Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
Finding a better brand to launch between Forbidden City and The Wild Dog has caused heated conversations between two EBC (Eurasian Brewing Company) executives. It will help to conclude if launching either of the brands is a flawed strategy or a poorly executed but good strategy. SWOT and PESTEL analysis will be used to evaluate circumstances that have impacted EBC operations. Examining the strengths, weaknesses, opportunities, and threats facing EBC will provide an overall view of the company’s position.
SWOT Analysis
Launching either Forbidden City or Wild Dog brands has some strengths for EBC. The brands will ensure diversification of market segments, leading to EBC not depending on one particular market. It will happen because either of the brands has the potential to be a global product. Another strength is that launching the brand will ensure that EBC treats the market as one unit, leading to quality products, as the company will not have divided attention. On the other hand, the strategic approach used by EBC has some weaknesses (Clauss et al., 2021). For instance, the merger between two companies brought the disadvantage of absorbing employees from prior entities who failed to perform in the new formation. Another drawback is that the newly formed company lacked a reputation compared to other Chinese competitors.
The strategic approach used by the two executives provides EBC with different opportunities. The company has the chance to introduce a brand that will be globally recognized. Another option is that EBC has the opportunity to produce a local brand that will compete with brewers in China. Additionally, the local brand can potentially expand to the international market after making China a strong base. On the other hand, the strategic approach can cause threats to the company (Clauss et al., 2021). While introducing the new brand, the company can face the threat of not complying with the laws and regulations of China. Additionally, the company faces the threat of the brands not being accepted by consumers in the Chinese market.
PESTEL Analysis
EBC is surrounded by external factors that directly have contact with its operations. In the brewery industry, favorable political factors in the external environment favor all the players, including EBC. Political stability has enabled EBC to launch Wild Dog in Singapore and have different acquisitions within China. Additionally, ecological factors from the external environment show sustainable practices by EBC. The company prioritizes producing alcohol products that are user-friendly to consumers.
The social factors have significantly influenced EBC’s competitive advantage. The company’s employees use the cutting edge to ensure its products are cheaper and its brands gain a reputation. Additionally, technological advancement has played a significant role in influencing competitive Advantage in EBC. The company has been able to implement mergers and acquisitions, delaying the expansion of its business in the entire of China (Clauss et al., 2021). Therefore, social and technological factors have significantly influenced the competitive Advantage of EBC.
Due to economic factors, EBC’s operations have been affected in numerous ways. The company increased its merger and acquisition within the Chinese markets but failed internationally. It had no global investment as it is concentrated in Asia only. Additionally, when operating in the local or foreign market, there is a need to comply with legal requirements, regulatory bodies, and laws. The case study shows no evidence that EBC was compliant with the legal factors.
Diagnosis of EBC Strategy
The strategies for introducing a new brand in the market were complicated because there was a heated conversation between the company’s two executives. Each executive believed that their brand could bring success to the Chinese market of the company. Due to this dilemma, EBC’s strategy failed because there was no agreement between the executives. Additionally, the escalation of issues led to forwarding issues to the higher hierarchy, where there is the possibility of rejection or acceptance of the strategy. Overall, the local growth strategy limits the company’s opportunities for expanding its customer base and market presence. At the same time, global strategy implies a more severe level of competition, which would require a more intensified performance.
Decision
The appropriate decision for the case study is the selection of a global strategy focused on the Wild Dog brand. Indeed, the resource-based theory holds that for a company to maintain its competitive advantage and stable growth in the market, its resources should be unique (Dubey et al., 2019). In particular, a company’s product should be difficult to mimic by other entities in the competitive market. In the case of the Wild Dog brand, its strong appeal to a distinctive customer base and a stand-out product image contribute to the company’s capacity to succeed.
References
Clauss, T., Kraus, S., Kallinger, F., Bican, P., Brem, A., & Kailer, N. (2021). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox.Journal of Innovation & Amp; Knowledge, 6(4), 203-213. Web.
Dubey, R., Gunasekaran, A., Childe, S. J., Blome, C., & Papadopoulos, T. (2019). Big data and predictive analytics and manufacturing performance: Integrating institutional theory, resource‐based view and big data culture. British Journal of Management, 30(2), 341-361.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.