Aloha Products Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Aloha Products Case Solution

The Aloha Product Company is a centralized company and this is the major weakness of this organization because in this type of organizations, all decisions and processes are strictly handled through the company’s top level management or owner so, any managers of the organization are not to be able for quick & immediate decision and this is the main reason is that organization are not to be avail all opportunities.

Specifically frost and drought or unexpected weather is the major reason behind the production and price of the coffee bean crops being highly affected. Aloha coffee company has different opportunities which can be availed in order to have better sales profit and fast growth through bringing change in their coffee products. Aloha Company’s has a mion in the market but the company can even have a better position in the market if it opts to expand its offers with other items on customers’ demands, such as: other drinks and food items.

Aloha coffee company can expand its product line in developing markets such as all over the United States, as doing so might turn out to be great opportunity for the company to becoming a huge brand in different markets in the sense of goodwill, product and financial position.Introduction of latest coffee trends through collection of the customer’s feedback and creation of new and different product can beat the company’s old products.

Parenting with other companies, such as: established corporation by co-branding can also turn out to be more beneficial for Aloha Company. Co-branding is the marketing planning in which the Aloha Coffee Company would have to maintain its planning association with large corporations, and through this strategy the Aloha Coffee Company would be capable of increasing its sales revenue.

Competitors are the main factor affecting the organization growth and development of the company. Nestle is the biggest competitor for all coffee companies throughout the world. Nestle Coffee Company competes through new products, new business models, customers, price and quality etc., making it a major threat of Aloha Products Company.

VRIO Analysis

Another model used to assess the company internal environment is known as VRIO frame work. Appendix 2 shows the value, resource and competitive advantage of the company.

External Analysis

To analyze Aloha’s external environment and the associated environmental factors that exhibits Aloha, following strategic models can be used:

Porter’s Five Forces Model

The Aloha products case is the unique opportunity for the company. Since Aloha Products’ creation is consisted of common methods and average; the methodology can undoubtedly utilize mass assembling. This leads to the prompted openness of development and range, there has really been disequilibrium in the Aloha Products area. By building the strong consumer relationship and high brand loyalty; the Aloha Company can continue to strive better in the market. Appendix 3 shows the porter’s five forces model of Aloha Company.

Aloha Product Company faces the huge force of competition in the coffee industries. In this case the factors contributing to the competition forces are large no. of organization, average or medium variety of organization and low switching costs.

The large and big organizations act as important external factor that boost or enhance the competition in the market. Different competitors of Aloha Product Corporation are comprised of different sizes. The community or society of competitors are averagely mixed in terms of specialty and planning. In this case, such medium variety of organization further reinforce the level of competition in the organization because of the low switching costs being the drawback for the company as tit enables the buyer to easily shift from one provider to another.

There is also a major factor which is the strong bargaining power of the customers. In Aloha Corporation’s case, the factors of the strong bargaining power of customers are low switching costs, large alternatives’ availability and Minimum quantity demand of individual buyers.

In the low switching cost, consumers can comfortably shift from Aloha Product Company to other brands because there are many alternatives available which are offered by different companies. The individual minimum purchases equate to the low impact of individual consumer on the business. The 4P’s of the Aloha Product Corporation are: product, price, place and promotion, whichsupport the brand to be strengthened.

Aloha Coffee Company faces the weak force or bargaining power of suppliers and this force has the great impact on distributors of the organization. The weak supplier’s bargaining power on Aloha Coffee Company is because of the medium size of individual distributors, high variety of distributors and large supply.

The medium size of individual distributors is the major factor that imposes a medium force on Aloha Coffee Company. Even so, the high variety of distributors greatly impacts their bargaining power.

Aloha Coffee Company faces the strong threats of substitution, which is highly impactful on product and environment of the business. The strong forces or threats of substitution of Aloha Coffee Company are alternative products’ availability. Second strongest factor that tends to affect the company’s products is the low switching cost.

The alternatives have strong potential to generate unfavorable results for the organization. The alternative availability of products makes it easy for the buyer to switch to another product, as the alternatives of coffee are easily available from various outlets. The low switching cost is also a big driving factor for the buyers to easily purchase other alternative products which act as the competitive products against the Aloha Coffee Company products.

Aloha Coffee Company also faces the threat of new entrants. The threatening factors posed by new entrants towards Aloha Coffee Company are medium cost of performing business, medium supply chain cost and high cost of brand development.

The medium cost of performing business is connected with the irregularity of the real cost of performing operations in the coffee company. For example: the operation cost of a small coffee company is compared to the operation cost of a coffee company chain, which means that small coffee company hapless supply needs and as compared to the needs of the supply chain. These elements can enable the smaller firms to perform business and compete against Aloha Coffee Company.............................

Aloha Products Case Solution

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