Indeed there was a “fit” between the McAulsan breweries and the external environment. At the time there were very little local microbreweries offering a distinctive taste from the big breweries. If the customer wanted to taste something he would have to purchase imported beer at a premium. McAuslan fit nicely in this niche brewing distinctive beer locally at a cheaper price than imports. McAlsan beer also had the added value of being brewed without any additives or preservatives.
If customers are visiting their local industrial "supermarket" these facilities do not display MWX prominently and the 14 person sales force dedicated to this product are unable to educate large numbers of sales reps and end-users on the benefits of MWX. Most biocide maintenance products only work with 45% of metalworking fluids; if customers had a bad experience with these products they may not think it is a product useful for their
1) Do you think Coca-Cola has used corporate social responsibility principles in addressing the obesity crisis? Explain in detail I believe Coca-Cola has used corporate social responsibility or CSR principles in addressing the obesity crisis. When watching their commercial called ‘Coming together(p.37).’, I realized that Coca-Cola really is trying to make a difference in society. As stated in MKTG, CSR principles are used by managers for ‘the long-range best interests of the company and the company’s relationship to the society within which it operates’. Coca-Cola is probably doing better now and will probably do even better financially in the future because of all their new products.
Threat of New Entrants is weak. Entry barriers are high because of the economy, significant experience-based cost advantages, other cost advantages held by industry members (e.g., access to inputs, favorable location), brand loyalty (which comes from membership and other services), strong network effects and high capital requirements. 5. Substitute Products or Services is moderate. Warehouse clubs like a magnet for customers and pulling them away from other traditional retail channels such as supermarkets, department stores, drugstores, office supply stores, consumer electronics etc… All three warehoused club rivals - Costco, Sam’s and BJ’s – have similar strategies: Low prices, low operating costs, geographic expansion – Costco; Sam’s Club concept is to sell merchandise at low profit margins, which means at low prices to members; and BJ’s offers brand-name merchandise at prices that were significantly lower than the prices found at retail, supermarkets, dept.
• A differentiator gains a competitive advantage because it has the ability to satisfy customers’ needs in a way that its competitors cannot, which allows it to charge a premium price for its product. • Premium prices → increased revenue → superior profitability • A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality, and responsiveness to customer needs • A product’s appeal to customers’ psychological desires is a source of differentiation. ▫ Example? 13 Differentiation • Generally, a differentiator chooses to divide its market into many segments and offer different products in each segment • A differentiated company concentrates on developing distinctive competencies in the functions that provide competitive advantage ▫ These are still expensive! • A differentiator must control its cost structure to ensure the price of its products does not exceed the price customers are willing to pay for them • When differentiation stems from the design or physical features of the product, differentiators are at great risk of being imitated ▫ Example?
Bloomingdales is a higher end store that sells high quality products at a high price. They are currently losing many customers because the economy will not move out of the stagnation period. Right now the customers need to be saving their money in case they need it later to pay bills rather than spending it on clothing. Many consumers are starting to shop at stores like Macy’s or Kohl’s where they are offered almost the same quality products at lower prices. Some of Bloomingdales biggest competitors are Neiman Marcus, Saks Fifth Avenue, Bergdorf Goodman, Barneys New York, Lord & Taylor and Nordstrom.
Unlike its big competitors that use traditional sales and distribution model focused on transforming concentrate into a bottle of soda and delivering it to a customer, SodaStream produces soda system that allows customers make their own soda at home. The company uses “razor and razor blade” business model that impels customers to keep buying the higher margin carbon dioxide refills and syrups after they purchase the soda makers at a small markup. Such approach allows the company to generate a constant source of income and to overcome economic, social and environmental challenges. It also helped SodaSteam avoid high entry barriers in the carbonated soft drink industry. 2.
Cottle wants to expand to new product development but the Indian culture has not fully adapted to the use of low-end and mid-range toothbrushes. They live on less than $2 a day and have low discretionary spending. The population in India has grown but so has poverty. This has made it harder for Cottle to emphasis the need for the toothbrush because they refer back to inexpensive homemade brushes. The Indian culture does not associate health issues with not brushing teeth.
The first stage is the introduction stage; this stage is the most expensive to businesses because it is the launch of the new product. The product is new to the market, therefore the sales are low. Coca-cola expects this to happen as it does with all new products. Coca-cola is a family, well trusted brand that has been around for many generations. Merging the coca-cola product with an alcoholic beverage is brand new to the company and will require many different advertisements and promotions to get this product in the public eye.
Another threat of substitute could be companies hiring in house people to save costs, in which case they will have to compete with them in terms of attracting talent as well. Freelancers seem to be another plausible substitute outside the industry. This shows that there’s a high threat for substitutes. Bargaining Power of Buyers: In this industry, some buyers are buying in volumes that are large compared to the vendor. (“Huge tended to