Options Analysis

 

Founder and CEO of WPD has reached to the following alternatives: (Further analyzed in Exhibit- Financials below)

 

Option #1 -Manufacturing WPD products in Netherland

The first alternative in consideration is to sell and manufacture WPD products in Netherlands, Europe. This alternative was set in view of the demand of company’s products in the European market. As WPD lacks efficient delivery channels, it bears higher costs of delivery and hence the profit-margins are low. Starting manufacturing in Netherlands can help out the company in favorable position asbeing reachable andavailable to the market. Also, the existing plant lacks space for excessive production and holding inventory and is incompatible to catering the overall demand. We have assumed the data for the option and the changes will be observed in the sales due to growing industry of EU Markets;there is a decrease in the cost prices as cheap material and labor are available. The problem for the organization will persist as high capital labor is needed in this market.

 

Option #2 -Entering the Pet Insurance Industry

The 2nd alternative for this project is the pet insurance industry which the organization has considered.The pet security industry has increased to more than 14 billion in the industry and it is considerably increasing. This is particularly a new industry for the organization and considering the name of West Paw Designs industry in the market, the organization is at a beneficial stage to enter this market and earn good profits in this stance. The capital intensity is not great for this option but the expertise for this market is needed.Thus the organization needs to cater new resources and professional staff from the market.

 

 

Option #3 –Making an App for the Pets and their Products

The next option the organization has is to create an app for the Pet industry, which will cater the new market entering opportunity for the organization without making them switch their industry. In this way, the organization can also cater for the international market as more than 1.5 billion people have access to smart phones and the organization do not need to move to European markets physically. This will pose the same problem as hiring a team for the structuring of the app and increasing their revenues.

 

Recommendation

 

It is recommended to the organization to consider their goals first, profit maximization through a structure change or be a B Corp Organization and grow in the same move. If the organization wants to continue as a B Corp Organization, then the Options 2 and 3 are the best options on the table for increasing their profitability and enhancing their position in the market. If profit maximization is their objective, then it is recommended to opt for Option –1 of moving to the EU Market.

To conclude the SWOT analysis we say that it seems slightly visible that the positive points are in excess to the negativities or drawbacks for the company. Many of the explained weaknesses can be overcome in terms of the opportunities ahead. Lack of resources, space restraints………………..

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Share This