TABLE OF CONTENTS
Executive Summary 2
Short Term Issues 4
Porter’s Value Chain/Operations Strategy 5
Long-term Strategic Direction 7
Fresh Connections is a fresh food manufacturer that provides meal solutions products to retailers, restaurants and co-pack companies. After a successful stint of one year, Fresh Connections is suffering from variety of short term, operational and strategic issues. In the immediate future, cash liquidity of the company is a problem and it is recommended that take the deal with the co-op client to alleviate their financial situation. Moreover, they are in the ...view middle of the document...
Quality plays an important role in this industry too. People who appreciate a product will provide a repeat business.
- Competition from Localised Industry - Many localised industry catering to different culture also creates huge competition. Each of them provides products with their own quality. They also do not provide the same kind of products. The industry is filled with firms that provide just soups, sauces or salads, or the firms that provide only entrees or side dishes or firms that are involved in the production of main dish or just desserts. These firms can have the same buyers but their product is different. . So, the industry has a large number of firms that increases rivalry because more firms are competing for the same customers.
- Geographical Rivalry: The geographic scope of competitive rivalry is mainly because of the difficulties and high cost of transporting fresh products. Manufacturers have to sell food as soon as possible because of the highly perishable nature of the products. So buyers prefer to source their products from regional firms rather than from the far away located firms.
2. Bargaining Power of Buyers: In this case buyers or the customers of fresh connections have a higher bargaining power. The two prominent buyers of fresh connections are:
- Retailers: Retailers are an important buyer of fresh products. Also they operate on very thin margins. If they get a better price from some other player in fresh food industry, they can easily switch to another competitive product in the industry.
- Restaurants: Another major buyer of fresh food industry is restaurants. For them quality of the products plays an important role. So if they are not satisfied with the quality of products being delivered to them, they can also switch to other players in the industry. Also to capture a new restaurant business, fresh connections would have to invest again in the development cost of new recipes.
SWOT ANALYSIS WITH MANAGERIAL IMPLICATIONS Strengths
- Knowledge-based Recipe Database
- Diverse, High Quality, Customizable Products
- Flexible, agile & responsive to customer needs
- Compliance USDA Regulations
- Understand the needs of Client’s Clients Weaknesses
- Lack of Financial Resources
- Bottlenecked Capacity While Costly to Expand
- No Clear Long-Term Strategy
- Highly Dependent on Retail Type Clients (Clients also loosely contracted)
- Limited Distribution Capability
- Operational Issues
- Obsolete Information System
- Food Service Channel Projected to Grow
- Restaurant Segment Offer Great Profit Margin (Highest Projected Growth Segment) - Fresh Connections can potentially leverages their resources, capabilities and core competencies to effectively serve the needs to the commercial food service (restaurants) segment - Financial, capacity, distribution, operational, technological and growth constraints can potentially hinder Fresh Connection’s future viability as a...