Business Environment SWOT Analysis

Opened in 2008 Franco Manca is an Italian restaurant dedicated only to make the best pizzas in London, as it was confirmed by William Skidelsky (The Observer). Franco Manca is a conventional italian pizzeria trying to create Neapolitan pizzas, the original ones. HISTORY. The history of the Franco Manca starts before 2008, when in Brixton market there was an italian restaurant named “Franco’s”. This restaurant was not only devoted to make pizzas, but all kind of italian food including pastas, salads, bread, polenta dishes, risotto and soups.

In 2008 Franco, the owner of the restaurant, went back to Italy and he closed the place. A couple of entrepreneurs, Giuseppe Mascoli (Italian) and Bridget Hugo (South African) took the same place of Franco’s restaurant to allocate their pizzeria; Franco, the previous owner, used to have a lot of loyal customers who had continued to turn to the place looking for Franco, asking “Where is Franco? ”. The most original answer Mascolini and Hugo thought was to say “Franco manca” which means “Frank is missing” in italian.

That became the name of the new pizzeria. SOURDOUGH. Mascolini is originally from the southern italian town of Positano; Hugo is from South Africa, and despite the fact that he is italian, both of them are an unlikely pair of pizza pioneers. The chefs from all Franco Manca’s restaurants are from Naples (Napoli), Italy, trying to conserve the original napolitan pizza recipe and flavor. Before Mascolini and Hugo opened Franco Manca they were obsessed working with the dough, until a few months later, they perfect the recipe.

They started to work with dough stolen by a friend from a bakery on Ischia (a small island off the coast of Naples) that dates from 1730. Franco Manca’s pizzas are made from slow-rising sourdough, that takes a minimum of 12 hours. Each night around 9 pm the Head Pizza Chef or Pizzaiolo, makes the batch of dough that will be used for the next day’s pizzas. A combination of flour, water and salt are mixed for an hour in an electric mixer (imported from Naples); then it is left to rise in a special proofing cabinet until the next morning.

By this time the dough is very elastic and it is shaped into individual balls with a specific weight, which are ready to be converted into pizzas. WOOD OVEN. The oven used for cook the pizzas is an authentic wood-fired oven made for an artisan in Naples specifically for Franco Manca. It has to be between 90 and 130 cm wide and no more than 35 cm high on the inside. These dimensions matter because they determine the oven’s heat and humidity. Franco Manca’s pizzas are cooked at more than 500°C, twice as hot as in a domestic oven.

Also read

In an ordinary gas oven, with that temperature, the pizza would turn to charcoal. But because the Franco Manca’s oven is so low, it is very humid, which means the pizza cooks without burning. The pizza only stays for exactly 40 seconds to get the right combination of crispness and chewiness. INGREDIENTS. All Franco Manca’s ingredients are organic and sourced from the UK and some of them exported, mainly from Italy. The ham is from Gloucester Old Spot pig (an English breed of pig), and the cured ham, salami and sausages are from Brindisa ( shop).

All the cheeses (buffalo mozzarella, ricotta, pecorino, goat) are from Italy from buffalo and cow herds. The tomatoes are from a group of producers in Salerno who only picked them during July and August. The olive oil comes from a particular producer in Spain, and the olives directly from Puglia, Italy. BRANCHES. The first Franco Manca restaurant opened in Brixton Market in 2008. In 2009 a second branch was opened in Chiswick. At the end of 2011 the third one was open in Stratford, in the food court of Westfield shopping center. The last one was recently opened during the last October 2012 in Battersea.

FINANCIAL SITUATION. Franco Manca is a private limited with share capital company, incorporated in England and Wales on 15th October 2009 and located only in London with a business activity as Licenced Restaurants. The company has a team of 3 directors, and 1 shareholder own the total shares within the company and it is a part of a group. At this time Franco Manca has not reported any financial, as it is either too young or exempt for filling accounts.The latest Annual Accounts for the year 31/10/2010 reported cash at bank of ? 30,737, liabilities worth ? 637,746, net worth of -187,551 and assets worth ? 53,626. SWOT ANALYSIS – Description The SWOT (Strenghts, Weaknesses, Opportunities, Threats) analysis is a tool for understanding and decision-making for all sorts of situations in business and organizations. According with Malcolm McDonald (2008, pp. 42-43) “a SWOT analysis is a summary listing of internal differential strengths and weaknesses vis-a-vis competitors and key external opportunities and threats”. The objective of performing a SWOT analysis is to detect the internal and external key factors to achieve any objective in the company.

The internal factors are the strengths and weaknesses internal to the organization, for example factors relating to the 7P’s, costs, quality, people, skills, adaptability, brands, services, reputation, infrastructure, etc; the external factors are the opportunities and threats presented to the company by its external environment, for example factors related to market, sectors, audience, fashion, trends, competition, economics, politics, technological, environmental, law, etc. “Strenghts and weaknesses represent where the organization is now, and opportunities represent where it whishes to be at a given time in the future” (Luck, 2010).

A marketing opportunity is an area where a buyer has needs or interests and the company is capable of satisfying them. An environmental threat is a challenge caused by a trend or a new development, which may cause a loss profit or sales, if no action is taken with a good marketing. Some of the questions that can help through a SWOT analysis are the following: Strenghts 1. What advantages does your company have? 2. What do you do better than anyone? 3. What do competitors see in you as strengths? 4. What is your Unique Selling Point? Weaknesses 1.

What should the company avoid? 2. What can the company improve? 3. What are the competitors likely to see as weaknesses? 4. What factors lose your sales? Opportunities 1. What good opportunities can you spot? 2. What interest trends are you aware of? Threats 1. What threats do you face? 2. What are your competitors doing? 3. Is the technology threatening your company? 4. Could any of your weaknesses really threat your company? A SWOT should be short, precise and interesting in no more than two pages and should be not based only in one-person opinion.

Once the company has been developed a SWOT analysis can proceed to determine and specify the goals to achieve for a specific period of time (Kotler, 2009). FRANCO MANCA – SWOT Analysis STRENGHTS 1. Non freeze dough 2. Neapolitan recipe 3. Special wood-fired oven 4. Really cheap price for the quality of the food 5. Fresh and non freeze ingredients 6. Organic ingredients, home made organic lemonade and organic wine 7. Food attracts people of all ages 8. Pizza made in 4 minutes, counting since the dough is expanded, adding the ingredients, putting in the oven and cooked for 40 seconds

9. Take-away option 10. Option of two specials pizzas every day: meat and vegetarian 11. Option to add extra toppings to the pizzas that change on a daily basis 12. Different choices of pizzas for vegetarian people 13. Lessons of “How to make your own pizza” at the Restaurant 14. Only 4 branches which gives a feeling of “exclusiveness” WEAKNESSES 1. Not so many branches 2. There is not a delivery option 3. The menu is based basically on pizzas 4. The pizzas are only one size 5. The options of organic home made lemonade or organic wine are not pleasant for all customers 6.

No sodas are serving at the restaurant 7. Few options for alcoholic drinks (beers and wines) 8. Has a little market reputation OPPORTUNITIES 1. Pizzas with sizes for kids 2. Expand to more places in London 3. Have more options of alcoholic and non-alcoholic drinks 4. Our competitors may be slow to adopt organic ingredients 5. Improve the wine suppliers, specially for the organic option THREATS 1. Rising competition may result in costumers going for greater convenience 2. Rising the price of the exported products 3. Legislation about exporting fresh products could affect 4. Food inflation

5. Threat from other Pizza restaurants, trying to introduce an organic option 6. Queue for more than 15 minutes in the winter season outside the restaurant 7. Retention of staff 8. Possible negative publicity about the restaurant only serving pizzas and a few more options 9. Currently not using a lot of technology making difficult to adapt to new options CONCLUSIONS Franco Manca restaurant has a lot of strenghts compared with its competitors, because is one of the only restaurants in London that offers pizzas made with sourdough, and organic ingredients; those are its Unique Selling Point.

Besides, the wood-fired oven gives a particular treatment to the pizza, never making it burn and making a special flavour that it cannot be get from a conventional oven. It is really important for the customers as well that they do not have to wait long time to get their food, because it is a quickly process. The pizzas are really cheaper compared the quality is really above competitors as Pizza Hut, and the price is almost half of it. And a thing that customers love is to have the option of “specials for the day” or extra toppings changed in a daily manner, because they can customize the pizzas as they want.

For all these reasons customers really love the restaurant. But some of the concerness are that the restaurant does not have option for delivery, just take away, but sometimes the customers do not feel really good about having to go to the restaurant to pick up the food. Otherwise there is not a lot of variety on the other food (besides pizzas) because the restaurant only offers salads and bites, but just a few of them. Most of the customers always request a “coke” or “diet coke” to drink with the pizza, but as it is an organic restaurant no sodas are sell, but that can be a weakness for some people.

As a threats there are the normal external things that can affect the restaurant, as food inflation, threat from the competitors, need to rise the price, but Franco Manca will be able to deal with it in case they occur, simply changing for a local supplier, which will be cheaper. As opportunities most of the customers ask for a “kid’s size” so it will be very helpful for the restaurant have an option ’s menu, because the pizzas are really big to be finished by a child.

And the restaurant can improve, as well, the variety of wines, because some people does not like the option of “organic wine” because the flavor is really different, so they need to have at least any other 2 options in case the customer does not like the organic wine; and maybe they can introduce an organic beer, since the theme of the restaurant is “organic food”, they can complement it with organic beer as well.

REFERENCES

1. Luck, D. , 2010. Assessing the Marketing Environment. [e-book] Taylor & Francis LTD. Available at: Ealing, Hammersmith and West London College Your Electronic Library on the Web http://students.wlc.ac.uk/lc/dawsonera.asp?book=S9780080966236

Read more

Explain what is SWOT

McDonald’s possesses good market share. It has the largest fast food market shares in the world with outlets from over 100 different countries. Heavily Invested In advertising, McDonald’s spends almost $2 billion In advertisements yearly. Customers are aware of McDonald’s latest promotion and products from TV commercial, leaflets and signboards. In addition, McDonald’s has a superior reputation. Its brand recognition is valued at $40 billion.

Every age group has heard of and knows about McDonald’s. Furthermore, it is highly owned by independent franchise. More than 80% of McDonald’s’ restaurants are operated by franchise, allowing the restaurants to improve their service systems. Lastly, McDonald’s targets at children by serving a vast variety of kids’ meals which are complimented with different popular toys. Many restaurants also have a segmented play area for children. 2. 2 Weakness Howard Crawford (May 201 3) has also shared the following restaurants.

Unhealthy food menu Is a weakness as McDonald’s main menu is burgers, fries and coke. McDonald’s Is said to disrupt the eating habit of people especially the youngsters. Another weakness of McDonald’s its negative publicity as it has always received negative remarks for its workers’ bad service, creating environmental problems such as using environmentally unfriendly materials for its packaging and infringing animal rights. For example, using chickens from chicken farms whose reputation on treating their animals is questionable.

Low differentiation is yet another weakness. Other brands of fast food restaurants such as Burger King and Wend’s serve about the same type of menu as McDonald’s. 2. 3 Opportunity Howard Crawford (May 201 3) commented that McDonald’s has tried to expand Its customers base by entering Into new and popular products. MacAfee offers premium coffees, smoothies and cakes to attract more customers and to retain its existing New, healthier food items have been incorporated into McDonald’s menu in a bid to attract more consumers.

Corn cups, apple dippers and apple Juice have been introduced as a healthier alternative to the unhealthy fries and soft drinks. In the future, McDonald’s can consider serving baked potatoes, cherry tomatoes or even whole meal biscuit for the healthy-conscious consumers. McDonald’s can consider expansion into foreign markets. Although McDonald’s is the world largest fast food restaurant, some countries like Vietnam, Jamaica and Yemen still do not have McDonald’s in their countries. It can also consider expanding the area of its home meal delivery service.

Most area n Singapore has McDonald’s delivery service but countries like UK still does not have a delivery service. 2. 4 Threats Increasing societal focuses on healthy eating may be a threat to McDonald’s (Howard Crawford, May 2013) as more people increasing more health conscious of eating healthy food which could in turn, reduce the demand for fast food. Competitor pressure in developed countries is another threat. There are already many fast food restaurants like Burger King & Wendy in developed countries. It is very difficult for McDonald to achieve large financial growth in this overcrowded market.

Read more

SWOT Analysis H&M

The essence of the SWOT analysis is to discover what you do well; how you could improve; whether you are making the most of the opportunities around you; and whether there are any changes in your market such as technological developments, mergers of businesses, or unreliability of suppliers that may require corresponding changes in your business. This actionist will introduce you to the ideas behind the SWOT analysis and give suggestions as to how you might carry out one of your own.

  • Strengths – numerous options in collections and styles, there is something for every person – affordability, it’s important for people to get something with quality for a good price
  • Weaknesses customer services become difficult to maintain for big store space and numerous product lines – A store that is that big can not offer a personal care like a small boutique opportunities – association with celebrities – creating fame and attachment to brand, like the commercial with Beyond on television. I think you all have seen it. – Website management- producing and selling the products by website, customers shopping by internet without visiting the store, also it can shipping to USA and Europe.
  • Threats – Competition from other high street retailers like EZRA, River Island, Breaches. – Negative impact on celebrity endorsement campaign – debate on celebrity choice Specific issue(strategic option): Product: Fashion and quality at the best price. Place: The H brand is a very strong brand in Europe.

However to make even more profit they can make it worldwide and expand in areas for example Latin America. In addition they could improve online shopping with. Because it is only available in SWOT analysis By exact Price: Their prices are already reasonable for quality products they offer. However they could improve by making use of more sales actions. Promotion: H has already a strong promotion policy. For example they use: Poster on busses, Commercials on TV, backbone etc.

Free catalogues Each season we strive to feature models with different looks, styles and cultural backgrounds to advertise our concepts for women, men, teenagers and children. However if we would chose an idea to improve their promotion we would introduce to expand the idea of online floggers. Online floggers get the clothes of the brand for free. And in return they have to upload pictures of their outfits in social media such as Mainstream, Twitter, Backbone , Link etc. Goal: How does sustainability fit with H’s business model and continued growth?

Read more

Swot Analysis of Geely Automotive- Case Study

Gel has built upon this strength by showcasing their technological innovations in the heavily marketed and world renowned Detroit Auto Show. They also tied for first prize in the 2009 State Science and Technology Award for its innovation and received an award that has, for the past 5 years, has been received by only 12 out of the more than 5 million candidate companies (Min, 2005). Awards like this as well as Galleys industry celebrated technology advantages (such as the Blow-out Monitoring and Brake System, Electronic Equal Balance System, and overall safety improvements that allow

Gel to meet the international Fl technical car racing safety standards) are part of what helps will help in generating more customer trust in the quality of their product and will in allow Gel obtain a larger scope of economy (Shah, 2009). This strength will allow them to diminish their weakness of perceived poor quality as well as bring them closer to achieving their long-term goals of owning a competitive brand (Shah, 2009). From 2004-2008, Gel was able to sustain strong financial growth in their unit sales and revenues through their cost saving methods and technological innovations.

Their first major cost-saving method is their implementation of vertical integration (Des, Limpkin, & Eisner, 2010). Since they produce “many of their components in- house,” they are able to avoid the cost of purchasing through a middle-man as well as the cost of paying employees to scout for cheap suppliers (Des, Limpkin, & Eisner, 2010). They have also been able to sustain strong financial growth by building specialized manufacturing bases in areas that focus on producing cars that match the incomes of the locals (Des, Limpkin, & Eisner, 2010).

For example, Galleys manufacturing plant in Shanghai (a large metropolis in China in which consumers have higher incomes) focuses mainly on mid-ranges automobiles (in the price range of $6,580 to $9,200), while the manufacturing plant in Tuition (a smaller city in the Soot Analysis of Gel Automotive Study By miracle focuses mainly on lower-end (in the price range of around $3,950) automobiles (Des, Limpkin, & Eisner, 2010).

The implementation of strategic idea has allowed Gel to expand the entire automobile market in China due to the fact that many of their customers who purchase the lowest-end models couldn’t afford a car before the arrival of the Gel plant and are now able to own a car. Technological advances have also kept them growing financially as their overseas consumers are attracted to their energy saving (for their alternative-fuel automobiles) and practical innovations (for example the Mecca which is the world’s first small sized sedan designed to accommodate the physically disabled) (Gel, 2012).

These advances in technology not only expand their product portfolio, they help build the company’s brand and bring them one step closer to achieving their long-term goal of obtaining a competitive brand (Gel, 2012). Since 2008, they have had some ups and downs due to their acquisition of Volvo, but they are still relatively strong when in comparison to their Chinese competitors. Weaknesses China has long been considered a nation that produces poor quality products.

All Chinese products have long had “a reputation for shoddy workmanship” in the eyes of overseas consumers and the abysmal failure of the “Landing SUB, made by Chinese automaker Jangling Motors,” during its international “safety test that scored O out of 5 in passenger-cab protection” surely didn’t create an exception for their automobile products (Des, Limpkin, Eisner, 2010). This puts Gel automotive at an extreme disadvantage when compared to their industry competitors (such as Toyota, Chrysler, and Volkswagen etc. In overseas markets as they will need to work hard to differentiate their brands from the detrimental brand recognition of other Chinese product-based company’s. They have not attempted to remedy this weakness directly (by advertising industry crash test comparisons, promoting the life p of their vehicle in comparison to competitors etc. ); however, they have attempted to work around it by focusing on their research and development which increases reduce innovation and gives Gel unique and hard to imitate competitive advantages.

This weakness of perceived poor quality by their overseas consumers will certainly be a tough obstacle to overcome, but they are gradually shifting their focus from short-term revenue growth to long-term branding (Des, Limpkin, & Eisner, 2010). Gel is continually attempting to expand their narrow (in comparison to other Chinese automobile competitors who of course are bigger because of their joint-ventures with foreign companies) demographic of consumers. They targeted lower income consumers when they first entered into the automobile market (Des,

Limpkin, & Eisner, 2010). This was a necessity at the time as they were the first privately owned automobile manufacturer, allowed and encouraged by the Chinese government, and needed to attain a significant share of the market quickly to hurdle over the value offerings entry barrier and establish a steadily growing company. This worked very well at generating quick revenue and distributing their brand as Gel quickly grew to the ranks of “Top-10 Auto Producers” in China (Des, Limpkin, & Eisner, 2010).

This was good for the short-term, but they needed to increase their automakers (Des, Limpkin, & Eisner, 2010). They have combated this weakness of only holding a small demographic that is very likely to be competed with as other privately owned company’s follow Galleys example by increasing their product portfolio (Des, Limpkin, & Eisner, 2010). Their plan of introducing “5 new models a year from now until 201 5” is a direct action designed to combat their revenue concentration (Des, Limpkin, & Eisner, 2010).

Their innovations is what will help improve brand credibility when attempting to sell to higher income consumers which in turn shrink this weakness and promote their long-term goal of owning a strong imitative brand (Des, Limpkin, & Eisner, 2010). Opportunities The growth of China’s automobile market is and will continue to be an opportunity that the fast growing company Gel needs to take advantage of.

Fortunately for Gel, “car sales increased by 21 percent in China in the first quarter of 2008, and were showing no signs of slowing after five years of 20 to 30 percent annual growth (Des, Limpkin, & Eisner, 2010). ” This is a big reason why China is included in the BRICK economies that are expected to be the largest economy’s in the world by 2050. Galleys market share of the Chinese automobile industry is roughly 2% at present, UT with the increase in the overall market capacity they don’t need to look outside of their borders for an increase in revenue and sustainable growth (Gao, 2004).

China’s steady economic growth presents a serious opportunity that Gel will need to continue to take advantage of when trying to meet their long-term goals. They have hopes of entering the “potentially lucrative U. S. Market” sometime in the near future, but they need to first improve their brand image (through the increase of appearances at U. S. And European auto shows) a great deal overseas before they can realistically enter the U. S. Arrest (Des, Limpkin, & Eisner, 2010).

The best way for Gel to establish a competitive and trusted brand value for both foreign and domestic consumers is the utilization of their already well-established distribution channels and consumer market base in China to steadily increase revenues which in turn allows Gel to spend more cash on their Research and Development which should allow more ways of Gel to create more reasons for U. S. Consumers to buy Gel automobiles (Des, Limpkin, & Eisner, 2010).

Now that Gel has grown by almost 900% over a four year period (2004-2008) they have much greater buying rower which has created the opportunity to acquire strategic assets; an example of this Galleys 2010 acquisition of Volvo (Des, Limpkin, & Eisner, 2010). Gel seized the opportunity of acquiring a company that would not only give them new ideas for advancements in car safety, but would improve the average overseas car consumer’s opinion of Galleys quality.

The term is brand association and now that Gel owns the “safest car company in the world (at least this is the perception in my and many of my fellow American consumer’s minds),” they have attempted to indirectly remedy their weakness of perceived poor quality (Ferreira, 2009). Unfortunately, Gel will have to do a little more than buy a brand (as famous and successful as it may be) as the perception of quality won’t go up until they improve their “zero stars received in the first-ever round of Latin American NCAA crash tests (Shah & Lb, 2009). ” Another opportunity is for Gel to purchase SAAB.

As of right now, Gel is still known for producing mainly lower-end automobiles, but an alliance or acquisition with a to introduce products that can sell for a higher profit (Kaufman, 2009). The downturn of the Western World’s economies has left Gel with the opportunity expand their lobar knowledge and better prepare themselves to enter the U. S. And other overseas markets. These opportunities need to be acted on now as the economies don’t stay down forever. Threats The policy reforms of government agencies can threaten to reduce the overall growth of Gel.

When speaking of Galleys sales on the mainland, they have a few threats that include, but are not limited to: government instated quotas, increases in tariffs, and a more accurate valuation China’s currency (when pertaining to the exchange rate) which would increase the price for overseas consumers “which would originally decrease Galleys competitive edge (Des, Limpkin, & Eisner). ” These government instated policies can pose serious threats for Gel as political decisions are even harder to predict than economic changes. Consequently, these threats can’t be dealt with proactively, only reactively.

However, there are some threats that Gel can be proactive in attempting to protect themselves from. The two most notable are safety standard requirements and the emission’s test requirements. In the mainland (China), these aren’t much of a threat as there are very liberal safety standards as ell no emissions test requirements (Min, 2005). However, these standards create a challenge and potential threat to the company’s plans of entering into the U. S. Market. Gel has gone through past failures in regards to both emissions and safety (Des, Limpkin, & Eisner, 2010).

Since that time, they have increased their efforts to research and develop new ways of enhancing safety so as to ensure that none of their models are kept out of the market (Des, Limpkin, & Eisner, 2010). An example is the invention of Galleys Blow-out Monitor Brake System which is featured n the majority of its models to help detract the consumer’s attention from Galleys weakness and instead create a unique element about the product that entices the customer and makes it hard for their competitors to imitate or copy.

As long as Gel continues to meet all of their market’s government’s standards and stay in touch with economic trends, they should be able to sustain their already stable competitive advantages. The fluctuation of economies always presents a threat to product-based companies and the increase in revenue plague of slow economic growth is no exception for Gel Automotive. The economic downturns in most of Western society’s national markets created a shrinkage of market potential for the auto- industry company’s both foreign and domestic. The U. S. Arrest alone suffered a 22% decrease in market potential and with other European countries (particularly countries in which Gel has manufacturing plants and operational interest) hurting as bad or worse, Gel must avoid this overseas threat by using their global strategy of finding out which markets would be the best to focus on their marketing and sales efforts (Des, Limpkin, & Eisner, 2010). Keeping these threats in mind will hopefully give Galleys top management team the protection they need to avoid a decrease in liquidity as well as guide them in choosing the best geographic regions to focus their company’s efforts.

A socio-cultural segment that would enhance the threat for when Gel tries to expand into America and other largely nationalistic consumer markets is the idea of “buying American (which can of course be applied to other nations that the already strongly trusted and widely appreciated brand of Toast’s long-lasting quality isn’t immune to this socio-cultural trend. This factor alone makes me feel that Gel shouldn’t enter the U. S. Market until at least a few years after the U.

S. Has gotten back on its feet to ensure that they’ll be protected from a deficit in their business venture. Gel will need to remain aware of their economic surroundings as well as develop ways to reduce revenue concentration by increasing their product portfolio which is something they have recognized and acted on consistently since 2005 (with the production goal of putting five new successful models into the market until 201 5) (Des, Limpkin, & Eisner, 2010).

Read more

SWOT Analysis of G-shock

SWOT analysis of G-shock watch from Cassia, the strength of G-shock watch from Cassia is an important element.

Firstly, we know that G-shock, Baby-G, Edifice and Pathfinder are sub-brands of Cassia; they have targeted for a different group and marketed accordingly. Those brands targeting group are urban upper middle class youth. They have targeting it with clear and focused. Plus, the positioning of Cassia is watches that are technology advanced.

Because Cassia most popular product is etches and it already designed world’s first LCD watches with having a full auto calendar. Other brand might not have those technologies yet, but Cassia already have it. Now a day, people love much for LCD technology product, for example LCD TV, LCD laptop, LCD desktop and others. That is why the Cassia designed LCD watches and it very popular now. There is many other innovations are synonymous with the Cassia image. In addition, we can see that Cassia has focus on sponsored events in the area of sports and also we can found a lot of athlete in G-shock from Cassia’s advertisement.

That is because G-shock watches have a similar function with those sport’s watches and sponsored events in the area of sports and use an athlete in their advertisement can prove beneficial to the brand image. The most important is, G-shock watches from Cassia are cheaper if comparing to others brands but have an excellent quality. People now a day always prefer cheaper product with a good quality, and it is suitable for youth today because youth have low income. Cassia brand can stand so long and popular in today because it is protected with 1986 suggested trademarks in 187 countries around the world.

We can see the Cassia everywhere around the world. This is also the reason of why it is popular, because almost every countries around the world recognize G-shock watches from Cassia.

Weakness

For G-shock watches from Cassia, we found that it more like a watches brand than electronics brand. Almost all the watches have the same function, but Just a different design and style, from here we can see that G-shock watches from Cassia have put a lot of effort for designing the watches but not doing an innovation to improve the genealogy of the watch. Read also Porsche SWOT Analysis

We also can see that they have a different color watches and famous athlete in their advertisement but not a high technology watches in their advertisement. In my opinion, designing watches is not that simple like only for the appearance. Because G-shock watches from Cassia are focusing in their hatch’s appearance.

Opportunity

G-shock watches from Cassia have a fashion design and style, it means that it has an opportunity to tied up with those fashion house and sponsoring events.

For example, G-shock has produce watches that with a Cataracts logo and design. Not only the Startups, there is a lot of fashion house like to cooperate with G-shock watches from SOOT Analysis By Hen-Mom watches, and many models like to wearing it because of it fashion design and style. As what I am saying at the strength of G-shock from Cassia, G-shock from Cassia have targeting youth today, and it is very successful because we can see that youths today are really attracted by G-shock from Cassia because of it fashion design and style.

One more reason that G-shock watches from Cassia is attractive because it have a similar unction as the old style sport watches.

Threat

G-shock watches are popular right now, but it also having threat. We know that G- shock is a sub brand of Cassia, so they might face threat of counterfeit Cassia product. Not only Cassia, other sub-brands like baby-G, Edifice, Pathfinder also produce watches, and the appearance from those sub-brands has almost similar to G-shock. Not only the appearance, they also produce sport watches and digital watches, even the function also similar to the G-shock brand.

In addition, there is one more threat hat G-shock might be faced, that is competition in watches with the “sport look” in the market is heavily populated, that is because not only G-shock having a “sport look” watches in the wide market. Like what I’m saying that is a lot of brands that having those “sport look” watches and also having the similar function as sport watches. So that is hard to populate if Just having a “sport look” watches. To solve this threat, we can found that G-shock now has trying to develop and designing other type watches that not Just only “sport look”.

Read more

A Swot Analysis of Starbucks

Introduction Starbucks is a famous coffeehouse. Until the mid-1980s it was only a provider of coffee to fine restaurants. Thereafter Howard Schultz, director of retail operations and marketing, was impressed of the popularity of coffee in Milan while he was in Europe . His idea was born. He wanted to bring the coffee bar culture to the Americans. So Starbucks started to realise his idea and so created a new trend. The clue is not only to sell coffee, but to sell an experience. Today Starbucks has got about 20 million customers each week in about 5500 coffeehouses all over the world .

While haunting to increase sales more and more, Starbucks has got a special growth strategy. They open a lot of stores in a very short period of time, expanding numerous food offerings and also getting into new segments, for example supermarkets. They develop new products like bottled coffee or Starbucks-flavoured ice cream. In addition to that, Starbucks tests new coffeehouse concepts, for example with live music. Since a few years, Starbucks opens more and more stores outside America.

The important question is, if Starbucks’ growth rate will continue within next years because on the one hand critics say that Starbucks grows too fast and is loosing the focus while on the other hand some critics compare Starbucks’ coffee with Mc Donald’s? hamburger and believe that they will grow up more and more as the dominant player on this market . With the help of the SWOT analysis and the BCG matrix the situation of Starbucks can be analyzed after finding out, why people pay more money for a coffee, than in other coffeehouses.

What has suddenly made people across the world willing to pay three to four times more for a cup of coffee than they used to? Starbucks has created a new trend. They do not just sell coffee, they sell an experience. To drink coffee at Starbucks is different from drinking coffee in another coffeehouse according to a Starbucks executive who said, that “Starbucks is not in the business of filling bellies but in the business of filling souls” . They recognised that they were getting into a new niche, which did not exist before.

While having great success, Starbucks grows rapidly to have an advantage according to a bunch of competitors who also entered this new niche. With the high-quality coffee, Starbucks creates besides a new brand a new lifestyle which is known all over the world. Furthermore, they offer a lot of different flavours which differs from other coffeehouses. But coffee is not the only reason why people are willing to pay a lot more there than in other coffeehouses. The mission statement declares that the employees’ job is not only to sell coffee.

They should enthusiastically satisfy every customer to give him the special feeling and experience at Starbucks . All in all Starbucks recognised a new niche and satisfied the customers with their special flavoured and high quality coffee. To get an idea of Starbucks’ success, it is necessary to take a close look at the company by using the SWOT analysis and the BCG matrix. A SWOT analysis of Starbucks Strengths The company has a strong presence in the United States of America and a good reputation for creativity and coffee. Starbucks has started a real trend and many people enjoy drinking a Starbucks coffee.

However, it is not just coffee but rather an experience Starbucks sells. Starbucks operates in more than 5,500 stores worldwide. This presence provides a wide and strong customer base. It is a global brand and is widely known. Starbucks built up a reputation for fine products and the name is a common brand label and this gives Starbucks a competitive advantage because people connect coffee with Starbucks. Every week more than 20 million customers visit Starbucks to get a coffee once or twice a day. In the last years the company could tripled their earnings. Another strength is that Starbucks has a strategy they follow.

These strong principles include that Starbucks looks after their employees and threat each of them with respect. They create a nice and friendly environment that they also reflect outwards. Starbucks offers different flavours through its position as a disciplined innovator and introduces diverse products. They also pay attention to the high standards and want to offer the best quality. Starbucks decided to push into supermarkets because the majority of people bought their coffee in stores before. Therefore Starbucks came to the conclusion to make a deal with the Kraft company.

This deal combines Starbucks experience in producing premium coffee with Kraft’s knowledge of marketing, selling and distributing. That was a good step for Starbucks to reach a new channel and to get the entry to 25,000 supermarkets. It makes sense that the company wants to reach the people at home and to include more people into the Starbucks lifestyle. Beyond stores, Starbucks sells its beans to hotels, several airlines and airports. Starbucks sells gourmet coffee, beans as well as gifts and related goods. (Starbucks also signed a deal to operate coffee shops within Waterstones bookshop superstores. Also the homepage of Starbucks has become successful and a ‘lifestyle portal’, where the company sells a variety of products like tea, coffee making equipment, compact discs and collectibles to satisfy their customers needs with different products. Weaknesses One of Starbucks` weakness is that their primary product is just coffee. They are therefore dependent on this main product line. Starbucks is however testing to launch food offerings like sandwiches and chips in combination with coffee. Its goal is not only to expand more and more in its offerings but also to reach further target groups .

A problem is that Starbucks has a slow ability to diversify into other sectors which could be fatal because the company believes in being successful not only because it is selling coffee but rather it is selling an experience . This makes them different from other competitors who might only sell coffee. “Coffee Lifestyle” may vary from time to time due to the fact that the global coffee market is a very competitive sector . Another weakness are high prices of its products. People pay up to $3. 15 for a caffe latte. One supposes that people buy this product only because they think that it is a premium product .

But it is especially the brand name which tempts customers to buy the product without taking the high prices into consideration. As already mentioned before, the customer is not only buying the product, he is buying it with an experience. Another weakness of Starbucks is that they are simply relying on the philosophy that coffee is just an experience. There exists no doubt a good marketing strategy but it is questionable if this is helpful to maintain over time on the market with the strategy of only focusing on one product. “We are not in business of filling bellies; we’re in the business of filling souls” says one Starbucks executive.

That shows another very good and appealing philosophy of Starbucks. This makes the product and its uniqueness but it is only a question of time when people are saturated of this experience. You have to point out that Starbucks itself tries hard to achieve this effect by the people through a competent public relationship. Opportunities Starbucks has a widespread presence and practices in about 1. 415 stores and just last year they build up 400 new stores. The company has seen opportunities to open further stores all over the world due to the heavy demand and space to expand. For example Indiana in the US has only one Starbucks.

Furthermore, Starbucks has the opportunity to expand its global operations. The company is now expanding rapidly and in 2003 the number of stores has increased in 24 international markets compared to 1996 when they had only 11 stores outside the United States. Starbucks also tests new food which represents that food might be the next step they want to go. With this the company would have the chance to offer food that could be successful as its coffee. They test everything from doughnuts to Greek pasta salads. Starbucks also teamed up with PepsiCo to adopt the brand on Frappuccino drinks and a newDoubleShot expresso drink.

Beyond this Starbucks ice cream is nowadays a leading brand of coffee ice cream after Starbucks established a joint venture with Breyer’s. In addition, Starbucks invested in Cafe Starbucks, a European-style family bistro, where the costumer has a wide choice from huckleberry-pancakes too oven-roasted seared sirloin. Alongside, Starbucks is testing Circadia, a new food venture, where the customers have Internet access and listen to live music. Starbucks has always been able to offer new coffee experiences as well as creating new products or opening new kinds of stores. Threats

One of the biggest threats of Starbucks is its grand expansion all over the world. When launching a new product numerous customers are visiting the company’s stores world wide each week. It is especially Starbucks growth strategy which stands for a threat for the company. Starbucks especially concentrates on store growth. Almost 85 per cent of sales are generated through its stores. Although they have great success, Starbucks always finds new places for further expansion on the local as well as on the national market with being aware of the fact that the local as well as the national market may be saturated of its product.

The creation of new retail channels also shows that Starbucks is not concerned about peoples` rejection or about failing to be successful. Apart from their strong presence in kiosks, several airlines, hotels and the co-operation with Waterstones’ bookshop superstores, Starbucks enters 25,000 supermarkets to sell their products next to their strong competitors like Nestle and Kraft. They also offer coffee, tea and its equipment on its website to be internationally present for a wider target group. To intensify its presence they are not deterred by joining with other companies to have its logo to be seen everywhere.

Several ideas should achieve various people. They are full of ideas only of the fact of not wanting to stop their expansion. However, the international growth is remarkable. While having only 11 coffee-houses in 1996 outside North-America, they now launch their products into 24 international markets. The great success of Starbucks has also brought negative consequences for the company because many competitors try to imitate them. These are companies like Caribou Coffee, Costa Coffee, and Coffee Republic. However, it is very hard to maintain on the global coffee market which is a very competitive sector.

These days one speaks about an increasingly over caffeinated marketplace. So Starbucks must compete against the offers of restaurants, coffee shops and street carts. A major competitor with substantially greater financial, marketing and operating resources than Starbucks could enter the market at any time and compete directly against the company. Starbucks must be aware of competition on all levels and maintain its operational performance if it is to retain status as the world’s leading specialty coffee retailer.

Finally you could say that Starbucks is more concerned about the fact that there are still plenty of local places as well as internationally places which is not taken over by them. Instead of being worried about the fact that their rapid expansion could also lead to a rapid decrease and failure in several markets. The whole marketing strategy of Starbucks may cause to a loss of the main focus through stretching its resources by further expansion. Main focus should be first put on the product itself and not on international expansion in this way.

Why not ensure the popularity of the product itself than making it something normal due to the fact that it is present almost everywhere. It can be seen undoubtedly that Starbucks has the potential for development in many different ways but it has to have its growth under control. This may be a challenge for Starbucks. BCG Matrix The BCG matrix is an instrument, developed in the early 1970? s by the Boston Consulting Group to analyze the product portfolio of a company or a business unit. The matrix is based on the product life circle. The matrix is mainly used in the strategic marketing sector.

The matrix shows in a coordinate plan the positions of different strategic business units. The interesting categories are on the one side the business growth rate on the y-axis and the market share on the x-axis. The method brings cognitions in three relevant areas: ?Analysis of the strategic position of a company. ?Determine the capital in the several business units with a view on the whole company and therefore the cash flow in the company. ?Every quadrant responds to a norm strategy which could be used as a guideline to verbalize strategic activities in the company .

It is also necessary to look after the whole portfolio especially on the statistical financial compensation. The products in the portfolio should be based upon on another and finance one another. To create a long-term value a company should have a portfolio of products that includes fast growing products which need a high input of money and slowly growing products which are creating a high amount of cash. The BCG matrix has two dimensions: relative market share and market growth rate. The idea behind this matrix is: if a product has a high market share or the market of the product is growing fast than it is an advantage for the company.

Analysis of Starbucks using the BCG Matrix Cash cows: Benefits from the generation of cash should be high. Because of the low-growth rate capital expenditures which are necessary should be hold low. Often cash cows are the stars of yesterday and build the base of a company . One of Starbucks’ cash cows is their coffee ice cream. This is a relatively risk free investment that doesn’t absorb great amounts of cash. Through the partnership with Breyers, Starbucks doesn’t need to spend money on the production process. With Breyer? experience and the Starbucks name the ice cream was sure to succeed on the market. With it now being one of the market leaders on the coffee ice cream market, Starbucks can “milk” it and benefit from the sales, knowing that there is not a high cost factor. Another, but quite small cash cow is their bottled Frappuccino drink. Once again Starbucks took on a similar strategy by working with an already established beverage manufacturer. The investments are once again a lot lower than their sales, giving them a high profit margin. Stars: Stars use a high amount of cash.

These are leader in the business and hence they should create a high amount of cash. Stars are often in balance with the net cash-flow. The company should do their best to hold the market share on stars because stars will become cash-cows if the market-share is held by the company . Starbucks’ biggest star is the coffee sold and consumed in their coffee shops (stores). With an incredible 85% of sales coming from their stores it is their biggest source of cash intake . Although competitors offering similar products have emerged, the market growth still looks promising.

Some states like Alabama and Mississippi don’t have any Starbucks stores meaning that there is still a large market to expand onto. The people living in these states have not been able to enjoy a cup of Starbucks coffee. The revenues from their coffee sales should therefore be used to invest in new stores making it possible to sell their coffee. Another one of their stars is the packaged coffee sold in supermarkets. With the help of Kraft Starbucks has gained quick access to the packaged coffee market. Thus they have been able to quickly increase their market share on a rapidly growing market .

Unlike their other joint ventures with PepsiCo and Breyers, Starbucks has done more than just put their name on the product. As they are still roasting and packaging their own coffee they need to invest a lot to further establish their position on the market. Dogs: Dogs are discontinued models of the company. A company should minimize, better avoid the number of dogs. Dogs have to make cash, otherwise they are divested . Starbucks? dog is the sandwiches sold in their stores. Although they experiment with different foods in their stores, they do not make a lot of profit from food sales.

Furthermore it can be said that the sandwich market is not growing and Starbucks do not have a high market share. However, this SBU should not be divested immediately as it may help them to draw in further customers who know that they will be able to grab a sandwich to go with their coffee. Question marks: Question marks are the newcomer of the products. The have a high growth-potential. They have the worst cash features of all, because they have a high demand of cash but perform low outcomes because of their low market-share. If the market-share is unchanged are question marks using a high amount of cash.

The management has to decide to invest in the product or to give it up. Starbuck’s further attempts to boost their growth such as selling coffee to airlines and hotels can be classified as question marks. At the moment the demand for premium coffee to be sold in airports and hotels might be high, but so far only Marriott, Sheraton and Westin have deals with Starbucks meaning that there are a lot of hotels not selling their coffee . If they want to expand on this market they will need to invest a lot of money into new deals with other hotels.

It will take time before they can increase their market share and make a profit. Cafe Starbucks and Circadia, two new store concepts are also question marks. At the moment they are only experimenting to see how customers will react to a different kind of Starbucks experience. Setting up a chain of these new concepts will require a lot of money and time before they can establish themselves on the market. If they succeed in competing with other cafes of a similar style this SBU could be another profitable SBU in the future

After positioning Starbucks? products on the BCG matrix it can be said that they have a stable source of revenue. With the majority of their sales coming from the coffee sold in their stores and two profitable, if on a smaller scale, joint ventures they have enough money to invest in other new products or stores to ensure that they will be as successful in the future. Besides investing this money in new stores enabling them to serve an even larger market, it can be invested in their coffee sold in supermarkets.

Rapid growth of the premium coffee segment indicates that it won’t be long before a number of competitors force their way onto the market. Investing into this SBU will enable it to develop into a cash cow in the future. Regarding the sandwiches sold in their stores they need to reconsider if this is something they should continue to invest in the future. The prospects for the future look promising as they have two strong stars and other smaller products that can carry the company in the future. Looking at Starbucks as a whole it can be seen as a star.

Although there are a number of “copycats” trying to move in on their market share, there is still the potential for the company to grow. Up until now not all states have their own Starbucks store, an indication that the market is still growing. Although they have tripled their sales and profits over the last 5 years, they need this money to invest in new stores in states such as Alabama and Mississippi and their new store concepts such as Cafe Starbucks . If they are able to expand successfully and the market ceases to grow they will eventually turn into a cash cow.

Read more

SWOT analysis of Red Bull

Table of contents

I. Executive Summary

A marketing plan plays an important role in building up a successful business. It helps the business in focusing on its objectives and goals. There are several steps that the manager should follow before designing his marketing plan. The first step emphasizes on collecting enough information about both his competitors and the costumers so that the most attractive market segmentation will be targeted using the most effective strategies.

This project, with the referential of a case analysis of Red Bull Energy Drink Company, aims to give guidance for the organizations on how to create and sustain certain strategic planning by using the 4 Ps. Moreover, this paper covers the mission, vision and values of Red Bull Energy Drink Company; along with its marketing strategies.

Throughout a SWOT analysis of Red Bull Company, the strengths, weaknesses, opportunities and threats will be identified. In this project, the company’s segmentation planning, positioning and targeting; along with evaluation will be covered.

The end of the project will uncover some findings which summarize that Red Bull Company might face some challenges due to growing competition and competition from emerging products, and the demand of new trends. In order to minimize those challenges and their negative effects, the company might adopt the 4 Ps of innovation in their marketing strategies, along with penetrating the market throughout product innovation in order to create a strategic marketing plan. It is also known that improving the used process will lead to a better product; which will consequently result in a better paradigm. The used method in this study is mainly secondary.

II. Introduction:

A. An Overview of Red Bull Company:
According to Oxford Dictionary (2001), energy drink is “a soft drink containing a high percentage of sugar, caffeine, or another stimulant, typically consumed during or after sporting activity or as a way of overcoming tiredness”. One of the pioneering energy drinks is known as Red Bull. Red Bull “is an energy drink sold by Austrian company Red Bull GmbH, created in 1987. In terms of market share, Red Bull is the most popular energy drink in the world, with 5.387 billion cans in 2013.” Retrieved from www.redbull.com (Dec. 8, 2018)

As it was mentioned in the Red Bull official site, Red bull was first inspired by an existing energy drink named Krating Daeng; sold and introduced in Thailand by Chaleo Yoovidhya. Dietrich Mateschitz, the owner of Red Bull, was a traveling sales representative when he launched his brand in the year 1987. Red Bull started in the Austrian market, and then spread its wings in the year 1992, and became an international company and brand. Now Red Bull is considered as a worldwide company that sells its products in over 171 countries around the world.

Kallmyer (2015) mentioned that for over decades, Red Bull had relied on their simple product line that included few flavors such as cola or lemon. Later, they took more diverse flavor line to match their competitors, such as Monster. Their lines included Total Zero Orange Edition, Total Zero Cherry Edition, Red Bull Yellow Edition, Red Bull Red Edition and Red Bull Blue Edition. Each edition has its own flavor and formula.

Keller (2009) defines a brand as the “name, term, sign, symbol, or design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition”

Red Bull has built its brand by associating itself with a wide range of people, teams and events. Moreover, Red Bull doesn’t simply sponsor teams or events; it rather owns them. That ownership strategy has helped them by turning the buzz machine into a profit center. Also, their on-brand activities have helped them in building their suburb personalities as serious athletes who participate in hard tasks, and the fun, adventurous and humorous that is represented by their popular slogan “Red Bull gives you wing”, and other advertised funny cartoons found on their website. (Aaker, 2013)

Aaker (2013) added that throughout the years, red bull has widened its horizon by sharing in many overwhelming activities such as wakeboarding, motorcycle racing, music events and sponsoring athletes and teams such as the racer Ashley Fiolek and the soccer team New Red Bulls and much more. Moreover, their website includes fun features like Red Bull Soapbox Racer, video games, music and TV shows. Those entertainment features are also found on their Facebook page that includes more than 37 million followers.

B. Red Bull Mission, Vision and Values:

The mission statement is known as the company’s objectives and the approaches to reach those objectives. As it is mentioned in Red Bull official site, “Be the premier marketer and supplier of energy drink across the globe by building long-term relationships with the people who can make it become a reality” is the mission statement of the company; using the Red Bull’s mission statement; we can understand the company’s business objective and its method to reach those objectives. “Be the premier marketer and supplier of energy drink across the globe” is the Red Bull’s business objective. Moreover, “build long-term relationships with the people who can make it become reality” is the company’s method of achieving their objective.

Red Bull has identified their vision statement by saying that “Red Bull GmbH are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices, dedicated to coaching and developing our organization as an employer of choice.” Retrieved from www.redbull.com (Dec.8, 2018). Furthermore, Red Bull claims to value people, ideas and culture.

C. The Significance of Red Bull Company as a Case study

As it was mentioned by Aaker (2013), Red Bull is set to be one of the leading energy drinks for almost three decades. Its sales were estimated for $3 billion, and its profits over 400 million with a 43% of US dollar market. Cornelissen (2017) stated that “investing in the development of a corporate image for the organization has further strategic advantages for organization”. Hence, it is important to work on improving and developing the company, rather than being satisfied by its states. The best way to do so is to imitate a market leader; it is the company that has the largest market share and leads in price changes, new product introduction, distribution, coverage and promotion intensity. Throughout following the lead of the market leader and avoiding his drawbacks, a company would reach its fullest potentials.

D. Objectives of the Project:

The objective of this project is to give an overview of the Marketing Strategy followed by the pioneering energy drink company, Red Bull. Throughout analyzing the company’s Swot, 4 Ps, its porter’s forces; and how they affect the company, its defensive and attacking strategies; along with its advertising and promotion tools and the way they affect its market’s shares, certain conclusion will be built. That conclusion will be a general guideline to understand how to follow the company’s lead to increase the profits, and to avoid its errors and hardships to gain a better posture, position and market share.

III. The company’s SWOT analysis

“Good performance within a company is the result of correct interaction
of business management with its internal and external environment. The
recognition of internal strengths and weaknesses, as well as external
opportunities and threats, takes place the basis of a SWOT-analysis.”
(Houben et al., 1992)

A. Internal (within the organization)

1. Strength:

Red Bull is considered as the market leader since the company has sold all over the world the amount of 5.226 billion can by the year 2012, as it is shown in the given figure. Also, the company is set to be a global leader since it has 70% in the world market share, even though that it faced a great competition from other brands.
Moreover, Red Bull has gained its strength by launching new categories of drinks and developing the shape of their cans into smaller and more fashionable. Also, according to Red Bull official site, “Numerous scientific studies on the product and the individual ingredients prove that Red Bull Energy Drink: increases performance, increases concentration and reaction speed, improves vigilance, stimulates metabolism, and makes you feel more energetic and thus improves you overall well-being”. (redbull.com)

2. Weakness:

Despite Red Bull’s popularity and strengths, Red Bull still faces some
points of weaknesses. Since the energy drinks category is set to be a small part when compared to the soft drinks market, Red Bull faces a certain weakness concerning their products. As it was mentioned above, Red Bull only has 5 products with only three flavors (Blueberry, Cranberry and Lime). So, the Company is still vulnerable the market swings.

Since the manufacturing of Red Bull is only stranded to Austria factories, supplying the product to other parts of the world will be costly when it is compared to other products, due to laws and regulations, distribution costs and taxes.

B. External (outside the organization)

1. Opportunities:

To start with, since Red Bull has only few products, the company has to take the opportunity and start creating new products. Also, Red Bull is set to be the biggest sponsor of sports and outdoors activities, so it has the ability to advertise and promote its brand more widely. Finally, Red Bull can eliminate the distribution cost by opening new manufacturing units in different parts of the world.

2. Threats:

The biggest threat the Red Bull faces is the competition of other brands. For examples, a brand named Monster is producing their own energy drink with the privilege of using natural ingredients; which will be more desirable for the costumers. The ingredient of the product is not FDA approved. Moreover, the high amount of caffeine and sugar are extremely dangerous on the health.

IV. Porter’s Five Forces and how they Affect the Company:

Porter’s Five Forces is defined as a powerful tool that the organizations use in order to identify the severity of the competition in a certain industry and its profitability (Jurevicius, 2013).In the year of 1997, Five forces were created by Michael Porter that help in understanding how those five forces are affecting the industry. Those five forces could be identified as the following:

A. Competitive Rivalry
1. Number of competitors
2. Quality of differences
3. Other differences
4. Switching costs
5. Customer loyalty
B. Supplier Power
1. Number of suppliers
2. Size of suppliers
3. Uniqueness of service
4. Your ability to substitute
5. Cost of changing
C. Buyer Power
1. Number of customers
2. Size of each order
3. Differences between competitors
4. Price sensitivity
5. Ability to substitute
6. Cost of changing
D. Threat of Substitution
1. Substitute performance
2. Cost of change
E. Threat of New Entry
1. Time, cost of entry
2. Specialist knowledge
3. Economic of sales
4. Cost of advantages
5. Technology protection
6. Barriers to entry

V. Marketing 4 P’s

A. Place
1. Market
2. Channel
3. Distribution
B. Product
1. Brand
2. Services
3. Packaging

C. Price
1. Discount
2. Offer price
3. Credit policy
D. Promotion
1. Advertising
2. Publicity
3. Sales Promotion
VI. Defensive and Attack Strategy used
VII. Online and Social Media Strategy used
VIII. Problem(s) Identification
IX. Ways to improve the Company’s Market Position
X. How to overcome Challenges and Obstacles
XI. Conclusion and Recommendations

Read more
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp