Strengths
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SWOT ANALYSIS |
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Strengths 1. Brand equity is high Lobster’s Lopdrup is well-known and well-recognized by current consumers as well as prospective new ones. Lobster’s Lopdrup has been able to acquire new consumers and create lucrative relationships with both new and loyal customers because of its strong brand equity. 2. Capacity to drive change in the realm of sales and marketing Lobster’s Lopdrup is a well-known brand in its field. Over the years, it has had a significant impact not just on the industry as a whole, but also on the business environment in its own niche. Lopdrup has been able to take use of its capacity to drive change in order to expand into new areas, reach new consumers, and offer a variety of value propositions to those clients throughout the world. 3. Margin stability in comparison to competitors in the Sales & Marketing sector In the market, Red Lobster’s products are distinctly distinct from those of its competitors. In the Sales & Marketing business, this has allowed Lobster’s Lopdrup to command a little premium over its competitors’ products. Lobster’s Lopdrup has been able to increase its R&D and innovation spending because of the company’s stable profit margins. |
Weaknesses 1. Costly operations Red Lobster’s operational costs are higher than those of its competitors in the HBR case study. Given the new, growing competition from agile competitors that use technology to acquire Lobster’s valuable consumers, this may be more difficult to continue in the long term. 2. Slow in utilizing new modes of communication Even though Lobster’s Lopdrup rivals are adopting new communication channels such as Instagram, Tiktok, and Snap, Lobster’s Lopdrup is sluggish to explore the new channels of communication. Case study Red Lobster discusses new avenues of communication in its marketing department, which might aid in disseminating better information about its products and services. Another benefit is that it may help grow an online community of consumers. 3. Lobster’s Lopdrup goods don’t have a distinct identity. Lobster’s Lopdrup must provide a wider range of items that stand out from the competition if it is to improve its profitability and margins on its present line of products. |
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Opportunities 1. Collaboration and teamwork models Redefining As mentioned in the shortcomings section, due to the dominance of functional specialists. The Red Lobster case study demonstrates that a company may use modern technology to develop better coordinated teams and improve operations and communications utilizing applications like as CAD, Zoom, etc. 2. Manufacturing Automation Sales & Marketing can benefit from the most recent technological advancements in industrial automation, such as Lobster’s Lopdrup’s utilization of robotics. Prototypes and pilot tests may be built using CAD software, and 3D printing. It may take use of automation employing machine learning and artificial intelligence, as well as satellite and tracking technology, to produce faster and more cost-effectively. |
Threats 1. Dependency on third-party suppliers Company operations and distribution methods may be negatively affected by this. Due to the fact that many chip makers have started producing chips for electrical businesses rather than automotive manufacturers, vehicle producers are presently suffering chip shortages. 2. lengthier learning curve There may be a lengthier learning curve for existing staff at Lobster’s Lopdrup as the technology based on artificial intelligence and machine learning platform becomes more complicated, as demonstrated in the case study Red Lobster As a result, sales and marketing firms with greater agility may gain an advantage. |
- Worst 2 – below average 3- good average 4- Very Good 5- Best
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Competitive Analysis |
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Most Important Attributes in Category |
Company A |
Competitor 1 |
Competitor 2 |
Evidence |
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1. Marketing |
3 |
4 |
5 |
Lobster’s Lopdrup need to do more on marketing. The company’s sales and marketing teams need to collaborate more |
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2. Quality |
5 |
5 |
4 |
Based on the Case study Lobster’s Lopdrup has the best quality of both the products and the customer services offered |
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3. Price |
4 |
5 |
4 |
Prices depend on the products being sold by the competitors. |
When Red Lobster first opened its doors, it advertised itself as a location where customers could obtain reasonably priced fish in a relaxed, welcoming eating atmosphere. This resulted in an emphasis on advertising prices and offering huge discounts to attract customers into eateries. Customers began to doubt the quality of Red Lobster’s seafood as a result of the company’s budget-conscious approach, perceiving the restaurant as a low-end, outmoded establishment that served mass-produced, frozen seafood and had a large number of fried dishes on the menu. The combination of this reputation and the fact that its pricing point was on the higher end of the casual dining spectrum caused customer satisfaction to plateau.
Following the repositioning, Red Lobster is now focused on serving fresh, high-quality seafood in an environment that is suitable for a variety of situations. The latest advertisements, such as those in exhibit 9, which feature fresh seafood and wood-fire cooking, provide support to this new perspective. This year’s advertising reflect Red Lobster’s new positioning while maintaining faithful to the company’s original objective of providing “approachable” fish to its customers.
Price
Red lobster’s average check is $19.50, which is at least $4 more than most of its competitors in the casual dining category. In other words, even though experientials are less price sensitive, red lobster must be careful not to overcharge them. Price-sensitive clients should not be priced out of the casual dining category. Because experientials are more likely to purchase appetizers and desserts, these products might be more expensive or involve more quality (and expensive) goods. Red lobster shouldn’t raise pricing.
Product
Red lobster should keep promoting freshness and quality. They may also offer new, shorter-term menu items to meet this approach. These new seafood or shellfish products may pique the experientials’ curiosity about new foods and menu options. It is possible to introduce more quality and high-priced wines to suit to the experientials’ tendency of drinking wine with supper. Adding additional expensive wines would also be beneficial because red lobster has larger wine margins and experientials are less price sensitive.
Place
The organization should identify the most experientially oriented sections and prioritize upgrades there. Aim to remodel all sites eventually.
Promotion
Red lobster should still promote cheap, but it should be discreet, with the main focus on freshness and quality. It should also convey the idea that red lobster is a venue for sharing experiences and forming relationships.
Conduct an Industry Analysis using Porter’s 5 Forces of the Casual Dining Industry in 2010
5 Forces Industry Analysis
Red Lobster’s strategic posture at the time will not provide them a lasting competitive advantage due to new rivals. Customer relationship management may help Red Lobster establish brand loyalty. It will make the transition more complicated. Long-term distribution agreements can help it reach a bigger audience. Red Lobster may also engage in R&D, collect valuable consumer data, and develop new products and services.
Second, lessen the danger of substitute products or services by stressing how great Red Lobster’s product or service is. The better service and great value should convince them to buy. Promoting client loyalty helps reduce switching costs. Customers will be less inclined to switch products if the new technology improves the product’s quality, value, and distinction.
Red Lobster should pay attention to what its customers don’t specifically desire or expect. It attempts to raise the standard for rivals by building long-term relationships with clients. The organization should do research and development to locate new clientele. In certain cases, collaborating with competitors makes sense. The company can also look into it.
Finally, Red Lobster may enhance its market position by minimizing its reliance on a few key suppliers. As a result, it will be more price sensitive. Long-term contractual relationships with diverse suppliers help Red Lobster improve supply chain efficiency while weakening negotiation power. A last option is for Red Lobster to develop a new method of production if there is sufficient demand and the firm has the necessary skills and experience. A detailed cost-benefit analysis is necessary to determine feasibility. Product redesign and line diversification can also help reduce supplier market power.
Weaknesses
Yes, Lopdrup’s target segments should be experiential. The main reason for this is whn considering the present state of Red Lobster, with diminishing earnings over the last three years, is a crucial signal that they need to target that customer category (i.e. experiential).
To that end, Red Lobster’s marketing mix should be adjusted properly, which involves emphasizing the concerns raised by Copernicus’s experience survey.
- Promotion: Emphasize freshness and culinary competence, which should be reflected in their current advertisements. Their customary price promotion should also be considered.
- Pricing: Minor pricing changes have little impact on the experiential part of the client.
- Product: Increasing diversity in wine, i.e. supplying a diverse range of high-quality wines and developing newer types of sea food dishes, is popular with the experiential segment of the client.
- Place: Remodeling those locations that have higher experience segment sales than others should be prioritized. Placement of new eateries in more tranquil and less bustling areas.
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Experiential |
Indulgent |
Frugal |
Totals |
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2000 |
-1000 |
-1000 |
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Avg. Annual meals out |
6.3 |
5.6 |
3.8 |
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Alcohol Consumption |
12% |
4% |
1% |
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Avg. Spend on meals |
$ 24.88 |
$ 18.78 |
$ 14.86 |
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Revenue/meal |
$ 49,760.00 |
$ (18,780.00) |
$(14,860.00) |
$ 16,120.00 |
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Revenue/meal * Annual Meals |
$ 313,488.00 |
$(105,168.00) |
$(56,468.00) |
$ 151,852.00 |
This scenario would result in an increase in annual sales of $151,852 at the shop level. Because Experientials eat more alcohol, which has a profit margin of 81 percent, this statistic doesn’t take into account the reality that more of that money is profited from. Experientials, on the other hand, although being more profitable, are more service-sensitive. As a result, it’s possible that Red Lobster may have to pay more to keep up its high level of customer service.
Blockchain is a decentralized, innovative, and distributed “state-of-the-art” technology that ensures the safety of all transactions and data. Data and transactions can be stored in a peer-to-peer networked ledger that is open and peer-to-peer (Choi, 2019). Decentralized digital ledgers are known as blockchains. It is impossible to alter records after they have been uploaded without the consent of all/most key stakeholders, making corporate processes extremely safe and trustworthy. As a financial crime tracker or a way to securely exchange medical information, smart contracts can be employed. It is possible to reach broad consensus on the contents of the blockchain because of the immutability of the public ledger it contains. 1 A wide range of companies, including finance and renewable energy sources, have been affected by its decentralized structure, verifiability, and inflexibility. A successful SC blockchain conversion isn’t without its hurdles in terms of usability and security, as well as pricing. Security and ease of use have been improved for these new industrial Internet-of-things (IoT) technologies and other Industry 4.0-related technologies (Dutta et al., 2020). Concerns about data privacy and security exist in every business. Blockchain designs can be classified as public (non-permissioned), private (permissioned), or consortium (hybrid). Because it is a peer-to-peer network, anybody may join a public blockchain. The utilization of cloud networks allows for flexible and role-based data access. Here, we’re referring to information obtained via social media (Choi, 2019). Combining the advantages of public and private blockchains, the Consortium Blockchain
Security and transparency of SCs are ensured by the blockchain architecture. This is a well-known blockchain system method. A 256-bit hash number is created using a scientific technique for each block on the blockchain. A block’s hash serves as a connection between them in a safe and self-contained chain. Zheng et al. Before a block can be added to the blockchain, it must be confirmed. This may be done by “blockchain mining.” Verified transactions are uploaded to a distributed ledger known as the blockchain, which is unchangeable. As a bonus, it has a built-in defense system.
Intelligent computers that can do tasks ordinarily performed by humans are known as “artificial intelligence” (AI) in the field of computer science. The food processing and handling business employs more people throughout the world than any other manufacturing sector. Human labor plays a significant role in the production and packaging of food products. Human involvement in the food sector has resulted in a lack of food safety and supply chain management. The food industry’s challenges can be solved via industrial automation. Automation makes use of artificial intelligence (AI), machine learning (ML), and deep learning (DL) (Kollia, Stevenson and Kollias, 2021). Artificial Intelligence (AI) may be used to improve food production and distribution processes, as well as operational efficiency. Human error may be reduced, money saved, and resource efficiency improved with artificial intelligence (AI) solutions in the food industry. AI and data science may be used to boost production in the restaurant, café, online delivery food chains, hotels, and food outlets by using different fitting algorithms for sales projection. Food safety may be improved by implementing AI algorithms in the supply chain management system, which can also help extend the shelf life of products. With the use of artificial intelligence (AI) and machine learning, the food industry’s future lies in robotic farming, drones, and smart farming.
References
Choi, T.M., 2019. Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains. Transportation Research Part E: Logistics and Transportation Review, 128, pp.17-29.
Dutta, P., Choi, T.M., Somani, S. and Butala, R., 2020. Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation research part e: Logistics and transportation review, 142, p.102067.
Kollia, I., Stevenson, J. and Kollias, S., 2021. AI-Enabled Efficient and Safe Food Supply Chain. Electronics, 10(11), p.1223.
Smyth, C., Dennehy, D. and Fosso-Wamba, S., 2021, September. A Review of AI in the Supply Chain Industry: Preliminary Findings. In Conference on e-Business, e-Services and e-Society (pp. 454-466). Springer, Cham.
Zheng, Z., Xie, S., Dai, H., Chen, X. and Wang, H., 2017, June. An overview of blockchain technology: Architecture, consensus, and future trends. In 2017 IEEE international congress on big data (BigData congress) (pp. 557-564). Ieee.
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