- Martha Stewart should also protect herself from further scandals, they damage company profile.
- The company needs more shrewd negotiators if it is to make progress in sales.
- Analysts have always likened her fans to a cult; the company should tap into the fanatism and brand all their products, fans will buy into anything if the products are consistent and continuously innovative.
- The board is sacred and should be protected from constant reshuffles and falling out as this creates insecurity and people will not perform their jobs effectively.
- The company needs to expand to other countries, it is about time.
- Just like its competitors learned from them, the company ought to investigate why these same companies are overtaking them and beat them in the race.
- The company also should keep up to speed with changing technology and not change way after others have beat them to it.
- The company has suffered in one person holding most of the shares and therefore making all the decisions. The shares should be sold to have more shareholders and more voice of reason.
- The poorest performing sector was merchandising because of the failure of Kmart. The company should employ new merchandising experts.
- The MSO is a brand that needs to protect itself from future scandal.
- It is a strong competitor in providing home equipment and can better this by expanding into the manufacturing of the simpler stuff instead of outsourcing.
- More product offerings should be made.
- Employees make a company and MSO needs more employees to replace those they slashed if the work is to be done.
- MSO should offer better security to their employees by promising them job security.
- New licensing deals made should always be evaluated monthly to show if they are profitable or not. If they are not working they should be cut off.
- The company also hardly involved employees in its decision making and this cost them because the employees may be the missing link to all this madness.
- When internet horizons expand, the company should be timely.
- When consumer preferences change, the company should expand to fit them in.
- If something is not working out it is time to move on to the next big idea, sticking with old shows will not help the company.
- It may be time that the company considered rebranding altogether.
How Essay on Martha Stewart
- To boost sales, the company ought to make sufficient research into new ventures well first before diving into them and making loses.
- The company should be law abiding and distance itself from false statements and interfering with justice.
- The company should maintain partnerships that are working as well as seek others out to make progress.
- Guaranteed royalties with partners should be thorough so that the company does not make losses from overpayments and also they don’t injure the partners.
- Advertisement seems to pay well for this company and should be pursued in all sectors, online, on print or on blogs. Anything that will catch the advertiser’s eye.
- Compensation has caused major problems as the company doesn’t seem to have a concrete structure. It should be in line with the revenue the company is making if profits are to be made.
- Trading shares are low and employing financial experts to look at the situation will help sell shares.
- The company may need to diversify its products to other personalities not just Martha’s products as people seem to have moved on. People like diversity and they may just win back new viewers.
- The company needs to have employees sign contracts of work time durations to prevent them from resigning when they feel like it.