As a strategy to increase the effectiveness of the whole operation the CEO has reduced his
work force by two hundred people and is free from the burden of managing a large
workforce. This strategic move enabled the company to run the business devoid of managing
a huge work force and saves time to effectively focus on building a brand, which is the long
term vision of the founder. The main strategy of company D is therefore building a brand
which is marketable. Thus, the firm has totally moved out of manufacturing and operating as
a marketing organization. They have strategically eliminated the intermediaries and the
whole market operation is managed by distributors identified by the company. “They are not
brand loyal. They just work for the market and possibly can be taken by another person” said
the CEO describing the jeopardy in occupying the intermediaries, who keep 60% of the
margin.