The Distribution Model in the Hearth Industry: A Strategic Analysis to Gain Competitive Advantage for Regency Fireplace Products

This paper presents a strategic analysis of the distribution model in the hearth industry for Regency Fireplace Products (Regency). The paper researches the business environment for Regency in North America, determines its competitive position in the industry and develops strategies for competitive advantage and steady growth. An industry analysis is conducted to determine the key success factors for incumbents that compete in the industry. Competitors are compared to explore the opportunities and threats for Regency’s distribution model within the highly competitive hearth industry. The strengths and weaknesses of Regency are analyzed, and the strategic position of Regency is presented to identify the strategic alternatives. Several criteria are established to evaluate the strategic alternatives based on the environment; management preferences, organization and resources. An alternative assessment and internal analysis are conducted to determine the strategy for Regency. In closing, a final recommendation and action plan is outlined for Regency taking into consideration the organizations change management culture. The final recommendation for Regency is for them to develop a franchise of retail hearth stores across North America. This strategic alternative will exploit the core competencies of Regency and allow them to maintain their differentiation strategy and gain competitive advantage in the hearth industry.