Strategies act as a central doctrine for the companies and organizations in terms of prioritizing the activities. As a matter of specification, strategic approach towards the business activities prove beneficial in completion of the tasks within the stipulated time frame (Serra & Kunc, 2015). This assignment delves deep into the strategies adopted by Biotech in terms of securing their position within the competitive ambience of the market.
From a small apothecary shop, Biotech became a small manufacturing plant in 1932. By 1934, Biotech succeeded in expanding the sales into the markets of New York. At this stage, the sales revenue of Biotech experienced an upsurge, as the customers exposed an inquisitive nature into the products manufactured. Currently, the annual sales revenue of Biotech is $35 billion. Barney holds the sole proprietorship of the company. He is a proud man, as he has emerged successful in taking the operations into the markets of US, Europe, Asia Pacific, Latin America and Caribbean and Canada (Biotechlife.com, 2018). The personnel of the company envisions enhancement of the standards of lifestyle for the customers through the delivery of quality health supplements. The mission of the company is ensure that the health needs of the customers are catered through the production of safe, effective, natural and affordable health supplements.
Strengths
Wide supply chain network is one of the greatest strengths of Biotech. Typical evidence of this lies in the presence of huge workforce, which provides support regarding the efficient execution of the activeties. The operations of the company are widespread, which indicates strong customer base (Biotechlife.com, 2018). Variety in the product lines is assistance in terms of preserving the purchasing power of the customers. Strategic approach in terms of expanding the sales is appropriate in terms of dealing with the competitors effectively and efficiently.
Weakness
Lack of target segmentation is the cause behind plans like selling the products to everyone. Selling the products to the local peddlers, receiving commission is illegal. This is a violation to the ethical code of conduct as well as the buying power of the customers.
Opportunities
Increasing the product line is an opportunity for Biotech in terms of gaining new customers. Strategic approach in terms of developing long term goals would help the company personnel in securing their position within the competitive ambience (Biotechlife.com, 2018). Growing demands for bio-nutraceutical marketplace is an opportunity in terms of expanding the market share.
Threats
Lackadaisical approach towards the conducting business process re-engineering would compel the personnel to encounter vulnerability in the market position. Not involving the HR faculties in the decision-making process would aggravate the complexities in terms of implementation of the strategies.
Political
Political unrests and harsh tax impositions adversely affects the import and export activities of Biotech. On the other hand, EU Commission provides guidance and support to the company in terms of carrying out the activities according to the legislative requirements (Biotechlife.com, 2018).
Economic
Increase in the sales revenue expanded the market share for Biotech. Accumulating the health supplement assisted the company in taking the sales revenue to $20 billion. This is due to alliance with the trade union members, which helped in dealing with the instances of inflation, high exchanges rates and high prices of raw materials.
Social
The lifestyle of the customers are changing. In the fast paced life, the health supplements need to be such, which provides energy to the customers for dealing with the pressures (Robson, 2015).
Technological
Social media marketing helps the company in increasing the trafficking of the audience towards the brand image. Uploading the product specifications on the websites and the social networking sites helps the personnel in achieving large scale customer satisfaction.
Legal
Adhering to the marketing legislations is assistance in terms of achieving loyalty, trust and dependence of the customers. Typical example of this is Consumer Protection Act, which is directly related with the business of Biotech. Complying with the standards and protocols of European Commission and National Health Survey are mandatory for the company in terms of ensuring the wellbeing of the customers (Scarborough, 2016).
Environmental
The company staffs use natural ingredients in preparing the health supplements. Using solid waste management techniques helps in maintaining the cleanliness and hygiene within the workplace premises.
Threat of substitutes
As the number of competitors are huge, the threat of substitutes is high for Biotech. The health supplements by GlaxosmithKleine and Nestle can add vulnerability into the market position of Biotech.
Bargaining power of the suppliers
The raw materials for the health supplements are the distributors and the agencies, who rule the markets of US, Europe, America and Canada. Therefore, in order to extract high prices for the services, the personnel need to indulge in contracts (Biotechlife.com, 2018).
Bargaining power of the buyers
The customers in the present generation are tech savvy, which indicates their high bargaining power. Their needs, demands and requirements are ever changing. This is especially applicable in terms of healthcare. Mention can be made of the women customers, who are concerned about the health.
Threat of new entrants
The threats of new entrants are high in this case because the startups are looking for market expansion. The product line expansion by established brands can add vulnerability into the market position of Biotech. Typical example can be health supplements by Nestle, which would result in customer turnover (Biotechlife.com, 2018).
Competitive rivalry
The competitive rivalry is intense, as the competitors are huge in number. Personal skincare products of Nestle can give intense competition to the night cream products manufactured by Biotech.
One of the goals is expanding the sales revenue, which can be achieved through the objective of expanding the market share, maximizing the profit margin and conducting target segmentation. Expanding the market share into Arab countries would be effective if standards and protocols of EU are followed. One of the other goals is increasing the production lines. Here, the objective can be to develop cosmetic products, which have natural flavors, conducting quality assessment and to conduct total quality management. This would effectively cater to the health needs of the customers. The third goal, which the business unit of Biotech can develop is bringing innovation within the products. For this, the objective would be to revise the recruitment and selection procedures, prepare budget for training and development programs and conducting marketing mix. If the employees are trained about the use of technologies, they would be able to manufacture innovative products.
Fourth goal can be to ensure the protection of the suppliers. For this, the objective would be to develop policies related to the contracts, deals and transactions. Revising the existing policies along with revision of the legislation and protocols of marketing legislations would be effective in terms of dominating the suppliers in terms of delivering quality products to the clients and the customers. Business Process Re-engineering (BPR) methodology can be one of the goals for Biotech. For this, the objective would be to indulge in meetings with the experts in terms of conducting review of the business operations. This review would enhance the awareness towards the need for additional resources. Within this, consideration of the previous years’ financial reports would be beneficial in terms of modifying the mistakes.
Conclusion
Strategic approach is beneficial for Biotech in terms of achieving the planned market expansion. For this, development of real and achievable goals need to be developed, which would improve the focus in the business activities. Business process re-engineering is appropriate in terms of upgrading the standards and quality of the business operations. Marketing mix is crucial in terms of gaining an insight into the prospective customers, who would increase the sales revenue and profit margin.
References
Biotechlife.com 2018, About us, Retrieved 14th September 2018 from www.biotechlife.com
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343.
Parés, M. (2015). Market?Based Social Innovation: Are Business Strategies and Social Change Compatible?. Public Administration Review, 75(4), 628-631.
Robson, W. (2015). Strategic management and information systems. Pearson Higher Ed.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.
Serra, C. E. M., & Kunc, M. (2015). Benefits realisation management and its influence on project success and on the execution of business strategies. International Journal of Project Management, 33(1), 53-66.
Slocum, J., Lei, D., & Buller, P. (2014). Executing business strategies through human resource management practices. Organizational Dynamics, 43(2), 73-87.
Venkitachalam, K., & Ambrosini, V. (2017). A triadic link between knowledge management, information technology and business strategies. Knowledge Management Research & Practice, 15(2), 192-200.
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