Essay about Natureview Farm Case Write Up

1702 Words Oct 14th, 2013 7 Pages
1) How has Natureview succeeded in the natural foods channel? What are the two primary types of growth strategies under consideration by Natureview?
Product attributes: Natureview, in the following referred to as NV, benefits from the strong attributes the customer connects with the product. Through the special process and ingredients the products can achieve shelf life of 50 days, which is significantly higher than the average 30day shelf life in the industry. In order compete with NV on this dimension competitors have to build multiple production plants in order to reduce shipping time. The offering of 12 different flavors covers a variety of customer taste and can therefore be considered as a substitute to the non-natural yogurts
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The high predicted growth rates might be not fully captured due to long-term capacity constraints, which are not considered in the calculation.
Cannibalization: Choudhury and Karahanna are suggesting a four purchase stages model, which includes the process of vendor selection. An important element of this process is to identify costs
(e.g. price or transportation costs) and benefits (e.g. convenient shopping).10 As the price is significantly lower in the supermarket channel, a cannibalization effect will occur. This should be taken into consideration when selecting the desired Option.
3) If the venture capitalists extended their deadline for meeting the $20 million revenue target by 12 to 18 months, would that change your recommended action plan?
As we can see in our cannibalization calculation Option 1 is superior to Option 2 in

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