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What is the Strategy of Annandale Essay Example

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What is the Strategy of Annandale

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What is the Strategy of Annandale. The branding value of the product is its greatest strength. The company can capitalize on its brand by expanding the number of places that distributes the water products of the company. One of the main weaknesses identified in the SWOT analysis is the transportation costs. Gasoline is one of the main cost drivers of transportation costs. An issue with gasoline prices is that they are very volatile (Logan & Weller). The company is paying too much money delivering water products. The business model of the firm has to change somehow in order to reduce the firm’s transportation costs. The opportunity section of the SWOT analysis was limited. An opportunity for the firm is to land new contracts with other vendors in order to increase the product reach by having more distributors.

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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Work Cited

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Barrow, M. 2010. “What is the Population of Britain?” 28 November 2011. < http://www.woodlands-junior.kent.sch.uk/customs/questions/population.html>

Kotler, P. Marketing Management (11th ed.). New Jersey: Prentice Hall. 2003.

Logan, A, and Christian Weller. 23 May 2007. “Pain in the Gas: Volatile Gasoline Prices Wreak Havoc on Household Finances. 28 November 28 2011. <http://www.americanprogress.org/issues/2007/05/pain_in_the_gas.html>

Porter, M. January 2008. “The Five Competitive Forces that Shape Strategy.” 28 November 2011. Harvard Business Review.

Schermerhorn, J., James Hunt, and Richard Osborn. Organizational Behavior (8th ed.). New York: John Wiley & Sons. 2003.

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