Monday, October 7, 2019

What is the Strategy of Annandale Assignment Example | Topics and Well Written Essays - 750 words - 8

What is the Strategy of Annandale - Assignment Example The reason that I arrived at the conclusion that Annandale Water Ltd is using an exclusivity strategy is because its products are not available for sales at supermarkets or convenient stores. The company has control of the distribution of the product which ensures the product is sold at the locations the firm desires. The business model the company utilizes is to sell its water products to exclusive location and to provide a full service to its customers. The company delivers the water to its major customers. The main markets of the company are weddings, two exclusive catering companies in London, direct sales from the bottling plant, direct sales to five exclusive hotels located in Edinburgh, and long-term contracts with Harrods and Fortnum and Mason in London. The company has a fleet of ten 40 ton articulated trucks; 15 smaller delivery vans, and 17 cars for the speedy and responsive deliveries. The transportation department has 15 full-time employees. The model the company used has lost value due to the fact that it has become extremely expensive to deliver the goods directly through its own trucking and vehicle fleet. The strength section of the SWOT mentioned a lot of the positive aspects of the business. The strength section failed to mention that the company has a superb executive management team. Companies with great leaders have a better chance to succeed than the firm that lacks human capital. The branding value of the product is its greatest strength. The company can capitalize on its brand by expanding the number of places that distributes the water products of the company. One of the main weaknesses identified in the SWOT analysis is the transportation costs. Gasoline is one of the main cost drivers of transportation costs. An issue with gasoline prices is that they are very volatile.

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