Balanced Scorecard (BSC) Matrix
Table 1: Balanced Scorecard (BSC) Matrix for BACHI Barcelona
Based on the contribution of Michael Porter, these strategies can be justified as follows:
Strategy in Cost Leadership
There is a low cost of human capital since the company only has two members. They also sell handbags that are less expensive than their counterparts. Finally, they use cheap and environmentally friendly materials, allowing businesses to provide better product prices. The low-cost approach focuses on creating standardized items at a low per-unit cost for price-conscious customers (Islami et al., 2020). Nonetheless, the management must invest resources to obtain a competitive edge through exceptional innovation, high quality, and sensitivity to client needs.
Differentiation Strategy
Provide unique designs and prints showing details based on real-life pictures. The more competitors there are and the number of similar commodities they offer, the less powerful a firm becomes. Therefore, a differentiation strategy asserts that a business must provide valuable and unique items or services to customers to improve loyalty (Islami et al., 2020). Generally, how valuable a company’s products are in the marketplace determines its ability to place a hefty price tag.
Focus Strategy
Focus pertains to offering a specialized service or product in a niche market. Following this strategy allows the organization to integrate various activities associated with distinction and low cost in a specific segment from which it earns higher profits (Islami et al., 2020). Women are the company’s target market; basically, those of various perspectives, both professionals and non-professionals. The company develops bags for dynamic, independent, strong, and brave ladies who are unwilling to settle for anything less than the best and want to stand out in their daily outfits.
Reference
Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking porter’s generic strategies to firm performance. Future Business Journal, 6(1), 1-15.