Fresh Connections
EXECUTIVE SUMMARY
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 position of high financial risk pertaining to their R&D costs and it is recommended they refine their contract policies with clients. Furthermore, Fresh Connections is suffering from a number of operational issues and it is recommended that they improve their processes to increase efficiency and eliminate waste without compromising quality. Finally, they do not have a legitimate business level strategy and it is advised that they take the company in a differentiated direction.
ANALYSIS
Porter’s 5 Forces Analysis of Fresh Connection 1. Degree of Rivalry: Competitive rivalry describes the intensity of the competition among existing firms. In the fresh food industry, the intensity of rivalry is influenced by different factors. They are :
* Price Rivalry - In this industry, big companies can substantially decrease the price and drive the volumes of industry and this can create a problem for Fresh Connections since they are a new firm and keeping prices too low will not sustain fresh connection’s business.
* Rivalry Based On Experience - The buyer is reassured when a firm is in the industry for many years. Buyers will not hesitate to give bulk orders to the big players since they know that scalability won’t be an issue for them. 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.
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 position of high financial risk pertaining to their R&D costs and it is recommended they refine their contract policies with clients. Furthermore, Fresh Connections is suffering from a number of operational issues and it is recommended that they improve their processes to increase efficiency and eliminate waste without compromising quality. Finally, they do not have a legitimate business level strategy and it is advised that they take the company in a differentiated direction.
ANALYSIS
Porter’s 5 Forces Analysis of Fresh Connection 1. Degree of Rivalry: Competitive rivalry describes the intensity of the competition among existing firms. In the fresh food industry, the intensity of rivalry is influenced by different factors. They are :
* Price Rivalry - In this industry, big companies can substantially decrease the price and drive the volumes of industry and this can create a problem for Fresh Connections since they are a new firm and keeping prices too low will not sustain fresh connection’s business.
* Rivalry Based On Experience - The buyer is reassured when a firm is in the industry for many years. Buyers will not hesitate to give bulk orders to the big players since they know that scalability won’t be an issue for them. 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.