Discuss about the Global Business Situation and Opportunity Analysis.
The main aim of this task is to explain and outline the business activities and operations of the organic food company. It shall be noted that organic food is one of the biggest industries in the world. Bellamy’s Australia that is a organic food company has been taken in the task. The company delivers organic food products to the customers in the Australian market in order to attract maximum number of consumers. Along with this, the paper explains the SWOT analysis and pestle analysis that help to analyze and identify the threats and opportunities of rivalries. In addition, here is the discussion about the porter generic strategies that include cost leadership strategy, focus strategy and differentiation strategy. These strategies help the company to manage the business activities effectively. Moreover, the paper explains that how Bellamy’s Australia uses diversification strategy in the marketplace. It discusses how this strategy provides competitive benefits to the firm. More detail of the task have been discussed below.
The organic food industry plays a vital role in each and every country. Organic food is a food produced and manufactured by the methods complies with the standards of organic farming. Bellamy’s Organic is an Australian organic infant formula and baby food company and is the parent company of Bellamy’s organic. The organization serves its products in various countries such as Australia, China, Hong Kong, New Zealand, Malaysia and Singapore. Bellamy’s Australia is a major food and beverage company in the world which was incorporated in 2014 in Australia. It is the biggest organic infant formula producer in the world. The organization structure of the company is unique and strong (Bellamysorganic, 2018). The company produces organic food for the babies, young children and toddlers. The firm offers formula, and toddler milk drink, snacks, cereals and rusks to serve baby food as well as powered milk products in the Australian market. The organization sells its products to retailers and distributor in the country. With effective organization structure, the company has been able to attract wide range of consumers in the international market. The organization structure of the firm has been detailed below.
Micro environment: The micro environment plays a significant role in each and every country. Bellamy’s Australia focuses on the micro environment to beat the competitors in the market. The company can control on the micro environment after considering the plans and policies of the competitors. SWOT analysis is done by the organization to identify and analyze the threats and opportunities of the market as well as competitors (Löfving, Säfsten and Winroth, 2014). SWOT analysis stands for strengths, weaknesses, opportunities and threats. SWOT analysis for Bellamy’s Australia has been discussed below.
Strengths
Weaknesses
Opportunities
Threats
Macro environment: This environment affects the success and growth of the in a large extent. The company cannot control over the macro environment factors because these factors are uncontrollable. Pestle analysis is done by the firm to analyze and evaluate the market conditions, risks and threats of the competitors. Pestle analysis for Bellamy’s Australia has been detailed below.
Political factors: These factors play a significant role in determining the profitability and success of Bellamy’s Australia. The company is operating in food, beverage and tobacco in various countries. Thus, various political factors affect the progress of the firm. The company needs to focus on the rules, regulations and norms that have been made by the Australian government. The political factors include level of corruption, political stability, risk of military invasion, antitrust laws, and tax rates and incentives (Morris and Metternicht, 2016).
Economic factors: There are various economic factors such as inflation rate, savings rate, exchange rate, interest rate and employment rate could affect the outcomes and revenue of the firm. Bellamy’s Australia limited can use country’s economic factors such as inflation, growth rate. The company should consider the various factors while initiating the business activities and operations. It needs to focus on the exchange rates, government intervention, exchange rate, economic growth rate and discretionary income. It will help to overcome the competitors in the Australian market.
Social factors: The social factors include culture, values, beliefs, customs, and tradition of the people that could affect the business activities and operations of the firm adversely as well as positively. The society’s culture and way of doing things impact on the culture of the firm. Shared values and beliefs of the population play a major role in how the marketers at Bellamy’s Australia will understand and evaluate the customers of a given time period and how they design marketing message for the food, tobacco and beverage industry consumers. The company should focuses on the various factors such as skill level of the population, culture, attitudes, leisure interests, gender and age of the people while implementing the new business operations (Grade, 2013).
Technological factors: Technological factors play a significant and effective role in order to attract new and existing employees within the organization. On the other hand, technology is quickly disrupting the various industries across the world. As the same way, it also affects the sustainability and revenue of the Bellamy’s Australia. Latest and new technology shall be used by the company when producing new and innovative products in the international market. Bellamy’s Australia must not only do technological analysis of the industry but also the speed at which the technology disrupts that industry. It will help to strive with competitors in the global market. Recent technology shall be developed by company to gain competitive advantages in the marketplace (Pomeranz, 2013).
Environmental factors: The different countries have different norms and standards which can impact on the progress and profitability of the firm. Before entering in a new market or implementing new businesses in existing market the firm must focus and analyze the environmental standards that are essential to operate in those markets. Bellamy’s Australia should focus on the weather, climate change, air pollution to reduce and eliminate the future risks and challenges.
Legal factors: There are ample of legal factors that influence the progress and target of the firm. Bellamy’s Australia must focus on the legal factors to stay in the competitive market. No company can survive and grow its business without analyzing and evaluating the legal factors. The legal factors include antitrust law in food, beverage and tobacco industry, copyrights, patent, health and safety law, consumer protection law and e-commerce (Aurand, 2013).
In today’s competitive world, the firm is increasing and enhancing the revenue and profitability day by day. The competitors could affect the sustainability and outcomes of the firm adversely. The company can gain various competitive advantages by analyzing and evaluating the plans, policies and strategies of the competitors. The main competitors of the firm include Bega, a2 Milk, Make school, and GREE (Obolensky, 2017). These competitors may influence the activities and operations of the Bellamy’s negatively. Bellamy’s Australia is making unique and innovative strategies to beat and hit the competitors in the global market. It uses unique packaging strategies to cope up with competitors. It shall be noted that the company differentiate its products from the competitors to attain competitive benefits in the rivalries market. It has made a unique position in the Australian market which provides a competitive advantage to the firm. Along with this, the firm provides organic food at appropriate prices to attract and increase the number of customers. Pricing strategy can be an effective rivalry advantage for Bellamy’s Australian limited company.
After the various researchers, it has been analyzed that Bellamy’s Australia uses porter generic strategies to attain maximum level of outputs and results in Australian market. By using generic strategies, the company has been able to become a global leader in the organic food industry (Bry?a, 2015). The porter generic strategies that are used by Bellamy’s Australia have been detailed below.
Cost leadership strategy: This leadership strategy helps the organization to meet the long term goals and objectives effectively. Cost leadership is establishing a competitive advantage by having the lowest cost of activities and operations in the organic food industry. This leadership strategy is developed by Michael porter. By using this strategy, the company has been able to identify the plans and actions of the competitors. Along with this, lower price is charged by the organization to increase and enhance the maximum number of clients in the global market. This strategy also helps in expanding the market share of Bellamy’s Australia. Under this strategy, the firm focuses on the prices of the competitors to distinguish the prices of the organic products and services from the competitors. The company can set the suitable and appropriate prices of organic products by initiating the cost leadership strategy (Teeratansirikool et al, 2013).
Focus strategy: One of the significant strategy that used by Bellamy’s Australia is Focus strategy. This strategy is used by the firm to focus and identify the demands, needs and requirements of the target audience. It is one of the three generic marketing strategies that increase revenue and growth of the firm (Dubuisson-Quellier, 2013). By using this strategy, Bellamy’s Australia can satisfy the needs and requirements of the consumers in the international market. Furthermore, this strategy increases and enhances the morale and confidence of the customers towards the organization. This strategy also helps in making a dynamic image in the eyes of the target audience. The focus strategy is divided into two parts such as differentiation focus and cost focus (Brenes, Montoya and Ciravegna, 2014).
Differentiation strategy: Under this strategy, marketing campaigns and programs are conducted by Bellamy’s Australia to attract maximum number of consumers globally. By using this strategy, the company provides information related to quality and aspects of the products to the consumers in the marketplace (Davcik and Sharma, 2015). The differentiation strategy helps the firm to differentiate its products and prices from the competitor’s products and prices. This strategy involves differentiating it from competitor’s product as well as company’s own products. Under this strategy, Bellamy’s Australia renders organic food and beverage products for the different customer segments in the rivalries market (Grant, 2016).
After the various studies, it shall be noted that Bellamy’s Australia uses diversification strategy to diversify its organic food and beverage products in the huge market. Mainly, the firm uses this strategy to enter in the new market (Neubert, Wu and Roberts, 2013). By using this strategy, the company has been able to produce various types of food and beverage products in the international market. This strategy provides a wide range of benefits to the investors and consumers as well. The diversification strategy protects the capital from the wild swings of the market while attaining long term goals and objectives (Grade, 2013). If the company focuses on the products and plans of the competitors the diversification strategy can become successful. This strategy helps to increase and enhance the market share of the firm. By using this strategy, the firm can reduce and eliminate the risks and challenges of the market (Karneta and Gultom, 2017). Besides this, Bellamy’s Australia has been able to produce new and innovative organic products with the help of diversification strategy. No company can expand and explore the business activities and operations without using diversification strategy at the workplace (Bauer, Heinrich and Schäfer, 2013).
Although Bellamy’s Australia limited is attaining long term goals and objectives but still it needs to focus on the management to make a strong financial position in the marketplace. Some of the recommendations have been stated below.
Conclusion
On the above mentioned analysis, it has been evaluated that Bellamy’s Australia is one of biggest brand in the Australia. It provides various types of food, beverage and tobacco products to the consumers in the country. The above mentioned analysis shows that how the uses pestle analysis and SWOT analysis to reduce and avert the challenges and risks of the marketplace. Besides this, porter generic strategies are used by the firm to meet the long term objectives and targets and further, this strategy helps to destroy the competitors in the market. The paper explains the diversification strategy that is used by the company in the global market. At the end, some business and functional level recommendations have been given to become successful in near future.
References
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