The A2 Milk Company Case Study Help
Technological
The Company is highly focused on the Research and Development of its new products.It uses latest technology to make such milk formula(powder), which helps itsconsumers, before, during and during the pregnancy.
Ecological
A2 milk bean dust is manufactured bySynlait Company. The sustainable strategy of the company is to reduce 1 kg of milk’s solid production, in order to install electric boilers instead of coal-fired boilers, with 50% of total greenhouse gas emissions, and 20 percentof water / kilogram of milk products.
Legal
Legal factors are considered to be immenselyimportant foroperating a business in a country. In short, it depends on how long it takes to over-enforce the law. The corporate governance rules adopted by a2Milk are intended to oblige all of its employees to perform their duties and to protect the shareholders ‘interests. In short, all factors have a significant impact over a company’s success.
Options:
Option 1: Maintain the current business model and strategy.
- The patent expires.
Option 2: Target competitors in the general market.
- Loss of the premium price.
Option 3: Focus mainly on R&D and innovation.
- "a2 course"
- Resourceful destruction.
Recommendations:
The chart in Appendix 1, shows the performance of a2 Milk Company’s share price. The share prices are calculated by using the share price of March 2011, i.e. 100 as a reference price, followed by the share price based on the calculation of the annual stock’s price performance.
Breast-milk substitutes account for more than half of a2’s total income. The infant based formula is mostly from China. Powdered milk is transported from Australia to China, through a so-called “gray channel”. The Gray Channel accounts for 45-50% of sales of a2’s infant based formulas in the Australian continent.
The recently signed free trade agreement between China and Australia, could eventually make the gray channel disappear. In my opinion, the contract will promote the sales of infant products in China. In fact, a2 Milk is able to gain the market share without imposing imports on the infant based milk formulas marketed in China.
In addition, a2 Milk hasalso planned on expanding its product portfolio in the UK, and it intends to sell its products primarily in the Chinese market;therefore, the best solution for the company is to reduce the current premium-based price and to have a better response when it enters the Nestlé dairy market...............................
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