Ala Gracia Case Study

1. The philosophy at Alta Gracia can lower costs in the long run. They target their brand to colleges due to the fact that they are all about fair labor and there are many organizations within colleges that support this. Also colleges often have disputes with other companies such as Reebok and Nike. If Alta Gracia continues to thrive their popularity will increase and they will sell more of their items. If they get popular enough in the long run more individuals will support and buy theirs products and the demand will become higher. If the demand increases then they will be able to increase their prices and lower their cost in the long run.
2. I do not believe Joseph Bozich would be able to attempt the Alta Gracia Experiment if they were a publicly traded enterprise. Mainly because Joseph had his own personal reasons for wanting to do this experiment. If the company were publicly traded I do not believe the majority of the holders would share Josephs views and I strongly believe that they would not want to increase the costs of making their products.
I think that there are a few items that can stand in the way of the succession of Alta Gracia. One being the high costs, if they do not maintain their popularity amongst colleges the company could potentially suffer. Which leads me to the next impediment, which is competition. If there another company is established which has the same values but somehow manages to have lower prices then Alta Gracia could suffer losses. I think the best thing Alta Gracia can do to minimize risk of failure is to keep satisfying their customers by keeping them informed of how they treat their workers. This idea is the main driving force of this brand and the main reason why so many college students chose to buy their product. Then could also increase their advertising or attempt to find an additional focus group other than colleges as their main means of