Durex Proposed Strategy
High CostThe cost of producing condom is high since the prices of rubber are instable in the marketplace. | Priority 2: Government advertisement restriction Condom involve sensitive issue among the sexual issue, hence a lot of country tend to ban the advertising of condom. | Priority 3: Machinery innovationTechnology considered as the strategic issue because of Durex should improve it in order to made their condom product more productivity| Priority 4: Variety of condomThe variety of condom considered as the success factor of Durex.
Therefore, Durex should concern this factor as their competitive advantage.
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| Urgency LOW Variety of condom In general, Durex condom has been label as the world quality of the finest condom. Hence, the unique competitive advantage leads the Durex brand name among worldwide. However, nowadays condom marketplace consider competitive than previous generation, there are certain brand begin invade market share of Durex condom, such as Japan brand which is 007, Playboy etc. Besides that, Durex condom packaging considered as outdated compare to the others condom brand.
The packaging of Durex condom seemingly do not following the lifestyle of consumers, because it is not creative and attractive to attract potential customers.
As the result, there are three recommended option for Durex in order to reinforce the Durex condom product quality. Option 1: Change packaging As mentioned, the packaging of Durex condom considered outdated in marketplace. Therefore, it needs to re-package in order to attract more consumers to purchase Durex condom product since nowadays package of product are considered as “5-Sec of advertisement”.
Durex believes that re-package the condom product would add new value towards Durex condom. Option 2: Add-value Durex condoms merely have a function, which is prevent pregnant.
Nowadays people looking forward the product usage, hence we would recommend Durex add-value to its condom product. For e. g. Durex could make the condom colorful and adorable. Besides that, Durex could add the “Sex-function” into condom product to make the sexual process more excitement and enjoyment, or develop it into “Recyclable condom”.
Option 3: Cooperate with competitor Nowadays, more and more corporation starts to cooperate with each other since they do realize that the competition is not the best way to achieve success in order to achieve win-win situation.
Therefore, Durex could actually cooperate with its competitor (e. g. PLAYBOY) and come out with the brand new condom with the dominant technology and feature which actually come out with both company resources. Evaluating strategic issue (RACES) (P/S: RACES Criteria: 1=Worst, 10=Best, Total marks =50)
Durex strategic issue: Variety of Condom Option 1: Change packaging| Resources| Acceptability| Consistency| Effectiveness| Sustainability | Evaluation| Rating: 8Repackaging need not invest large R&D, Besides that, Durex strong financial performance allows them to repackaging their package. | Rating: 6Remain unknown probability. The new package would be either resistance or desire to purchase the Durex condom due to its changing package.
| Rating:8Low conflict level with other strategic issue[E. g.
Durex shareholder and management look forward the profit, if the condom new package works, the consistency of the new package would higher]| Rating: 8Generally, the repackaging strategy would lead the company generate more income based on its new image. However the new packaging should be aware on its new design that would not lead the misunderstanding conflict. [E.
g. Cultural misunderstanding, Color misinterpretation etc]| Rating: 9In long run, this strategic option would bring the company new image and it might attract another segment group of people based on the designing of the package. Total: 37/50This strategic issue dominant the higher opportunity to lead Durex company into another success level. | Option 2: Add-Value| Resources| Acceptability| Consistency| Effectiveness| Sustainability | Evaluation| Rating: 4Durex is merely major in Condom, which means that if Durex really want to add-value towards it condom product, heavy R&D would be take places. (Costly)| Rating:2Customers and shareholder would resist “added-value” (e.
g. recyclable function) and they might feel uncertain toward the innovative condom. | Rating:3Since this strategy are considered as quite risky.
Durex management could not afford the consequence of the brand image damage because of the project failure. | Rating: 5Effective if the technology works and the technology could persuade and reduce the uncertainly of people.
| Rating: 2Since the Durex business developed smoothly, and the management could not afford the innovation damage the brand image of Durex in marketplace, They rather not implementing this strategy option. | Rating: 16/50Although this strategy considered as “Extremely innovation” than other competitor, it could not be implemented.
As a result, Durex should not implement this option and instead of applying other option. | Option 3: Cooperate with other competitor| Resources| Acceptability| Consistency| Effectiveness| Sustainability | Evaluation| Rating:8If Durex cooperates with other competitor, it would share the resource that is private and confidential. Therefore it would lead both companies dominant in marketplace. | Rating: 2Other company would not simply cooperate with Durex since their resource consider as their “Selling point” in the marketplace.
Besides that, it would be considered as a risky option since the “business secret” have been share with others party. It would cause Durex lose its competitive advantages in the future. | Rating: 6The cooperative would introduce the strong brand name in the marketplace, means that the cooperate brand name would catch a lot of people attention[e. g. Durex and Playboy come out with new brand name, it would dominant in their brand awareness, the dominant brand would attract more people eyesight]| Rating: 9If would be EXTREMLY effectiveness since the corporate brand would share their resources to develop a strong product.
The resources that share by both companies would believe to enhance quality and improve the weakness of the new product. | Rating: 1These strategy option probably generate the threat which allow cooperate party hostile takeover Durex. | Total: 26/50Since the Durex has been so success in the marketplace and dominant the reputation