Olive Oil and New Entrants

Topics: Olive oil, Italian cuisine, Trade Pages: 2 (334 words) Published: February 18, 2014
Note: other alternative = trying to get their cosmetics in to retailers such as body shops etc.

Ansoff : Olive Oil
Oil in to new markets. Same Product New market. = Market Development.

Ansoff: Cosmetics
Market Development
Also
Market Penetration in the markets it is in.

Porter 5 Forces: Olive Oil

1) Direct Rivalry = High
2) Bargaining Power of Suppliers = Medium to High
3) Bargaining power of Buyers = Medium (brand loyalty in industry) 4) Threat of Substitutes = Medium to Low
5) New Entrants: Medium to high. Markets growing so much = opportunities for new entrants. No regulations etc. preventing new entrants.

5 Forces:

1) Direct Rivalry = In Italy = Medium. In US = High – rapid growth – established firms 2) Bargaining Power of Suppliers = Medium to High
3) Bargaining power of Buyers = High
4) Threat of Substitutes = High
5) New Entrants: Medium. Market taking off quickly but high costs involved in setting up.

Alternatives:

1) Expand cosmetic distribution. Enter international markets (but not US). Use beauty magazine to try and differentiate selves from competition and gain loyal customers. Use direct distribution here to differentiate from competition and gain loyal customers. Then possibly look to adapt dist. strategy 2) ‘’ ‘’ ‘’ ‘’ use retailers for dist in international markets. Try and get in to the fast growing retailers such as The Body Shop - alliances with the emerging market leaders like this could be vital for brand. 3)

4) Improve online ads and sales rate here – should be higher 5) Improve extra virgin olive oil position in Italian mkt.
6) Continue to penetrate Italian market with olive oil. 35% of customers = 70% of sales. Increase by further 5% = big boost for revenue 7) Change distribution strat. Sell in supermarkets etc. Both in Italy in internationally. 8) Stay direct in Italy. Go with retailers in International Market. 9) Hault business with cafes.

10) Review shipping policy.
11)...
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