C.K Tang Company-Business Analysis

C.K Tang Company-Business Analysis. A limited company called C.K. Tang deals in merchandise and retail sales both inside and outside of Singapore. The company also engages in the food catering industry, which operates in several cafeteria locations. The business was established in 1932 and has grown through time (Barney 2014,p.36). Through its shops and stores, C.K. Tang Company sells lifestyle products. Over time, the business has improved its ability to compete with rivals like Metro Holdings and Isetan Company (Barney 2014,p.41). The corporation has been dominating the retail sector for the past few years as a result of effective corporate strategy. According to the financial statement in last year, the company gained a revenue of $65.595m while the total companies’ equity was $266.2907m(tangs, 2017).Annually, the company earns an approximate of$ 50-100m, yearly(tangs,2017).The high level of revenue has been increasing drastically. Business strategies have enabled the company to maintain its relevance in the market, as the leading multi chain company in the industry.

One of the most effective strategies that have been used continuously by the company is continuous rebranding and repositioning strategy.Repositioning strategy refers to changing the identity of the product in accordance with the target market(Cusumano et al.2015, p.560). The company sets its outlets with the aim of targeting a certain group of customers. For instance, in Singapore, there is an outlet that specializes in children’s items as well as the most fashionable clothes. This has enabled the company to build its popularity due to the specialization of a particular product in a certain outlet and locality. The fashionable clothes are in accordance with the taste of the customers. Additionally, the firm has shifted some of its’ products to their new outlets so as to focus the minds of the customers to that particular product.According to Cusumano et al.(2015, p.561), the taste and preference are a motivating factor in a customers’ willingness to buy. The repositioning strategy has enabled the company to attract new customers as a result of specialization. Consequently, the company’s unique identity has increased the sales of the company over the years.

Training and employing skilled customer service is another strategy that is used by C.K Tang to maintain their customers as well as their corporate image. New employees undergo thorough training which is done by the human resource and the supervisors to ensure that the employees serve customers diligently, in accordance with the company’s policy and culture. The cashiers are trained on how to handle cashier procedures to enhance a smooth and efficient turn over (Saeidi 2015,p.341). There are also separate staff purchases which are different from the customer’s sales system. Honesty is a key virtue in the operation of the shops. The company does employ honest shoppers.The shoppers act as undercover personnel whose role is to check on the sales staff and ensure that the staff work according to the shop’s policies and procedures.

Additionally, the tills are often checked from the auditor’s cash register rolls. This has ensured a transparent accounting system for the company hence, reducing the risk of funds embezzlement. Further, responsibilities are designated to ensure a smooth workflow in the outlets. Further, the employees are also trained on how to accept deliveries by following the right procedure. The company also provides a conducive employment for the employees in term of a clean environment a good pay. The employees are also given breaks even though they work in shifts. Training is also done on how to handle a customer in cases of misunderstandings as well as to handle emergencies when accidents or hazards occur. This has increased the performance of the employees as the customers are treated with courtesy hence maintaining them.

C.K Tang Company has recently upgraded their infrastructure to increase productivity. Upgrading the system is essential to enhance the performance of a company, and prevent the use of outdated systems(Bharadwai et al.2013,p.60).The company uses a system known as point-of –sale(POS) which ensure an adequate and smooth communication between the store staff and the customer as they purchase. A positive transaction creates a good impression to the customer and hence developing a positive attitude to the customer. The POS system of the company is user-friendly such that the staff is able to navigate with simplicity and promptly to enhance efficiency. A robust wireless network to enhance communication within the store has also enhanced fast communication. The software used by the company are inventory management programs, which enhances and controls the inventory and further allows the stores to predict the trends in sales. In the retail sector, there are particular times where the retailers experience low sales as a result of economic effects or the changes in the consumer demand. Hence, the inventory programs provide a prediction of the changes in sales, allowing the store to make appropriate measures or come up with strategies to increase the sales such as gifts and vouchers. This strategy has facilitated in the good performance of the company.

The fashion trends are seen to drive the demand of the consumers(Bharadwai et al. 2013,p.64).The profitability of a company depends more on the effective marketing strategies as well as customer traffic. C.K Tang is a company that has been in the industry for the last eight decades. Hence, being a large company, the company has continuously enjoyed economies of scale. The economies of scale occurs in term of purchasing whereby the company gets discounts from their suppliers, in distributing products to the various outlets as well as adequate marketing. Selling the latest and fashionable products is a strategy that has maintained the customer’s traffic. Further, Tang company has the mandate to give back to the society through the corporate social responsibility. The company often gives donations to the less privileged in the society.

Loyalty management is another strategy that has been adopted by C. KTangs Company. The company is wholly committed to rewarding its customers through exclusive privileges and through the value added promotions.The program of loyalty management is also another strategy used by the company. The loyal customer often enjoys benefits through the noncredit based Tangs Fashion Card and the credit based Tangs Platinum Visa(tangs,2017). Additionally, the program enhances shopping experience to the customers through exclusive benefits such as sale preview, and workshops which are attended by the cardholders. Moreover, birthday treats and shopping rebates are also available. This has created a good rapport with the customers and hence maintained loyalty.

In conclusion, over the last five years, C.K Tangs has adopted various strategies which have enabled the company to maintain competitiveness in the retailing industry.The choice of the strategy to be used depends on the type and form of business. Tangs company being a retailer has focused more on the selling fashionable clothes that are highly demanded in the market. This has enabled the company maintains its sales. Investing in customer service is also essential so as to create a good rapport between the company and the customers. Tangs Company trains the employees in different areas such as handling inventory, purchases and handling the customer with courtesy. In order to retain old customers and attract new once, the company holds workshops with their loyal customers, the customers are given gifts so as to encourage them to keep visiting and purchasing from the Tangs outlets. Hence, the discussed strategies have enabled the company to remain competitive in the market.

References

Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson Higher Ed.

Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.

Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward a next generation of insights.

tangs.2017.[online] Tang Available at https://www.tangs.com/[Accessed 25 Aug.2017]

Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), pp.341-350.