Problem Identification of a Company - Assignment Example

The distribution medium of the soft candy company is different from the acquiring company.
After weighing out the advantages and disadvantages associated with the four alternatives, the acquiring company has focused on progressing ahead with the alternative associated with merging some functionality.
Analysis of the solution
By opting for the alternative related to merging some functionality, the acquiring company will have a series of unique advantages. Explaining more elaborately, it can be said that the acquisition of the soft candy company by the client has already increased as well as diversified their product portfolio. The diverse product portfolio will help the company to market its product to a larger group of the target audience, who has a liking for either or both hard and soft candy kinds of products. To gain the maximum amount of mileage regarding the expansion of the product portfolio, the client company should focus on implementing a series of strategies.
The first strategy is to create demand for the company’s expanded product portfolio through strong advertising. The advertising campaign should focus largely on raising awareness for the new soft candy products as well as developing an overall brand for the company.
The second strategy is to separately identify and forecast the demand for hard and soft candy products in the various pockets of the domestic market and then send the estimated amount of products to fulfill the variable demand and thereby eliminate the option of either stock out or accumulation of inventory. This method of identifying and forecasting product demand in the various pockets of the domestic market will help in increasing the efficiency of the distribution channels as well as the movement of logistics.
The third strategy will focus largely on international lines. Because of the ability to produce both hard and soft candy products, the company should try to enter new markets where there is a high demand for sweet delicacies. Explaining the reason why an international market expansion is being recommended to the company it can be said that the diversified and expanded product portfolio of the client which comprises both hard and soft candy will make it relatively easy for the client to target and attain success in the new market. However, it is strongly suggested to the client company that while entering a new market, they should focus on understanding the attractiveness of the market by studying the factors related to purchasing power, demographic factors, lifestyle trends, and even growth prospects of the economy of the new market. Read More