Week 3 Discussion – Strategy composition

One of the most essential and critical aspects of formulating a strategy is understanding
the competition. For that reason, part of the information that John & Deborah’s company collects
is an analysis of its top 2 competitors. The company had already collected industry information
through Porter’s 5 Forces, where several competitors in the furniture industry had been identified.
For this analysis, 2 competitors will be analyzed, and their SWOT analysis will be discussed.
This report also includes an analysis of the company’s competitive strategies that it can use to
build a competitive market profile. Two of the companies considered in this analysis are Kinwai
Group and Aurora Group.

Kinwai Group

Kinwai Group is headquartered in Guangdong, China, and manufactures home and office
furniture (Kinwai, n.d.). The Kinwai Group’s strategic advantage is its overseas operations and
unique styles.
Kinwai Group SWOT Analysis
Kinwai Group’s strengths are that creativity, experience, and dynamism. The company is
an industry leader and focuses on satisfying customer needs through creativity, and its dynamic
style allows it to fulfill customer needs. Its weaknesses are its weak business model that can be
copied by competition. Opportunities are that it operates in a constantly growing industry, and
this means the company can continuously grow and monitor its growth by marking it against the
market.The threats that the company faces are slow technology and innovation. Despite the
company operating in a highly technological country, it has been unable to reciprocate the same
in its operations, putting it at risk.

Aurora Group

Aurora Group originated in Taiwan but has expanded operations into mainland China
(Aurora Group, 2020). Its significant strategic advantage is that it has diversified products, and
diversification ensures that the company nets higher revenues and stays ahead of the competition
curve.
Aurora Group SWOT Analysis
Aurora group’s strengths are that it has invested heavily in technology. The company has
been operating for over 50 years and covers a considerable market share in China. Like Kinwai
Group, Aurora has a weak business model easily imitable by competitors. The industry is
hypercompetitive and dynamic, meaning no company can sustain a competitive advantage for a
long time. The most significant threat that the Aurora group faces is competition. The Chinese
and Taiwanese markets provide significant competition that threatens the company’s ability to
solidify its customer base. An opportunity is venturing into emerging markets. Emerging markets
allow companies to increase revenues and gain new market share. It also provides an opportunity
for companies to explore untapped potential.
John and Deborah’s company’s strategic position
The company can focus on innovation as its key strategic position. For this strategy to be
successfully implemented, the company must require its functional areas to coordinate and
combine efforts. For example, the finance department would have to fund such innovation,
research and development would have to drive the innovation, operations to actualize the
innovation, and marketing to advertise it (Sakchutchawan et al., 2011). The company would also

need stable leadership to oversee the innovation. Innovation can help the company remain
competitive.
Secondly, the company can also remain competitive by leveraging customer experience
(Pei et al., 2020). In the furniture industry, customers look for certain qualities such as style,
comfort, or unique design. Therefore, John and Deborah’s company has to ensure that it is
continuously finding ways to provide these qualities to its customers.

References
AURORA GROUP. (2020, November 22). Company profiles. Auroraworkspace.Com.
https://www.auroraworkspace.com/our-company
Kinwai Group. (n.d.). Supreme-Kinwai-Kinwai Humanity Furniture Official Website.
Kinwai.Com. Retrieved August 24, 2022, from
http://www.kinwai.com.cn/en/kinwai_9.html
Pei, X. L., Guo, J. N., Wu, T. J., Zhou, W. X., & Yeh, S. P. (2020). Does the effect of customer
experience on customer satisfaction create a sustainable competitive advantage? A
comparative study of different shopping situations. Sustainability, 12(18), 7436.
Sakchutchawan, S., Hong, P. C., Callaway, S. K., & Kunnathur, A. (2011). Innovation and
competitive advantage: model and implementation for global logistics. International
Business Research, 4(3), 10.