preview

Marketing Strategy For New Business Development

Better Essays
Introduction
Healthy Potion is a business that specializes in producing a unique healthy beverage. It is in a good developing situation and has made considerable profits from its current business activities. However, the business that has reliance on one single product and single operation system might have difficulty in sustainable development in the long run. Therefore, it is significant for the business to work out plans for business diversification with improvement of its risk management for the future growth. This case study report will provide strategic analysis and strategy for new business development using SWOT analysis as well as some recommendations funds raising.
Strategic Analysis
Healthy Potion has a favourable business
…show more content…
As a private retail company, Healthy Potion has few external stakeholders and it means that the owner has the perfect control of all stores. In addition, the business has obtained a brand name, which has a large amount of recurring customers from the significantly increasing sales, and it helps to improve the customers’ power and loyalty (Guthrie 2008). However, there are several weaknesses existing in the business. The production of the beverages requires the importation of some special concentrate from China and that means there are high delivery costs and import duty costs.. Nevertheless, the single-product business model lacks diversity and can hardly satisfy customers’ expectation in products and have sustainable growth in the future. Healthy Potion is a business that produces unique healthy non-alcohol beverages, and it is a relatively new business in the beverage industry. That means the business has a tight budget and limited financial resources, such as funding, sources of income and investment opportunities (Australian Beverage Council 2013). The business also faces with opportunities as well as threats. Healthy Potion keeps in firm connection with Chinese suppliers and it can bring benefits to getting increasing reputation and competitive advantages in the international financial
Get Access