Strategic Management – The e-Design Case
Assignment Task
An ambitious, profitable, on the rise design firm, based in Copenhagen, which has an expanding base of international clients and considers itself extremely edgy, extremely revolutionary.
The phrase they adopted: “Smash the world of design”!
ESSENCE OF THEIR BUSINESS
They go deep into the “soul of the company”, the strategy of each company they cooperate with.
Key Words: IDENTITY, VALUE, ASPIRATION, GOAL e-DESIGN Strategy
INTRODUCTION TO THE CASE
In 2006, e-Design was invited unexpectedly to participate in a design competition to provide new logos and new identity for Denmark’s National Sports Team, a prestige client. The problem that e-Design faced is that they had two designs, not one.
E-Design Classical Team Denmark Logo
Based on the brief document provided by the Team Denmark, e-Design designed the following logo, but….. they did not like it very much. They found it was too classical and boring for their revolutionary and edgy identity and this logo did not represent it at all!
So, they went back to the drawing board and produced a much younger and radical design, which they called “the edgy design” and which totally reflected their design style!
E-Design Edgy Team Denmark Logo
They were enthusiastic with this one, but…. everyone agreed that it might just be too radical for the client.
The fact that they had two designs generated a huge controversy! In the end, they came up with three options for how they thought they might proceed:
Option 1: Present only the “edgy design” – 20% chance of winning
Option 2: Present only the “classical design” – 80% chance of winning
Option 3: Present both and let the client decide eDesign has 3 options
Option 1
The “classical design” according to the rules of Team Denmark is too boring for e-Design. On the other hand, it is in perfect harmony with the ideals advocated by the Team Denmark, such as discipline and team spirit. E-Design strongly believe that they could win by presenting the “classical design” but they would stay inside the client`s limit instead of breaking the rules as they are usually used to do. So, I would not suggest that they present the “classical design”, because there is a strong contradiction between the strategy of the Team Denmark and the creative values that e-Design stands for.
Option 2 The “edgy design” is too radical, risky, wild and extreme for the Team Denmark, but seems the correct direction for eDesign. Although this choice is the personification of the e-Design creative values it would be a total breakthrough for the profile of the Team Denmark and would not probably work out. Summarizing, I would not suggest that they presented the “edgy design” either.
Option 3 In my opinion, e-Design should present both the “classical” and “edgy design” and let the client choose. In this case, the Team Denmark will be able to compare itself between the one that they asked for and the revolutionary proposition of e-Design. In that way e-Design could induce them so as to make a step forward and decide to reconsider by giving a chance to them. In addition, if e-Design won the competition they would be able to communicate further with the Team Denmark in order to create a third design more appropriate for both of them. That would be not “classical”, nor “edgy” but at the same time it would be something that the client “would never know to ask for” and it would also reflect the e-Design vision!
QUESTIONS TO BE ANSWERED:
Question #1
What should the e-Design strategy be going forward?
Should they continue to prefer edgy work and build a reputation for that?
Or should they grow up and broaden their appeal to more clients? Clients like team Denmark for example.
Remember this is an ambitious company. They want to grow large but growth costs money.
What direction will allow them to fulfill their ambitions?
Staying edgy or broadening their appeal?
Question #2
How should e-Design implement their strategy going forward? Should they refuse to work on certain kinds of jobs? Should they turn some clients down? If so, what kinds of clients should they turn down? We want you to describe a step by step process for implementing the strategy that you developed in response to question one. And we want it to include short term, medium term, and long term actions. Finally, explain which design you think e-Design should present to the client, and why.
OUTCOME:
– Report in the Power Point format of 10-20 pages (uploaded as PDF file) answering the above 2 questions and providing your view on the design that should be provided.
IMPORTANT:
– to justify your decisions and support your answers you can use any of the strategic management techniques such as SWOT Analaysis, Porter 5 forces, Strategic Analysis of Industry Analysis, PESTEL, PEST, STEP Analysis of eTypes A/S, VRIO, etc
Answer:
Question #1: What should the e-Design strategy be going forward? Should they continue to prefer edgy work and build a reputation for that? Or should they grow up and broaden their appeal to more clients? Clients like team Denmark, for example. What direction will allow them to fulfill their ambitions?
To determine the best strategy for e-Design going forward, we can conduct a SWOT analysis of the company.
SWOT Analysis
Strengths:
e-Design has a unique and edgy design style that sets it apart from competitors.
The company has a reputation for being revolutionary and edgy.
e-Design has a profitable business model and an expanding base of international clients.
Weaknesses:
The company’s edgy design style may limit its appeal to a narrow range of clients.
e-Design’s reputation for being revolutionary and edgy may not be sustainable in the long term.
The company may have limited financial resources to support its growth ambitions.
Opportunities:
The design industry is growing and evolving, presenting new opportunities for e-Design to expand its offerings.
There is a growing demand for sustainable design, which e-Design can capitalize on.
e-Design can leverage its reputation for being revolutionary and edgy to attract new clients.
Threats:
There is intense competition in the design industry, which could limit e-Design’s growth.
Changes in design trends and preferences could impact e-Design’s market position.
Economic downturns or other external factors could impact e-Design’s profitability.
Based on the SWOT analysis, it is clear that e-Design’s edgy design style is a strength, but it may also be a weakness if it limits the company’s appeal to a narrow range of clients. To fulfill their ambitions of growing larger, e-Design should broaden their appeal to more clients while still maintaining their unique design style.
Therefore, the recommended strategy for e-Design going forward is to continue to prefer edgy work while also expanding their offerings to attract a wider range of clients. This could include branching out into different areas of design, such as sustainable design or user experience design, while still maintaining their edgy design style. By doing so, e-Design can attract new clients while still maintaining their reputation for being revolutionary and edgy.
To support this strategy, e-Design should focus on building a strong brand that emphasizes their unique design style while also communicating their ability to meet the needs of a wide range of clients. They should also invest in marketing and advertising to reach new audiences and build their reputation as a leader in the design industry.
In terms of growth, e-Design should focus on expanding their client base through targeted marketing efforts and strategic partnerships. They should also consider expanding their team to support their growth ambitions and to ensure they have the necessary resources to take on larger projects.
Question #2: How should e-Design implement their strategy going forward? Should they refuse to work on certain kinds of jobs? Should they turn some clients down? If so, what kinds of clients should they turn down? We want you to describe a step by step process for implementing the strategy that you developed in response to question one. And we want it to include short term, medium term, and long term actions. Finally, explain which design you think e-Design should present to the client, and why.
Step-by-Step Process for Implementing the Strategy:
Short Term Actions:
Conduct market research to identify new areas of design that e-Design can expand into while still maintaining their unique design style.
Develop a marketing plan to reach new audiences and build brand awareness.
Review existing client relationships and identify opportunities to expand services to existing clients.
Develop a plan for expanding the e-Design team to support
