Healthy Potion Case Study

Improved Essays
Introduction
The following is a case study of Healthy Potion which is an Australian beverage company and relies on imported herbal from China as material. This paper will analysis strategy by SWOT and Michael Porter’s model. And it will also compare which strategy is better for new business development. Moreover, evaluation of debt and equity financing and plan for raising funding will be discussed at the end of this paper.
Strategy analysis
This section represents a brief strategy analysis of Healthy Potion by using SWOT and Michael Porter’s ‘Five Forces’ model analysis. Strategy analysis have serious beneficial for business outperforming than competitors for the long run. (JI K 2015a). ‘SWOT’ is the abbreviations of four words’ initials which
…show more content…
Pressure from big beverage industry such as coca cola could be one of the most important threats for Healthy Potion. Coca Cola Company has the best global brand in the world, which has world’s largest market share in beverage and still promote sales by set personalize marking device and sale share to increasing investment. (Collier Karen A 2014).
While, SWOT is not completed, therefor, another measurement about strategy is Michael Porter’s ‘Five Forces’ model which include power of suppliers, threats of new entrants, power of consumers, threats of substitutes and competitive rivalry. (Yang L 2015). Katherine Arline who is Business News Daily Contributor found that SWOT analysis is not a perfect tools to investigate strategy, while the five forces model may improve it. This model looks at five specific factors that help determine whether or not Healthy Potion can make profit, based on other businesses in the industry .(Arline K
…show more content…
Firstly, by achieving further productivity and operational efficiency in the future Healthy Potion could purchase herbal seeds which import from china and cultivating in Australian and also patent it. (JI K 2015a). Furthermore, between same level’s competitors Healthy Potion has a core character which is the special taste extracts from herbal and contributes superiority of Healthy Potion. For example, coca cola invented the new taste of drink which combines sweet and carbonated water. Because of the distinctive belong to the fortune 500 companies. (Pendergrast M 2000). Admittedly, cultivating herbal by themselves and apply patent is not always an effective strategy to avoid risks because of purchasing fees and higher costs of human resources management. Due to cultivating process, Healthy Potion has to employ more workers to ensure the normal operation, which also could imply high costs. Therefore, those who oppose this strategy might agree that purchasing and patenting are not necessary. For example, Red Bull is an example that contents are not patented, and all the ingredients are listed on the body of the slim silver can but still control respectable market shares worldwide. (Power S 2004). However, high human resources costs and purchasing fees are in short run, while, that is in the long run increasing revenue could cover these cost. (Wait A 2015). In addition, as red bull company, there are some strategies behind

Related Documents

  • Decent Essays

    Coca-Cola is the most popular and biggest-selling soft drink in history, as well as one of the most recognizable brands in the world” (The Coca-Cola Company, 2016). Thus, the Coca-Cola Company is one of the largest soft drink industry in today’s global market. This essay will discuss the marketing mix of the Coca Cola Company, as well as explain each of the four P's of marketing and include examples of each: price, place, promotion, and product. Also, it will give suggestions for future plans, and recommend areas of marketing that the company could pursue in the future. The marketing mix is defined as the “four Ps—product, price, place (channels of distri- bution), and promotion—are adjusted so that the customer will buy the product and use…

    • 892 Words
    • 4 Pages
    Decent Essays
  • Superior Essays

    Understanding the uncontrollable elements gives Coca – Cola an overview of the market to adjust the method of investment, which contributed to a rapid growth in market share and a high degree of market penetration in an emerging market as China. In conclusion, the successful of the Coca – Cola company in China market is constituted of some secrets as follows:  Firstly, Coca – Cola gained benefits from its reputation brand. They built a strong trademark in some countries before entering the Chinese market.  Secondly, by having Joint Venture with Chinese partners, Coca – Cola created an efficiency and effectively distribution network, associated with franchise stores from foreign partners to boost product’s…

    • 1178 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    Also, Pepsico was able to better understand their customer needs than competition such as Red Bull where customers may not want to consume an energy drink before noon (Bouckley, 2015). Since Pepsico was able to recognize that its core competencies gave it an advantage over its competition, Mountain Dew Kickstart is one of Pepsico’s most successful start-up launches in the past decade (Hall,…

    • 882 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    In terms of the strengths, healthy portion business has achieved product differentiation, since it sells an exclusive beverage, requiring plant extracts from north-western China. The raw materials are unique and the production technology is confidential that cultivated the core competence (Needle 2010 cited in Ji 2015, p. 6). Moreover, compared to soft drinks that are popular in the market, plant concentrate tends to be healthier. Additionally, the business has operated for a few years and become profitable. It has built a customer base, for the reason that the demand of healthy portion increases in the warmer seasons, and remain stable in the colder seasons.…

    • 1105 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Coke Vs Pepsi

    • 973 Words
    • 4 Pages

    For example, the target market for Pepsi is usually younger generation, yet Coke is pretty much everyone. KO has shown greater flexibility and innovativeness than PEP, they adapted their drink to the various markets around the world and thereby achieved to satisfy the different tastes of the consumers (Thomas). Without a doubt, Coca-Cola become very well known all over the world, and Coke has definitely achieved a high level of loyalty. There is actually a rumor that says the second most recognized expression in the world after “ok” is “Coca-Cola.” In conclusion, brand loyalty is important especially for companies like KO and PEP. They are perfect substitute for each other.…

    • 973 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The taste, the emotional brandings, and their marketing techniques are some of the reasons why Coke remains supreme in the soft drink market. The taste, the emotional brandings, and their marketing techniques keeps everyone guessing what Coke will do next. Pepsi and Coca Cola have long been rivals in the marketing industry making them the two most recognizable names in soft drink…

    • 749 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    their most impressionable age. The industry is therefore not likely to grow as long as the existing stigma around their negative side-effects exists. Frucor’s main rival company, Coca-Cola Amatil, has responded to these health concerns by releasing “Coca-Cola Life” which uses stevia; a plant based and apparently “healthier” alternative to sugar. The launch of the drink was followed with a barrage of good press, which claim “the beverage contains 17 grams of sugar per 250 millilitre can, which is 18 per cent of a person 's recommended daily sugar intake, while regular Coca-Cola contains 29 per cent of a person 's recommended daily intake” (Van Benyen, 2015). Innovative steps such as these need to be adopted by the Mountain Dew brand in order to stay marketable in an industry with a changing standard and an evolving consumer.…

    • 1525 Words
    • 7 Pages
    Great Essays
  • Superior Essays

    With the high availably it does not give the consumer a good barging stance on the price of soft drinks. The only real option that the consumer has in regards to bargaining power is the option to buy the generic brands like Kroger and Lucerne. Even though the option to buy the generic options are available to the consumer, the loyalty that each of the major brands is so strong and inexpensive, that it would require a significant economic drop for the consumer to switch to the lesser brands or cause the companies to cut…

    • 1154 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    This has caused the company to be unable to use their biggest strength; and ultra-efficient and technologically advanced supply chain (Salomon, 2016). Description of Walmart’s Sourcing and Logistics Strategies for Operations in China Wal-Mart 's low pricing strategy was not as well received as the company believed it would be in China. The Trefis Team (2012) argues that Chinese buyers are more concerned about the authenticity and quality of products over price. The Wal-Mart "Every Day Low Prices" has been deemed as cheap and unsafe in China. Walmart is looking to improve store productivity to improve logistic strategies in China.…

    • 1037 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    By using the SWOT analysis, Coca cola has developed many succeeded marketing strategies overtime. The company not only clearly acknowledges their Strengths are Brands equity, Economic of scale and the Coca cola system but they also willing to apply those competitive advances in a rational level. Being recognized as one of world’s leading brands by Interbrand, Coca cola with its vast global presence and unique brand identity is definitely one of the costliest brands. Moreover, the corporation is the largest manufacturer and marketer of non-alcoholic beverages in the world. The statistic has shown how large the company economic of scale is when approximately 40% of the global non-alcoholic beverages industry is controlled by Coca-Cola.…

    • 740 Words
    • 3 Pages
    Improved Essays