UIC MBA 2010 Corporate Strategy 수업 리포트

UIC MBA 의 Corporate Strategy 수업은 에비게일이라는 중년의 부인이 가르쳐 주셨다.

그부은 부학장까지 하신 분인데 강단이 있으시고 정말 멋지신 분이었다.

수업늦게 들어온 친구에게는 시험지도 주지 않았는데 우리팀이었던 모니카가 하루는 늦게와서

그만 그 희생양이 되었다. 그런데 항변을 했으나 교수님이 받아주지 않자 30 다된 여학생이

엉엉 운다. 상상해봐라! 다른 애들은 쪽지시험보고 있는데 한 학생은 엉엉 울고 잇으니.

지금 생각하면 참 추억인데 그때는 모니카 완전 좌절 모드였다. 그래도 은근과 끈기로 모니카는 이과목 A학점을 받았다.

 

하루는 Baser Food라는 회사 케이스를 가지고 SWOT분석을 하였다.

팀별로 프로젝트를 했는데 우리조는 거의 나랑 태국아이 팻, 그리고 중국출신 어린 유부녀

그레이스가 거의 다했다. 레오와 주단은 영....암튼 Baser food회사케이스에 대한 우리의 케이스 스터디 리포트를 올려본다!

 

PROBLEMSTATEMENT

Should Baser Food focus on domestic or international market to support growth strategy?

Recommendation

1.      Expand business in USA

·         Strengthen brand equity by more advertising and IMC

·         Build more new distribution channels such as online marketing

·         Widen new market segment: support healthy benefit information in free media such as radio, television and word of mouth

·         Give free sampling and coupon discount in the main market like New York

·         Develop taste event to let customer know our product.

2.      Open new market in Australia: People interested in health benefit and less price competitive.

·           Pursue push strategy to create partnership with local distributor by  

 offering them allowances.

·           Built brand awareness to customer by advertisings

·           Provide tour Mediterranean by olive oil lottery event ticket  

3.      Open new market in nontraditional countries such as China and India: Some segments might concern their healthy.

·          Create awareness of product by using mass media inform healthy benefit to consumer.

·          Generate brand equity

·          Set up distribution system through partnership and built strong relationship.

4.      Keep the advantage situation in domestic market.

·         Do more advertisements and sales promotion to increase the market share.

·         Developing new product such as beauty product to decrease the risk from the single product line.

·         Using P.R.to build the company image.

 

STRENGTH

Ø  Broad market coverage: USA, Russia and about 20 countries

Ø  High brand value in world market

Ø  Differentiate and unique product: this is only edible oil from fruit and good for health.

Ø  Leading industrial, commercial and financial group.

Ø  Good distribution:  exclusive distributor

Ø  Meet the standards of IOOC/FDA

Ø  Specialized in production of olive oil(quality, packaging, label)

Ø  No 1 exporter of Turkey-37%

WEAKNESS

Ø  Climatic condition

Ø  Production level?

Ø  Depend on Spanish, Italy brand reputation( low brand value)

Ø  Only one supermarket channel.

Ø  Less consumption in country

Ø  Resource constraint

Ø  Poor marketing skills. Absence of advertisement about private label and olive oil supporter

Ø  narrow product lines about Olive oil

OPPORTUNITIS

Ø  Expand core business: China and India because they has large populations

Ø  Widen new market segment: Many country pay more attention to their healthy and increase in consumption.

Ø  Turkey has exported to 70 countries

Ø  Growing domestic market:10-15% per year

Ø  Double growing international market

Ø  Emerging consumers' need. /Enter a new related business (benefit from the skin and hair care) "olive oil was believed to contribute to a soft, healthy, young-looking skin."

Ø  Support policy from Turkey government. To encourage and support domestic olive oil industry. the government adopted a variety of subsidies. For instance, they reward the farmers who plant oil trees, give the benefits for using diesel and fertilizer and encourage the export of olive oil. In 2006, the company can gain 10% of the award per ton, but the tax of import was as high as 31.2%.

THREAT

Ø  Customer taste: in China.

Ø  Increase in domestic compete(Local producer)

Ø  Rise in substitute product: sunflower oil and corn oil

Ø  Downturn in economy: Turkey faces with high inflation rate and real income drop.

Ø  Change in consumer taste: switch to cheaper product (Turkey).

Ø  Domestic market was shrink 10%  in year 2,000

Ø  Weak government support

Ø  High cost of global expansion

Ø  Low export margin: 15%

Ø  Risk in collection of account receivable

Ø  Resource constraints

Ø  Entry barriers from the international market/political and economic risks from operating in foreign counties High energy cost/Law- high taxes

Ø  (The cost of coordinating and communicating with foreign subsidiaries.)

ANALYSIS

1.      Why Baser Food should expand in U.S.A market          

In American market baser food has less brand equity (weakness) but our products are well known for high quality in the world market. Thus we should strength brand equity by advertising and IMC.

                           According to the information since market growth is 28%, import volume growth is 15% and people are getting more conscious their healthy benefit (household penetration 30% opportunities), Baser Food can widen new segment with our high quality product(strength).

                           As a result of increasing in household penetration, Baser Food should promote free sampling, coupon and taste test event to improve brand awareness and needs to announce its quality certificate of the standards of IOOC/FDA(strength).

                           In addition, Baser Food needs to increase more distribution channels such as online channel to increase sales because the company has only supermarket channel in USA.

2.      Why Baser Food should open new market in Australia

As Australia is getting concerned their health and familiar with olive oil (opportunities), the company should make an effort to build up brand equity (strength) with high quality product and provide advertising/promotion (weakness).

As import growth rate is 15% per year, the company should pursue push strategy to create partnership with local distributor by offering them benefits like allowances to take higher market share. With a No1 exporter premium, the company can give strong trust to local distributors.

3.      Why Baser Food should open new market in nontraditional countries

Even though the company should invest much in informing health benefits and product awareness to consumers, the company can gain more advantages as a first mover. The high quality product of the company will convince consumers who are concerned about health that it is a best choice.

As the company is good at building exclusive distributors, Baser Food can establish good distribution system.

4.      Why Baser Food should keep the advantage in domestic market

As domestic market is the core one of its business, Baser Food should keep its market leadership (strength) by more promotion, advertisement and PR (weakness).

The company can also develop new olive oil-related product such as skin and hair care product by investing in R/D (weakness). Baser company need to create new product lines (opportunities) because olive oil is affected by climate condition (weakness). Its high technology (strength) can result in high quality new product which gives them more profits and bigger market share (opportunities).

 첫번째 problem statement쓰는 것부터 무지 신경써서 주제를 잡아야 했는데 이 단순한 작업에서 많은 것을 배웠다. 그런데 재밌는 것은 공부할땐 참 잘했는데 왜 이렇게 실생활에서 활용을 못하는지... 반성하고 계획적인 삶을 추구해야겠다.

 

학교앞 타이볼앞에서 태국친구 팻과 함께!!!