Group Project Pottery Bran & Sherwin Williams PDF

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Global Business Strategy Mandatory Assignment...

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RUNNING HEAD: Group Project: Pottery Bran & Sherwin Williams

Group Project: Pottery Bran & Sherwin Williams

Adnan Mehdi (301091381) Andrei Joan Mosquera (301112834) Maria Maldonado (301119119) Vriti Kalia (301108877)

INTL 706 – 003 – M2-6 Global Business Strategy Professor Farhan Zaidi August 26, 2021

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GROUP PROJECT: POTTERY BRAN & SHERWIN WILLIAMS

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Executive Summary

An alliance is the voluntary agreement of cooperation between firms. These are usually either of the one between non-equity based agreement or equity -based joint ventures (JV) [CITATION Mik09 \l 1033 ]. Pottery Barn & Sherwan WIlliams Alliance is a Contractual non-equity based alliance where in 2013 they focused on cobranded marketing initiatives named as “Color Your Room” (www.potterybarn.com, 2021). Pottery Barn is a market leader in the home furnishing business while Serwin Williams remain a Global leader in paints and coating industry. These two diversified business decided on the strategic alliance to showcase service or product to a new audience. The exclusive line of paints together created an opportunity for improved performance. Sherwin-Williams and Pottery Barn (Williams - Sonoma) created a Strategic, contractual (non-equity based) alliance, where co-marketing and co-branding were the specific goals. The alliance was looking to take advantage of both well-established businesses and to create a new window of opportunity within the “renovation” industry. Even when both companies belong to different industries, the current strategic

decision of Williams - Sonoma to incursion in the renovations industry, seemed

fruitful

by working aside Sherwin-Williams. Even Though the alliance was based on a contractual relationship and not in an “equity” relation, the main goal was to obtain better financial performance from diversifying industries. Since the co-branding campaign, both companies have benefited, as Pottery Barn has added value to its brand by being an "interior designer" for its clients, which has allowed it to find a new way to attract, connect, and keep its customers. customers, allowing it to have greater stability and longevity. Sherwin Williams has seen an increase

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in its sales due to the advertising acquired on the Pottery Barn website, which has improved its profitability. The partnership has allowed each company to attract new customers who would not otherwise be familiar with its brand, improving their respective market share. The partnership between the two companies has proven to be a huge success as shoppers are inspired by the color palettes and even pick entire room designs based on the seasonal themes developed by both businesses. Pottery Barn and its affiliated locations were able to give paint color consultations through their Design Services thanks to a boost from Sherwin-Williams, opening up new avenues for the company to engage with its consumers. Moreover, Pottery Barn has become a one-stop-shop for customers who wants the painting expertise of Sherwin Williams combined with the amazing decor of the former (Ellsworth, 2020). Pottery Barn and Sherwin Williams alliance of the “strategy tripod” has partnered based on resource consideration which has resulted in a win-win with 18% growth in Consumer group revenue and “Color your Room’ being an industry trend, there are opportunities where both firms can benefit greatly. Given this to be first alliance of this kind, both companies have a very strong advantage which they can capitalize on. However, to combat opportunism by any one firm, both firms can agree to share their unique information on critical technology and skills with each other (Peng, 2012). A potential extension of this partnership is to open co-branded outlets across markets to ensure continued success.

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References Mike W. Peng, P. (2014). Global Strategy Third Edition. South Western: Cengage Learning.

Fazzini, K. (2018, April 14). Specialty Retailers Present Mixed Bag for Quarter. Retrieved Aug, 2021, from https://www.hbsdealer.com/news/specialty-retailers-present-mixed-bag-quarter Peng, M. W. (2010). Global Strategy (3rd ed.). CENGAGE. 258-293 corporate.sherwin-williams.com. (2021). Retrieved from Our Company: https://corporate.sherwin-williams.com/our-company.html Mike W. Peng, P. (2014). Global Strategy Third Edition. South Western: Cengage Learning. (2013). Sherwan Williams 2013 Annual Report . www.coatingsworld.com. (2013, July 30). Retrieved from Sherwin-Williams And WilliamsSonoma, Inc. Form New Partnership: https://www.coatingsworld.com/contents/view_breakingnews/2013-07-30/sherwin-williams-and-williams-sonoma-inc-form-new-partnership/ www.potterybarn.com. (n.d.). Retrieved from About Us: https://www.potterybarn.com/about-us/? cm_type=fnav www.potterybarn.com. (2021). Retrieved from Sherwin-Williams Paint Colors: https://www.potterybarn.com/pages/features/paint-landing/? cm_src=OLDLINK&searchredir=true&term=paint...