Original submission details
Original title: Why my children ate Play-Doh and how Hoover hooverd its money
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3.5 Investigating contemporary examples of strategic fit
In this activity, you will explore the concept of strategic fit by investigating real-world examples of companies within your local or national market. Your task is to identify and analyse one company that exemplifies a poor strategic fit and one that demonstrates a good strategic fit.
1. Research a company with poor strategic fit Look for a company that is currently struggling in their marketplace. Investigate the reasons behind its struggles. Consider aspects such as market changes, competition, internal mismanagement, failure to innovate or misalignment with customer needs. Use recent news articles, financial reports and industry analyses as sources. 2. Research a company with a good strategic fit Identify a company that is thriving or showing significant growth. Analyse the factors contributing to its success. Focus on how its strategies align with market demands, technological advancements, customer preferences and the competitive landscape. Utilise current market data, success stories and business analyses for your research. 3. Prepare your findings For each company, prepare a brief report detailing your findings. Include an overview of the company, the strategies it has implemented, and how these strategies represent a good or poor strategic fit. Discuss the implications of these strategic fits on the companies’ long-term viability and market position. 4. Reflect and share Reflect on what these cases teach about the importance of strategic fit in business success and sustainability.
Course task reproduced as context. The response below is Fiona’s independent academic work. KEATS source ↗ (university access required).
Explore writing on this question ↗1. Hoover’s Free Flights Fiasco: When Vacuums Fly (Marketing strategy gone Badly)
Back in the early 1990s, Hoover was watching its market share drop faster than a Dyson price tag. So they launched a promotional campaign promising two free flights to the U.S. with any vacuum purchase over £100 (The Independent, 1993). The shit hit the hoover when everyone and their mother claimed the tickets and the campaign cost more than the earnings.
BCG Matrix Breakdown:
• Market Growth: Hoover was operating in a flatlining market. Vacuum cleaners weren’t exactly a growth industry by the 90s.
• Relative Market Share: Weak, especially with aggressive competitors moving in.
• Placement: Classic Dog—low growth, low share (Douglas, 2024).
• Instead of gently phasing out or pivoting their strategy, Hoover dumped cash into a promo they couldn’t fulfill, resulting in lawsuits, PR disasters, and a complete loss of credibility (The Independent, 1993).
GE Matrix Breakdown:
• Market Attractiveness: Low. Commoditized and price-sensitive.
• Business Strength: Medium at best—legacy name, but failing to innovate.
• Zone: Blue – Harvest or Divest (King’s College London, 2024).
• GE Matrix would’ve recommended squeezing what little value remained or walking away. Hoover? They strapped on a pair of metaphorical wings on their dog and crash-landed into marketing history.
2. Play-Doh: The Wall Cleaner That Became an shooting star
I have spent a small fortune on Play-doh so it was amazing to hear that before it was squished, molded, and eaten by kids around the world, Play-Doh was invented in the 1930s as a wallpaper cleaner (Goldstar IT, 2022). With the rise of vinyl wallpaper and electric heating, that market dried up faster than the play-doh still stuck on my white couch. But instead of becoming a “dog,” Play-Doh pivoted—hard.
BCG Matrix Breakdown:
• Original Product: Dog. Obsolete, low share, and shrinking demand.
• Rebranded Product (Children’s Toy): Star. High growth market (toys) + strong brand share = squishy success (Douglas, 2024).
• A brilliant example of product repositioning and portfolio reclassification. What was once cleaning goo is now an educational and entertainment staple, with massive brand equity dirtying my house. GE Matrix Breakdown:
• market attactiveness: High. Safe, creative play is always in demand.
• Business Strength: High. Early entry, continuous innovation, and brand nostalgia.
• Zone: Green – Invest for Growth (King’s College London, 2024).
• GE Matrix would’ve thrown capital behind this pivot, and that’s exactly what happened. Play-Doh today is a multimillion-dollar brand under Hasbro with themed sets, scent lines, and a devoted fanbase in my household.
I guess Hoover ignored their BCG and GE Matrix reality, thinking a ticket to Disney World would magically save a sinking ship. Their vacuum strategy? Sucked… and not in the way vacuums should.
Play-Doh, on the other hand, saw an obsolete product, flipped it into a booming new category, and reshaped its future— literally and figuratively. This was textbook BCG “from Dog to Star” and a shining(get it cuz its a star) example of GE’s green zone investment logic (Douglas, 2024; King’s College London, 2024).
See comments for my references.
References were supplied in a separate reply on 2025-03-23 at 10:29 PM.
References.
- • Douglas, W. (2024). BCG and GE Matrix Explained. King’s Business School [Lecture]. KEATS, King’s e-Learning and Teaching Service.
- • King’s College London. (2024). 3.4 Assessment of portfolio tools and their purpose. KEATS: Marketing Strategy and Planning (7QQMO515X).
- • The Independent. (1993). How Hoover got stuck in the free flights trap. [online] Available at: https://www.independent.co.uk.
- • Goldstar IT. (2022). Top 10 Company Pivots You Might Not Know About. [online] Available at: https://goldstarit.com/top-10-company-pivots-you-might-not-know-about.
- • Reddit. (2023). What is your favorite example of a massive marketing fail? [online thread]. r/AskReddit. Available at: https://www.reddit.com/r/AskReddit/comments/18jqluv.