Word count: 3’049 without Bibliography and Appendix
Strategic Analyses of Jura’s Competitive Position in its Domestic and Global Markets
Introduction ‘Since 1931, the Swiss company Jura Elektroapparate AG has been developing innovative high-end household appliances’ (Jura, 2011). This sets the scene well and suggests that Jura clearly takes pride in its own heritage and history. Jura has built on this heritage and developed a strong brand. Jura has mastered technological innovation. According to the OECD (2005: 116) ‘Technological innovations comprise new products and processes and significant technological changes of products and processes. An innovation has been implemented if it has been introduced on the market (product innovation).’ Jura has pioneered the niche premium domestic coffee machine market and has become a major player in its field. There has been a tremendous transformation from a domestically focused business to a company with international vision. ‘In 2010, JURA achieved total sales of CHF 372 million, 13.7% of which was generated in Switzerland and 86.3% in international markets’ (Jura, 2010). The key was to shift away from commoditised appliances into premium coffee machines from which it was possible to differentiate. The new set strategic vision was ‘global leadership in the premium and subpremium segments of fully automatic coffee machines through a process of continuous innovation’. Jura would use this vision consistently to guide resource allocation. Today Jura is already global, supplying domestic coffee machines to homes in international markets. It is currently seeking to expand into the office and catering market, and enter additional markets. Jura does not belong to a large conglomerate, thus the distinction between corporate and business level strategies becomes somewhat academic. However, as evidenced in appendix 1, strategy can be formulated on three different levels. Corporate...