Strategic analysis of a niche retail start-up

This paper is a strategic analysis of a niche retail start-up company focused on selling decorative pillows to North American market through online and in-store channels. The firm is relying on a differentiation strategy to achieve competitive advantage in a market crowded with multi-category home décor retailers. There are limits to the amount of revenue that can be generated through the company’s retail store, and online sales growth is dependant on sustained internet marketing success. The company must be strategically opportunistic in its pursuit of long-term growth. Additional retail stores, wholesale and custom services are all being considered but would require the development of new internal competencies and a potential shift in strategy. In the short-term, the company must be careful not to become distracted and must frequently review its activities to ensure they are aligned with the current strategy. Where necessary, adjustments should be made to enhance strategic fit.