Swot Analysis : Joint Venture

1430 WordsMar 26, 20176 Pages
Assessment Task 2 • Analysis of opportunities available include: Joint ventures, Franchises, Licensing, Exports and Strategic Partnerships. • Cost-benefit analysis and Return on Investment (RoI) to determine financial viability of the opportunity. • Which opportunity is better suited according to business goals and capabilities and its impact on current business and customer base. • Compare the risks associated in both opportunities in terms of business and financial viability. • SWOT analysis of potential and existing customers. • Using the assessment of viability, impact and contribution to the business, rank the selected opportunities and recommend one for the business to pursue. Available Marketing Opportunities Joint Venture: By…show more content…
Rank: 3 Franchises: Given the nature of the import business Zie are looking to undertake, a franchise structure is very unlikely to yield any great returns. Given that Zie do not plan to sell directly to the public, they would have no need for franchise retail outlets. Similarly, given they are a producer of a set product, the franchise structure is unlikely to be suited to them, they are more likely to see more benefit from either a joint venture with a local producer, or by forming strategic partnerships with local importers, distributors and retailers. Costs o Increased production volume costs ie staffing, running and maintenance etc. o Labelling, Bottling and packaging costs. o Import taxes, tariffs and alcohol sale duties etc. o Increased transportation costs etc to deliver product to franchises. o Local Marketing costs. Benefits o Ability to directly retail or distribute within country. o Given franchise base in country, likely to obtain tax benefits etc. o Annual royalty payments and share of profits from franchisees. o Larger footprint within network whilst divested risk. Return on Investment Diminished ROI given Franchises are likely to retain share of profits. Rank: 5 Licensing: By implementing a licensing system, whereby much as they do in France, they produce wines which are then sold under license to larger wineries to then produce their own product from, this is likely to be the easiest market entrance. This is
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