1.Using subway , it is now time to evaluate the strengths, weaknesses, opportuni
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Question
1.Using subway , it is now time to evaluate the strengths, weaknesses, opportunities and threats you uncovered and determine what strategy is best suited based on the outcome of the IFE and EFE.
Discuss which generic business-level strategy is best suited to keep the company you selected competitive. Offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting
#2
Select one of the strategy formulation analytic tools and complete based on the information gathered in the Week 3 Learning Activities; the tools to select from are:
Space Matrix
Boston Consulting Group (BCG) Matrix
IE Matrix
Once you have completed the tool discuss the outcome in terms of what strategic direction the selected company should take and why. As always, offer supporting rationale for your explanation and be sure to reference your statement using proper APA formatting.
Explanation / Answer
Answer: 1. For analysis of generic business level strategies, the company selected is Coca Cola.
Generic business level strategies are:
- Invest for product innovation
-Engage in bolt on acquisition
-Vertical integration of supply chain to reduce risk of supply chain disruption
-Unique marketing and sales campaign
-Strategic tie ups with restaurants and eateries,fast food chains for cross selling
- Unique and appealing Packaging/bottling
-Use 80:20 parity and focus on major revenue earners rather than further diversification of product portfolio. Focus on strengthening the position in specific high potential segments.
The generic strategies will be mostly focussed on product differentiation . There is already a market collusion amongst the major players and the scope of increasing market share basis cost leadership is difficult.
Answer 2: For the sake of analysis we choose the tool BCG matrix.The organization selected is Coca Cola.
Coca Cola is an international beverage manufacurer and supplier.BCG matrix analysis tool can be applied to analyse the product portfolio , their corresponding market shares, market growth and a suitable corporate strategy can be recommended.We shall analyse and position each of the product offering of coca cola into one of the 4 quadrants as below:
1. Cash Cow: This section is characterised by High market share and low market growth. This quadrants includes products whcih are in the maturity stage of their product lifecycle and generates sustained evenue to fuel the growth of the company and to support the development f new products.The flagship product of the company the cold drinks marketed under the brand Coca Cola is the cash cow as it generates majority of the income and has very large international and domestic market share. The company needs to contnue investing to generate revenue as the product is mature .This section also includes the product sparkling water.
Stars: This section is characterised by high market grwth rate and high market share. The products in this category has a very large market share and is supported by rising consumer demands. Coca Cola's bottled drinking water falls under this category. The strategy would be to invest.The products ae in growth phase.
Dogs: This is characterised by low market share and low growth rate. There is little potential for the growth of the product and the market is also mature. Coke life soda falls under this category. This product had to compete with other established brands in this category in a vey mature market and hence failed to gain traction and resulted in low sales revenue adn low market share.The strategy would be to liquidate.The poducts are in decline phase.
Question mark: The product in this category is characterised by Low market share but very high growth rate. With the rise of millenials the curren generation is becoming increasingly health conscious and hence the demand for a low calorie drink is on the rise.The products diet coke falls under this category as it can take care of the growing demand. It has huge poential to gain significant market share and can qualify as star in the long run. Other products are fanta, minute maid. However a lot of investment is needed to boost the sales and achieve the desired revenues.The strategy would be to invest selectively and divest the rest.Te products are in introduction phase.
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