Competitive advantages of Danone company
Danone’s success mainly came from its competitive advantage of being able to adjust rapidly. Danone used a decentralized strategy to neutralize the dynamic market demand around the globe. Danone decentralized by assigning managing directors in each state, giving them power and obligation. For example, Danone took only 3-4 months to launch a new product, while its competitors took 12-18 months to launch theirs. Decentralization strategy can increase motivation for managers and they will react rapidly when facing changing situation. In addition, they will be trained to be a good leader. Even so, due to the unclear point of communication and different language, decentralized operation often creates confusion …show more content…
First, advanced as a patriotic brand and a symbol of happiness and luck because of traditional rural families will feel that is really important to them. From here, it shows that Wahaha emphasis specifically on analysis market needs. This action also considered as a competitive advantage. Secondly, they had analyzed that Pepsi and Coca-cola were not still well established in rural countries. Hence, they introduce the little group of target market, which is lower income group. They are willing to consider risks to emerge new market, then this action also become their competitive advantage. Thirdly, Wahaha allows a high net income margin for sellers, who will then be very willing to promote the Future Cola plus strong advertisement made more consumers access and know their new product. These strategies can become its competitive advantage as …show more content…
Supply and demand Danone still imbalance because of unionized suppliers. For Wahaha, their lack of presence in urban market and limited cold variety.
Opportunities of Danone and Wahaha company
Danone can take opportunity to rising incomes in fast-growth categories and consolidate retail space. Danone has the potential to reach a sales point to 13% without chills sales. On the other side, Wahaha also has good opportunity because of large Chinese population. Their Future Cola is designed Chinese taste flavors, so their income also can rise up. Government pushes for domestic consumption and encourage to venture overseas. With government support, Wahaha will ease to enter the market.
Threats of Danone and Wahaha company
Danone facing threats that milk price is increasing and shortage of quality milk due to small volume per supplier. Their consumer unwilling to abandon traditional taste. Wahaha also facing threats that high competitive intensity and presence of big foreign companies.
In conclusion, Danone and Wahaha have their own competitive advantage, so I feel that both of them have potential to expand more
Danone’s success mainly came from its competitive advantage of being able to adjust rapidly. Danone used a decentralized strategy to neutralize the dynamic market demand around the globe. Danone decentralized by assigning managing directors in each state, giving them power and obligation. For example, Danone took only 3-4 months to launch a new product, while its competitors took 12-18 months to launch theirs. Decentralization strategy can increase motivation for managers and they will react rapidly when facing changing situation. In addition, they will be trained to be a good leader. Even so, due to the unclear point of communication and different language, decentralized operation often creates confusion …show more content…
First, advanced as a patriotic brand and a symbol of happiness and luck because of traditional rural families will feel that is really important to them. From here, it shows that Wahaha emphasis specifically on analysis market needs. This action also considered as a competitive advantage. Secondly, they had analyzed that Pepsi and Coca-cola were not still well established in rural countries. Hence, they introduce the little group of target market, which is lower income group. They are willing to consider risks to emerge new market, then this action also become their competitive advantage. Thirdly, Wahaha allows a high net income margin for sellers, who will then be very willing to promote the Future Cola plus strong advertisement made more consumers access and know their new product. These strategies can become its competitive advantage as …show more content…
Supply and demand Danone still imbalance because of unionized suppliers. For Wahaha, their lack of presence in urban market and limited cold variety.
Opportunities of Danone and Wahaha company
Danone can take opportunity to rising incomes in fast-growth categories and consolidate retail space. Danone has the potential to reach a sales point to 13% without chills sales. On the other side, Wahaha also has good opportunity because of large Chinese population. Their Future Cola is designed Chinese taste flavors, so their income also can rise up. Government pushes for domestic consumption and encourage to venture overseas. With government support, Wahaha will ease to enter the market.
Threats of Danone and Wahaha company
Danone facing threats that milk price is increasing and shortage of quality milk due to small volume per supplier. Their consumer unwilling to abandon traditional taste. Wahaha also facing threats that high competitive intensity and presence of big foreign companies.
In conclusion, Danone and Wahaha have their own competitive advantage, so I feel that both of them have potential to expand more