Zaky Consulting Inc: CleanSpritz Case Solution

poster five forces

In order to help the decision makers of the company, Dr. Michael Porter presented 5 forces model, the analysis of which can help the company in aligning its current strategies for the future growth.

Buyer power

Due to the prevailing economic recession in the industry, the buyers’ power is relatively high because of the presence of substitute products which helps them in easily switching to them.

Supplier power

The suppliers’ power for the given company is relatively very low because currently very less amount of manufacturers are concerned with the greenhouse effect, which the company through its proposed product is offering.

Threat of new entrants

Due to the minimum amount of competitors present in the market, because of less focus on providing the green products. Moreover, as these products require huge startup cost, which works as a barrier for the new entrants in this business concludes the fact that the threat of new entrants is low.

Substitutes

This is the biggest threat for the company as the market is full with the substitute products for the household cleaning products which can create threat for the company however,due to the innovative nature of the proposed product, this threat is not much significant for the company.

Degree of rivalry

By analyzing the case, it can be seen that the degree of rivalry is medium because currently no competitors are focusing on the meeting the demands of the consumers in a way that this company is providing. The main concern of the consumers is related to the environmental issues as well as the cost of the products. With the help of the proposed product, the company is in a better position to meet the demands of the consumers.

Quantitative

In order to analyze the situation quantitatively, each of the four different alternatives including the re-launching of 3:1 concentrate, 4:1 concentrate using recycled pouch, 4:1 concentrate using dissolvable packet and do nothing are analyzed by checking the projected standard units, containers per standard units, projected containers, revenues per standard units as well as profit per standard units. After the quantitative analysis, the capability of each alternative in generating the profits would be analyzed which can help the company in making future directions for growth.

The quantitative analysis of the four alternatives with the company is present in the exhibits. The addition of the proposed product can help the company in achieving the demands of the consumer in the more efficient way as compared with remaining on the company status-quo and not doing anything. Moreover, the situation is also feasible by checking the cannibalization rate for the existing products as summarized in the exhibits below.

Implications of Analysis

By analyzing each one of them, it can be seen that after the sales potential and the risks factors associated with each alternatives are being analyzed, the recommended strategy in the given case for the company is to add 4:1 concentrate using the recyclable pouch in its product line which can help the company in not only in gaining the good returns however, it also focuses on providing the green product which is the demand and concern of various consumers for the said product.

Key Issues

The key issues in the given case are given below:

1. Environmental concerns

2. Ease of use

3. Efficacy of concentrate

4. Fierce price competition

Urgency-Importance Matrix

Importance
low high
Urgency high 1.      Environmental concerns

2.      Ease of use

low 3.      Efficacy of concentrate

4.      Fierce price competition

Marketing Strategies

The alternatives within the company are given below:

1. Re-launch existing 3:1 concentrate

2. Add 4:1 concentrate using the Recyclable Pouch

3.Add 4:1 concentrate using the Dissolvable Packet

4. Base case / status quo (Do nothing)………………

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