Business strategy essays

Please conduct a financial analysis to support your position—you may wish to use the financial ratios presented in the Table 4.

Business strategy essays

The strategy focused on mass marketing efforts indeed proved to be very successful in capturing the different target segments through various mediums used. This eventually translated to an all time high revenue of 17 billion yuan in and has made WLK a brand that consumers trust the most.

However, in light of this success, WLK still needs to push ahead for further improvements in order to sustain its market position.

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Today, there are over 50 other brands competing alongside WLK. However, the factor that distinguishes WLK from its competitors is their established brand name and customer loyalty.

Business strategy essays

These two factors, coupled with a high set up cost and the inability to enjoy economic of scale EOS production acts as a deterrent for new entrants. WLK, being the market leader in the nutraceutical industry, significantly lessens the bargaining power of its suppliers as suppliers often like to leverage on the affiliation with big players and are unlikely to turn away from the huge income attached to such customers.

At a current price point of 3.

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The fact that people tend to buy the drink for its functional benefits also suggests that substitutes do not post any threat to WLK.

Therefore, due to the strong demand and brand loyalty of consumers, the power of retailers and substitutes are weakened to a large extent. Overall, the competitive forces surrounding the functional drink industry in China is relatively low.

In essence, we see that WLK is a rising star in this category in addition to it being the dominant player in China. Financial Impact Pertinent to the first tactic of our first strategy, the following graph charts the increase in financial contribution of fountain sales by 1.

Establish a stronger presence in the local functional drink market 1.

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These food-chains are selected due to their strong brand name, vast number of food-chains all over China and great strategic value. Having a collaboration with these three firms will allow WLK to gain access to their well-established distribution channels, build up their brand name as they are seen associated with well-known brands and finally, reduces their risk of entering the fountain market.

The entrance to the fountain market will be broken down into two stages. For the first three years, WLK will provide its product through the use of metal kegs. Concurrently, research and development will be in placed to produce a concentrate syrup that WLK is missing.

This will eventually replace these metal kegs from the fourth year onwards.

Business Strategy – KFC Company Essay Sample

The additional labour and cost is justified as time is essential and WLK has to move into the fountain market while the other competing brands are not currently in.

This will allow them to have the first mover advantage and ensure that these popular food-chains will not hold other brands with similar properties in the future.

Besides the boost in revenue, WLK also enjoys benefits such as increase in revenue streams, brand recognition and brand loyalty.

Currently, there are few small players carrying these products in ready to drink versions with most being sold in packet or raw form and because of the limited reach these players have, it hinders the product take up rate and henceforth its sales. Differentiate the Wong Lo Kat brand in the local market Similar to the soft drink industry, the herbal drink industry is also very competitive and their products are relatively easy to imitate.Sep 03,  · If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on business strategy.

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the traditional business strategy within organizations, which is seen by some researchers as misguided development and part of the reason for failing of ventures (Mansfield & Fourie, ; Teece, ). Instead it is suggested that strategy and business model must be considered jointly, in order to provide ground to integrate various and partly.

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