The low barriers of entry are a threat in the water product industry that makes this industry extremely competitive. “New entrants to an industry bring new capacity and a desire to gain market share that puts On the basis of your answers to questions 1,2 and 3, produce recommendations which address the need for developing the business model, the strategy and activities for Annandale for the next five years.Annandale Water Ltd must expand its distribution network immediately. Within a term of five years the products of the company must be available in at least 100 locations in Scotland. After the third year the firm must implement an action plan to export its products internationally to other markets in Europe and to the United States of America. Exporting is the easiest foreign market entry strategy to implement (Kotler). Along with seeking sales growth through international expansion the company has to fix its supply chain and distribution logistics in order to reduce costs. The firm should use the services of transportation companies such as UPS, FedEx, and USPS for some of the orders. The transportation cost would be covered by the client instead of the company. The fleet of vehicles must be reduced by 50% within three years. Along with gasoline the firm has to pay licensing and maintenance costs of all vehicles. The transportation crew must be reduced by 50% as well in order to lower the payroll of the company. The company must increase its spending in advertising in order to expand its branding strategies within its domestic market and internationally. Large corporations such as. What is the Strategy of Annandale.
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