Analysis Of Slices And Strategies For Competitive Advantage

PESTEL and Five Forces Analysis of Slices

Discuss about the Motivations And Benefits Of Halal Food Safety.

Coming up from the introduction of assignment first it was noted that the company Slices is not that famous in the country worldwide. The company is involved in the business of serving home grown food and beverages. The part one of the assignment provided a detailed information about the position and the activities of the company in the market of Abu Dhabi. The PESTEL analysis describes the favorable and unfavorable conditions present in the environment that reflects the activities of Slices in both positive and negative ways (Jabeen, Zamber, and Khan 2015). The political factors of the country act as a risk for the organization, as there is presence of instability in the governmental norms and regulation. This can hamper the growth of the company in long term. Further the economic factors of the country says that the country is rich in terms of GDP, there is high purchasing power in the hands of the customers that can provide advantage to the sales of the company (Ribeiro, et. al., 2017). Further, the people of Abu Dhabi have a rich heritage, also these people like to live a luxurious life as they have plenty cash in hand as well. The country has advanced technology that acts as barriers as well as resource for the organization. Thus, the company needs to remain in competence by using this technology. Lastly, the legal and environmental laws state that the activities of the business should not affect the government or nature under any case (Slices 2015).

Further, the five forces analysis explains the attributes of the industry in which the company Slices is prevailing. There is high degree of competition in the industry as many restaurant chains with appropriate supply chain are present in the industry. The suppliers of the industry have low power in hand as few companies’ uses organic products as raw material (Vargas, Calva, and Camacho 2015). There is high degree of power in the hands of buyers of the industry as all companies offer products to the customer according to their demand, preferences and expectations. Further, it should be noted that there are many companies present in the industry that provide similar services or substitution of products that increase the threat of substitution for the Slices. Lastly, the threat of new entry in this industry is high as it is easy for the companies to enter in the industry and easy exit ways as well (Laeequddin, and Abdul Waheed 2016).

Core Competencies of Slices

Further the core competencies of the company explain different aspects with the help of which the organization can sustain their growth in the external market. The core competencies have four parts namely fill in the blanks, white space, premier plus ten and mega opportunities. The company has adequate resources with the help of which they can easily make optimum profit in the market, further company has the competency to recognize the profits and deliver in their products and services so that the customers can gain greater level of satisfaction. The company uses the organic products to provide healthy and tasty food to the students (Del Prado, and Rosellon 2017). Under the premier plus ten stage, the company can expand their resources and increase the cultivation of safe and healthy products under their surveillance. Lastly, mega opportunities explain that the company has high potential to expand their customer based to international customers by initiating activities in the international market (Manalili 2017).

So, from the above analysis done in part one of the assignment, it can be said that currently, the company is involved in the local market but it has wide scope to expand its activities in the international market. There is presence of high competition in the industry that makes it difficult for the organization to sustain their competitive advantage in the market. However, Slices uses organic raw material unlike organizations that helps the company in gaining identified position in the market along with reputable goodwill as well. The company provides high quality products and services in the market that positions the image of the company premium group organizations (Luomi 2017). Along with the customers, the company adequately serves to the employees of the company as well, due to which the employees create a good image of the company in the eyes of the customers. The company is currently involved in the catering as well as retail business, so they are learning to manage both the activities by interlinking its operations and increasing satisfaction. The company has built their services of food with flare of community services that makes them offer healthy and organic food to customers and philanthropic attitude towards poor. Thus, company earns cost differentiation by providing superior products and standard costs (Hui, and Leong 2016).

The below mentioned are new strategies that the companies should use to initiate competitive advantage in the environment:

Diversification in product and services: In order to implement strategic changes in the organization, the company Slices should diversify their products and services. The management of the company should increase the customer base by providing differentiated products and services to the customers. Apart from serving healthy food, the company should innovate their food by providing fast food to students made up of healthy products. Students love eating food that is tasty and delicious, so the company should improvise the products served in such a way that the students instantly gets attracted towards the company. Further, the company should also inaugurate their outlets in different parts of the country so as to provide better intraday services to the customers (Geldenhuys 2015).

New Strategies for Competitive Advantage

Expansion strategies: As discussed above that the company initiates their business in the boundaries of local market only. But the intangible and tangible competencies of the company say that the company has wide scope to expand their activities in the international market. The company can place themselves in the market of UAE. Also it should be noted that in Abu Dhabi, Slices faces high degree of competition but they will not face the threat of competition on expanding their scope of business. Not much people know about the business of school food expert due to which the company can easily penetrate the market by increasing their international customer base (Ab Talib 2017).

Online sales: The Company should initiate the strategic change activity by initiating physical as well as online sales of the products offered by the company. As the organization wants to improve the eating habit of the students, so they should start selling organic and healthy fast food online. This will create two impacts on the activities of the company, firstly, this will initiate sales of the company through online mode and it will also promote the company’s name in digital media platforms as well. This process will also help the company in diversifying its customer base in the target market. Online sales of the product will add another way through which the company can develop revenue (Sawaya 2017).

Competitive strategy: Competitive strategy is one of the most important strategic changes that Slices should consider in their business. The company as efficient management that adequately supports them in creating advantage, also the tangible and intangible resources of the company helps them in increasing the quality of the product. So, the organization should aim to implement a competitive strategy that eliminates competition from the society and decreases the scope of risks for them as well. The company can gain competitive advantage in the market by categorizing the different customer segments in the market (Sheth, Sinha, and Shah 2016). The target market can be divided in two bases that are premium customers and middle and lower income level customers. So, the company provides products according to the expectations of the customer, this segregation on the basis of price will help the company to deliver satisfaction to the target market on a whole. As now they can easily provide premium services to the high income level people and normal products to the lower income level people at standard rates. The company should also aim to provide differentiation in their products and services (al-Muttahida 2016).

The benefits of strategic changes in the organization Slices are discussed below:

With the help of diversification in the products and services strategy, the company the company aimed to introduce new products and services in activities of retail and catering business of the company. The company wants to introduce products that are customers pocket friendly. Through this diversification process, the company should target the students that are emigrants and are living in Abu Dhabi to study. Further, this process will help the company to penetrate the market capabilities and initiate the sales for the company as well. Diversification in products will also help the company to enter in new product segment and increase the sales of the company with time (Miller, et. al., 2015). Also, with the inauguration with the outlet, Slices can easily increase the sales through retail department of the company. Also, the customers will prefer their products over other companies products because Slices provides rich, healthy and organic products to the customers in the market.

With the use of expansion strategies, the company gains the benefit to increase the market sales by entering in international target market. The expansion strategy will benefit the company to create goodwill in the international market; Slices can expand their business by using Greenfield Investment strategies. This strategy will also help the organization to use the resource of international market improve the brand image of the company in the local market as well. Further the company should further expand in the city where many international students come for further education. This will help them in initiating better expansion strategies (Göbel, et. al., 2015).

Online sales are one of the best ways to increase the revenue for the organization. With the help of ecommerce business, an organization can easily increase the satisfaction level of customers present in the market. Slices with the help of supply chain shall deliver the products to the customers at their places; this can help them in increasing their sales at the time of exams. Also, as the organization provides 24*7 services so they can help students to order food online at night when they are studying with their friends. Thus, this will also help the organization in initiating competitive advantage in the local as well as international market (Jahn, et. al., 2018).

The business model canvas for the value creation of the company is discussed below:

The business model canvas provides the details about the resources and capabilities of the company that they can efficiently use to help the company to gain competitive advantage in the target market. The company Slices should effectively evaluate their business model canvas in order to initiate effectiveness in diverse environment (Vandevijvere, et. al., 2015). The company should work their action plan according to the business model canvas for next 6-12 months and initiate effective strategies to gain success in international environment.

The above mentioned action plan will properly help the company in introducing their outlet in international market as well. The company should start the initiation of the business plan as soon as they enter in the diverse environment. The business plan will help them in taking up action that can help them organizing the business activities for Slices. This activity should be followed by the organization for initial three months. Then the company should focus on setting up their headquarter in the different city (Dudin, et. al., 2015). The company should set-up the office when three months. Furthermore, as the organization also wants to expand their sales by the way of online selling so they should ask the engineers of the company to develop the website; the website should be developed and improved within months from the initiation of the business plan. When all the above mentioned actions are implemented then the company start the advertisement and promotion activities to attract the target customer present in the different market. The advertisement will help the company in recruitment process as well. Lastly, when all activities are implemented then the company should allocate the resource and raw material with the help of which they should produce products and serve it to the customers accordingly (Kiel 2014).

Conclusion

Thus, in the limelight of above mentioned events, it should be noted that the company Slices can easily attain success the adequately using the business model canvas and implementation strategies of the business. By using their resources and capabilities, the company can easily attain success strategically.

References

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