Emma's Parlor Case Study Emma Is Wiped Essay

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Emma's Parlor Case Study

Emma is wiped out. In her fatigue, she is thinking about possibly selling one of her two businesses. Yet, this would be a major mistake. The two businesses share many synergies that allow her to capitalize on marketing and up-selling opportunities. Although breaking these synergies may not signal the failure of the business, it would definitely take away some of the major elements of Emma's current competitive advantage above her competitors in both areas, on the web and in retail locations.

There are a number of synergies between these two businesses. According to the external research, "In the business environment, synergy occurs when two or more businesses or resources come together to make a greater impact than they would separately," (Brookins 2012). Emma clearly has the ability to cross market her products and gain consumers interested in both through acquiring their businesses with the other. In her tea room, Emma has the ability to market her own branded specialty teas. Being able to cross market is a crucial element of symmetry that can benefit two businesses (Brookins 2012).
She can hold events at her tea room which feature her specialty teas, therefore acquiring customers on a local level who can also enjoy the product at a higher premium while dining in her tea room. This would also result in possible up-selling as well, which is another staple of synergies between businesses. Here, the research suggests that having the ability to get a consumer in store "significantly reduces the cost of follow-up sales efforts" for other products as well as the original product itself (Smith, Gopalakrishna, & Smith 1999 p 4). Essentially, customers coming to drink her specialty teas in person may also buy a number of her other products that they would have not been able to enjoy online. She can then increase the sales of her scones and other pastries as add-on products to complement her specialty teas. Overall, the major synergies shared result in a greater marketing advantage and the ability for Emma to tap into her already established customer….....

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