| ANALYSIS VIA PORTER’S FIVE FORCES MODEL The threat of new entrants in the online grocery business could lead to the company having to lower their prices and also, may have to lower their delivery fee just to compete with the newer companies that are trying to start out in the online business. They will also need to advance their technology within the company. The bargaining power of buyers allow for the customers that purchase loyalty from the company to pick and choose the products they need for the best price. This helps with the growth of the company; the company depends on customer loyalty to stay in business but this allows for the competitors to compete against one another. The bargaining power of suppliers hurts
Despite scouting for smaller opportunities, a first round of $250 million funding may not be sufficient for Brazos to invest in any more than a few firms which gives them limited scope for diversification. This places greater pressure on a first time fund and in particular, Brazos’ motivation to add value by simply promoting organic growth in cash flow and operational efficiency in the hope of enhancing industry scale. Additionally, the existence of dependable cash flow and management make it easier to acquire debt financing and increase leverage which suits a first time fund. Furthermore, Brazos’ previous relationships and experience in the market allowed it to mitigate aspects of first fund bias which inhibit the entry of many prospective VC firms into the industry. Brazos’ GTT method is one of its points of differentiation which appear limited in its application to a variety of firms outside the ‘family-owned business’ model.
Could Hubspot not hire and assign a proportional split of internal software engineers, and sales support staff each dedicated to the market segments Hubspot serves? Verizon offers solutions, products, updates, and customer service for individual users, small businesses and large corporations, all across a multitude of products. I believe the argument that Hubspot should focus on either Marketer Marys or Owner Ollies entirely is a fallacy. Although Marketer Marys (MM) have a higher CLV, lower churn rate, and appear to be growing faster compared to Owner Ollie, (OO) it does not mean that OO’s aren’t profitable and should be ignored. In fact, it is entirely possible that OOs could be more profitable given the market size of OOs is much larger, and ‘Small-size businesses’
Old Navy and IKEA are both accessible stores that can be found across North America and online. Both companies make eye-appealing products for the whole family, but do not age well. For example, IKEA pre arranges its products to lessen the thought of assembling products. When products become less of a hassle for the buyers, they tend not to look at the cons of the products. IKEA does this buy distracting its customers by making their products colourful, stylish, and cheaper than other competitors’ products.
The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost. Attracting employees to join the company is the better option unless there is a management position that requires exceptional talent to fill the position. Relocation of prospective employees can be costly to the company and there is no guarantee that they will be long term employees of the company. With the company's plans for expansion I would recommend overstaffing. This will allow the company to stock pile talent for future
Consumers are demanding chemical free homegrown products. It is easy for consumers to find other companies who can provide comparable services. However, new technology is only a fraction of what makes Gene One stand out over their competitors. Consumer loyalty and strong leadership will give them a major advantage. The challenge for Gene One will be to maintain their cohesiveness as a management team and maintaining a high level of social responsibility while expanding the company to a publicly traded organization.
Selling products online will make it easier for Innocent to reach to wide range of customers. Another challenge that Innocent could face is being able to keep its current employees because during recession Innocent might struggle to pay wages so they might think of paying minimum wages. This may makes employees to leave the jobs and look for better jobs with higher wages. So it is essential for Innocent to provide as fair wages as they can to keep their existing employees. During recession Innocent would mostly want to survive.
There should not be an issue with them attempting to find the best deal to make the most profit. If each company was told that they could sell their products wherever they choose but could only purchase their goods for sale from a particular supplier it would put them at a disadvantage. There are some corporations that have the ability to buy at larger quantity and in exchange they are offered a discount on their cost for the total quantity. These corporations can move goods at a higher rate so they are able to do this whereas a mom and pop type of business is forced to buy at higher cost so they have to sell at higher cost to earn a profit and this can scare off potential customers. Toys “R” Us was looking to find the best deal for their business and their customers.
Just as physical products are open to innovation and change, so are new services. An example of this type of innovation is Frederick Smith who is the American entrepreneur responsible for the multi-million dollar international company, Federal Express. He created a new and better way of moving packages between people. New services, like physical products can also have positive movement due to branding. It is beneficial for entrepreneurs to think more along the lines of all product and service aspects instead of in silos and just thinking about producing “products” alone or “services.” That concept is imperative for entrepreneurs to understand as customer service can be added as an additional component as well to a physical product.
Business location should also be a part of Biddy’s Bakery strategic strategy for success of the business. A good location will in fact affect the growth and increase in customer base. The bakery space was limited in Elizabeth’s home, however taking on the additional facility operating cost like water, lights, gas, mortgage, building maintenance, etc. could have been avoided by adding on additional hours of business. Elizabeth overestimated the businesses growth and paid for space she wasn’t able to use.