Generic strategies

These three approaches are examples of

"generic strategies," because they can be applied
to products or services in all industries, and to
organizations of all sizes. Porter called the
generic strategies "Cost Leadership" (no frills),
"Differentiation" (creating uniquely desirable
products and services) and "Focus" (offering a
specialized service in a niche market). He then
subdivided the Focus strategy into two parts:
"Cost Focus" and "Differentiation Focus." These
are shown in figure

The Cost Leadership Strategy

The typical tactics outlined by Porter are approaches to achieve a competitive advantage, or an "edge"
over the competition that ultimately results in a sale. Within the framework of a Cost Leadership
approach, there are two primary methods for doing this:

• Increasing profits through lowering expenses and maintaining average pricing

• Expanding into new markets at lower rates while maintaining a respectable profit margin;
charging prices in line with the market average.

The Differentiation Strategy

Differentiation is making your items or services more appealing than rivals'. Depending on your sector
and goods, this may encompass features, functionality, durability, support, and brand image.

• Good research, development, and innovation.

• Quality goods or services.
• Effective sales and marketing to communicate the advantages of distinct products.
The Focus

Focus companies focus on specialized markets and produce low-cost or well-specified goods by
analyzing market dynamics and client demands. They generate brand loyalty because they serve their
market successfully. This reduces competition in their market niche.

Hugo Boss's plan of action is intrinsically tied to the company's vision and aspiration to become a top
100 global brand and the world's leading premium tech-driven fashion platform. To adapt to this
environment, HUGO BOSS is emphasizing the consumer more than ever before, with a particular
emphasis on Millennial and Gen Z clients. The latter is especially important for manufacturing consumer
items.

Integration responsiveness framework

Different strategies for running a company with a global reach are dissected in this thesis. It emphasizes
two primary considerations in determining the best strategy for managing a global company. First, the
savings that may be made by global integration (such as marketing, production or research economies of
scale). Secondly, the pressure to adapt to regional markets.

Hugo Boss’s business is found in international markets too. Firstly, Hugo Boss was producing its products
in low labor cost countries which were helping them to produce a product ar low cost but Hugo Boss
and its competitors were facing "unbelievable hurdles" due to supply chain interruptions, including
shortages, delays, and increased shipping prices. So Hugo boss has decided to moves its factories to
home country till the problem of supply chain is not solved. Secondly, because of the shift of production
facilities to the home country will also create job opportunities.

Balance Score card

The balanced scorecard is a management system that translates an organization's strategic goals into a
set of organizational performance objectives. These organizational performance objectives are then
measured, monitored, and changed as necessary to ensure that an organization's strategic goals are
met. The goal of this management system is to ensure that an organization meets its strategic goals.
Hugo Boss use Balanced Scorecards to interpret, convey, and evaluate corporate strategies. Hugo Boss's
Supply Chain shortfall was analyzed using a Balanced Scorecard, which provided answers to the
following questions:

• Is there any way to determine which of your internal operations might be beneficial? What sets
Hugo Boss apart, and how will it continue to bring value, in the future? Do the company's
internal procedures need minor adjustments or major overhauls to create or preserve a
competitive edge?
• How do Hugo Boss's clients see the company? What kind of marketing, sales, distribution, and
price strategy is needed to increase brand value or market performance?
• Should we be concerned about whether or not we are creative and forward-thinking? Hugo
Boss's capacity to innovate and remain ahead of the curve vis-a-vis its rivals is crucial to the
company's ability to maintain competitive advantage in today's market.
• What should investors in Hugo Boss be concerned with? Can you explain the potential effects of
Hugo Boss's current moves on the company's financial statements and balance sheet?

Global staffing strategies

Ethnocentric, polycentric, geocentric, and regiocentric frameworks are the four major ways to organize a
global recruiting drive.

Ethnocentric

As a result of using an ethnocentric approach to hiring, we are reliant on citizens of our home nation to
staff offices in overseas locations. To fill an executive position in a foreign nation, for instance, we could:

• Promote from within and transfer one of our current workers who is a citizen of our parent
nation.
• Get someone from our own nation who already resides or is planning to move to the host
country.
Polycentric

Through a strategy called "polycentric recruiting," we staff our operations in a foreign location with
natives of that country. We might, for instance, place ads on neighborhood bulletin boards or negotiate
a deal with a neighborhood employment agency.

Regiocentric

To fill unfilled roles, we look to individuals from the same area (such as a group of nations) for
employment or transfer. To illustrate, we may decide to relocate staff members inside the Scandinavian
region. For this reason, we may relocate an employee from Denmark, another host nation in the same
area, to Sweden if we need to fill a position there.

Geocentric

If we use a "geocentric" strategy to recruiting, we'll find the most qualified candidates regardless of
where they reside. As a result,

• Gaining the services of distant workers. When we need to fill a position in a location far from
any of our offices, we often resort to this method. For instance, we may seek the services of a
representative based in a different time zone in order to better serve our clientele in that region.
• Staff relocation is under progress. Both moving citizens to a new host nation and recruiting
foreign talent into our parent country fall under this category. If the ideal candidate for the job
doesn't happen to live in the area where the work needs to be done, this strategy might help get
them there.

Currently Hugo Boss is using geocentric global recruitment strategy. Hugo Boss wants to be a top
employer among relevant groups. This will help the company find more qualified candidates for Hugo
Boss. The company's worldwide recruiting approach involves contacting eligible individuals personally.
Talents are also sought through digital venues, such as the Hugo Boss jobs website or social media.
Continuous development of digital communication channels is crucial to the company's recruiting
strategy. A key component of digital recruiting is the worldwide employer branding campaign "That's my
Hugo Boss," which attempts to attract external talent to Hugo Boss’s different activities and
personalities. In addition to its online presence, the company attends employment fairs periodically.