The ABC Company manufactures healthy, soft drinks. The products are sold under a generic name but come in different flavors. The primary goal of ABC is to provide soft drinks with nutrients for the old people and children. In addition, the company’s products could also act as a diet drink for adults and the youths. Over the years, ABC has been producing healthy, drinking products, and the company’s mission and vision tightly focus on the health of the customers nationally and worldwide.
On the other hand, the old people need nutrients and vitamins to boost their health. Aged persons do not have an active immune system, but with the help of these soft drinks from ABC, the elderly have a chance to restore their immune system. After boosting their immune systems, the elderly people can live a normal life and for longer.
However, ABC experiences some challenges in its environment. These challenges are both in the external and interior environment. However, in this case, we discuss the competitive, economic, legal, political, technological, and sociocultural forces. Like in every other business, ABC has competitors. The soft drinks manufacturing industry provides a platform for stiff competition from well-established companies. Coca-Cola, for instance, poses a big threat to the small companies in the soft drinks industry. As a well-known soft drinks production company, Coca Cola’s services and products dominate the industry globally. Even though Coca-Cola does not focus on healthy beverages, their products have taken over worldwide (Blaise, 2012).
Besides competition, ABC faces economic and political challenges. In the political scene, the company should register it products for approval as healthy products. There is also the issue of taxation. ABC’s products are termed as luxuries, and for this reason, such products are taxed heavily. On the economic front, the world’s economy regularly fluctuates, therefore, influencing the pricing of products on the market. For this reason, the finance officers at ABC should stay focused to avoid the imbalance of price and demand.
The world is changing at a fast pace due to the increase in technological innovations. Technology creates active and negative impacts on business. However, the adverse effects of technology do not have much influence on the company’s activities. Mostly, technology negatively affects the competition and production rate of an enterprise. The positive effects of technology on business include faster growth and increased capacity to produce (Ryan & Jones, 2012).
With the help of technology, ABC stands a chance of growing economically in the soft drinks market. A website could help reach out to potential clients and investors. The primary goals of ABC Company include profit maximization, optimizing social benefits, and security of the stakeholders. According to Google Analytics, the primary purpose of a business is to focus on maximizing profits for its owners (Find the audience you want, 2015). Also, the company should fulfill the interest of other stakeholders such as customers, employees, and even the society around it.
Regarding the products manufactured by ABC, many factors are considered. Variety, quality, design, packaging, and brand name play a significant role. A variety of products ensures that the clients have many options to select in the market. ABC provides its customers with a variety of healthy drinks from different farm products. For instance, the company produces fruits juice in various flavors. Also, among the primary products, there exists vegetable juices from different edible leaves and seeds.
The quality of the product will ensure that ABC’s clients develop trust for the services and products of the company. Quality will always tag along the packaging of the drinks. Packaging plays a significant role in marketing and advertisement. ABC should continue producing drinks in designer bottles that are attractive. The location or place of the business also matters a lot. A company can represent only one area at a time. Therefore, advertising could do the company a favor. Advertising ensures that the products manufactured by ABC Company gain awareness in the market. Advertising ensures that the sales promotion remains active and significant (Armstrong & Kotler, 2015). The promotion and price of the products contribute to the growth and development of ABC. The price of products will determine if the clients will opt for ABC’s products or other products in the market.
For ABC to succeed, its management should determine if the company could meet the long-term goals and short-term goals. The company should consider its competitors such as the Coca-Cola Company, Innocent Drinks Company, and Pepsi. In a period of five years, ABC Company desires to work towards meeting individual goals. ABC Company looks forward to growing in unexplored markets of the world. Growing globally means that ABC will ensure that the needs and desires of its customers are met.
However, ABC’s business activities experience a significant weakness because of focusing on a niche market. The products manufactured by the ABC could only be used for health purposes. In recent years, the 21st generation consumes alcohol and other non-healthy drinks more compared to healthy beverages. This scenario could pose a serious threat to ABC because the products’ demand could slow down in future.
However, despite the weaknesses of ABC products, the soft-drink market provides a platform for many opportunities. The healthy soft drinks could dominate the medical sector and sports companies. Most of the medical facilities prescribe nutritious drinks and pills for patients, ABC products could venture into the production of soft drinks that complement the needs of the medical industry. The move will win over a broad number of clients. Doctors in many countries and different facilities, however, should have trust for these healthy drinks.
In the sports industry, products from ABC could play a significant role in performance and health of sportspersons. Nutrients and vitamins are the primary cause of high performance and concentration. For example, the if the company can produce soft drinks with carbohydrates, this would be good for sports people because carbohydrates provide the body with strength. These opportunities offer a platform for ABC Company to expand and serve a variety of sectors in the business industry.
Given the analysis above, it would be suffice to say that ABC’s production is feasible both in the short and long-term. The company only needs to focus on its goals, improve on its weaknesses, and take charge of the opportunities that are available in the soft drinks market. For instance, the company can produce healthy soft drinks targeting sportspeople. It can also manufacture soft drinks that complement medicinal drugs or for assisting in the quick recovery from particular diseases. In order to navigate the political, economic, social, technological, and legal hurdles that may affect the company’s performance, ABC needs to develop a roadmap, noting the areas that could pose a serious challenge to the business. When ABC takes all that into consideration, there is no doubt that it will be the soft drinks company of choice to many consumers.
Armstrong, G. & Kotler, P. (2015). The Principle of Marketing. Pearson Education: New Jersey.
Blaise, S. (2012). Business Analysis: Best Practices for Success. John Wiley & Sons, Inc.: New Jersey.
Find the Audience you want. (2015). Retrieved July 13, 2015, from http://www.google.com/analytics/why/
Kumar, S. A., Poornima, S.C., Abraham, K.M., & Jayashree, K. (2003). Entrepreneurship Development. New Age International Ltd: New Delhi.
Ryan, D. & Jones, C. (2012). Understanding the Digital Marketing: Marketing Strategies. Koran Page Limited: Philadelphia.