Introduction
This report will examine CTB’s strategy and its correlation to its initial success and most recently to its financial struggles. A strategic plan will be developed for a successful future.
Situational Analysis
At the inception of their business, CTB had devised a clear strategy; to focus on a specific customer and to provide a high quality product. This is demonstrated by their original vision and mission statement. The company had achieved strategic positioning in a very short period of time. The strengths of their strategy can be divided into three categories that are summarized in “What is Strategy” by Michael Porter. They are: 1. Creating a fit among company’s activities:
Their focus on inventory management resulted in 15 inventory turns a year, the industry average was 6. As a result, their relationship with the suppliers was excellent and allowed quick access to inventory. Their customer orders were filled in one day compared to the average of 4 to 6. 2. Created a unique and valuable position:
They served the needs of a very specific customer, and their customer base was growing as a result of their reputation. Their ability to provide the exact product the customer desired allowed them to increase their sales price by 10 and 20%. 3. They made the right choices on what and what no to do:
In 2001, they revised their mission and vision without compromising their position, and looked to the long term by increasing the product base with value-added products for their target customers.

Current Situation and Problem
In 2007, their market share had dropped significantly, and they developed a new strategy. The new strategy focussed on improving costs by outsourcing and improving efficiencies which was imperative to keep up with the rapidly changing technology and market. This allowed them continue to hold their gross profit