Marimekko

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Case ANALYSIS: Marimekko

Organizational Behavior and Leadership

Q. Why was Marimekko successful in the past? What were its strengths /Weaknesses/ Opportunities and Threats?

Ans. Marimekko known for its unique and simplistic designs was very successful because it had the courage to differ from what the other designers had to offer. Many of its designers hired in the initial phases were young and aspiring and created colorful and vibrant designs to take out Finland from the post-world war mood.

Another reason for its success was that its owners Viljo and Ari Ratia took personal risks being indifferent to profits and monetary success to have a more customer focused approach to always satisfy their needs. The designers were given ownership and were allowed to take risks even if the designs turned out to be unprofitable.

Marimekko was also able to capitalize on the emotional aspect of Finnish patriotism by promoting it as a Finnish brand with all of its products made in Finland.

Marimekko’s product strategy also owed much degree to its success. Instead of following the ‘’chic’’ culture it introduced a completely new concept of ‘’functional garments’’ which were traditional and at the same time stylish.

However this customer focused strategy led to excessive stocks and products that had to be sold a cheaper rate. Also Armi’s excessive risk taking attitude led to a loss when her idea of developing a village flopped and led to restructuring of the company due to cash shortage. This restructuring had a grave impact on the company as it had to cut down production and narrow down diversification. After Armi’s death the company was in doldrums as it had no succession planning and its emotional association led to all the products being made in Finland which lowered their profit making capability which could have been much higher if they would have outsourced their products to third world countries.

Q. How was...