Again, reducing senescence using dry oxidizers is equally important for the company. Additionally, through the packaging design, SmartPac reduces physical injury of the produce as well as post-harvesting losses (Christensen, 2013). On the same point, the design enhances safety since it prevents bio-terrorism and provides accountability. Thirdly, the company’s objective is to reduce Carbon footprint of the produce shipping. Lastly, on objectives, the company through SmartPac, aims to obtain and sustain momentous competitive advantage in the market modernization. In addressing this problem, the company has to highlight the constraints at hand.
High costs are the primary constraint associated with this new product. In effect, the SmartPac boxes cost is relatively considerably higher than the already existing packaging. Secondly, is the production capacity? Due to the design of SmartPac, large volume orders are required for the operation to be sustained. Consequently, the company has to bring operations to one level to accommodate demand. The market in third world countries are populated though they have relatively lower incomes. Thirdly, changing the famers’ common philosophy of “Pick when ripe” would be challenging.
The firm will have to change this philosophy to one which advocates for later picking times. Further, the company needs to change the growers’ method of increased fixed costs such as distribution arrangement systems (Alvarez &Johnson, 2011). Ultimately, it would be hard for the company to expand the product’s use beyond luxury or high end retailers. External Factors facing Fresh Tech Consumers around the world would always demand for fresh and quality produce. For this reason, Fresh Tech is always devoted to pick a market segment out of this demand. In order to successful compete for the segment, the company has to unceasingly plan for implementation strategies.
In this case, the strategy would be aimed at revolutionizing the fresh produce market with SmartPac technology (Alvarez &Johnson, 2011). The analysis highlights the concept of strategic positioning through using Michael E. Porter’s five factors that dictates the industry profitability. The five factors or forces aim at providing the basis under which competition and profitability is expected. These five forces include the bargaining power of buyers, rivalry among existing competitors, bargaining power of suppliers, the threat of entry and the threat of substitutes. When Fresh Tec aimed at getting a portion of the farm produce packaging markets, using the SmartPac, they faced numerous entry challenges that would otherwise effect on the profitability of the company.
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