Relajante Case

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Overview
The following report is a strategic analysis that addresses the key issues of and provides operational, financial, and marketing recommendations for the company Relajante Ltd. The company is facing a slow in sales and revenue gain in spite of a recent expansion due to conflicts within the business model relating to the operational processes, cost structure, and marketing strategies.

To address these key issues and assist Relajante in attaining its goal of becoming more profitable, the report offers alternative solutions and highlights three key recommendations that will be instrumental in the company’s success. The recommendations link together to create the alternative solution of developing a new line of products, creating new revenue
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Moreover, it prevents the company from investing its resources into other operational facets such as the the factory or new equipment.

In terms of marketing issues, Relajante is lacking a clear marketing strategy to connect to its customers and brand awareness and certain locations. As well, the company is attempting to sustain its current competitive advantage of a simple, reliable paddle and faces incoming competition soon. Finally, the key issues regarding the company’s financial issues revolves around its value-driven cost structure largely consisting of direct materials (~51%) and its non-alignment with the price of paddles.

Key Recommendations
The following recommendations attempt to fully address the key issues holistically, as they weave together to form the suggested alternative solution. To undertake the key issues, respectively, Relajante is recommended
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Specifically, a local supplier for a myriad of key reasons. The first being that since the supplier is nearby, you have a greater control and supervision of the quality of supplies you are receiving and will be able to communicate with the supplier easily should any issues occur. Moreover, also connecting to marketing, working with a local supplier provides the opportunity to broaden the brand awareness within the community – the supplier may lead to new potential partnerships with a relevant business, such as another water activity equipment

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