Herman Miller Case

W.L. Gore's strategic direction is an aggressive diversification strategy. The company is able to produce a variety of products in different NAICS codes using the same base technology (PTFE) in a wide variety of applications. The different sectors that W.L. Gore operates in range from the electronic products division, the fabric division, the industrial products division, to the medical products division. W.L. Gore prides itself with high quality products to meet and exceed the needs of customers; therefore the generic strategy for W.L. Gore is product differentiation. The diversity of products, markets, and geographic locations creates financial stability and protects against market fluctuations while creating multiple investment opportunities. Due to the high level of technological know-how, entry into this market is difficult and requires major investments into research and development.

The strategic alternatives W.L. Gore could implement range from conglomerate diversification on the conservative side to a higher level of vertical integration on the aggressive side. I would eliminate the move to the conservative side of the SPACE diagram because it would not play to W.L. Gore's core competence of innovation. Moving to vertical integration would allow W.L. Gore to have more control over suppliers and over the distribution channel, which could increase efficiency. But it would also require adding competencies that are not currently W.L. Gore's forte. The best possible strategy for W.L. Gore is to focus on globalization and innovation, expanding on their current product line.

The selected alternative for Gore is concentric diversification. It is most closely aligned with Gore's core competency. W.L. Gore has been able to create a large and successful company by fostering a culture of innovation where any employee can contribute and pursue development of new or extended products. Fast Magazine has called Gore "one of the most innovative companies in America". The culture behind the company is a competitive advantage. Gore should treat the work environment, which has been described as a lattice structure, as a critical asset. These empowered innovative teams and the collaborative leadership is a work environment that will benefit company in the long-run. It is the unique work environment that has landed W.L. Gore regularly in the top of Fortune's 100 best companies to work for. Growth for the company should