Product Red Case Study
Product Red
13 April 2014
Introduction
Over the years, businesses have evolved to incorporate consumer views in their practices. As a result, consumer power has become an influential force that directs organizational strategies towards ethical practices. Based on the previously mentioned view, an evaluation of Product red’s strategy provides insight on its strengths, weaknesses, and improvements.
Product Red
Harvard Business School (2009) argues that numerous challenges face various nations. As a result, business organizations should utilize models that contribute to projects that reduce the scourge. Illustratively, the product red strategy inspired business organizations participate in the production and marketing of RED products with an aim of raising funds for AIDS in Africa. This innovative approach of engaging public and private entities in raising funds has enabled the global fund to fight diseases in Africa. Some of the diseases that the global fund targets include AIDs, tuberculosis, and malaria. According to Harvard Business School (2009), RED partners have managed to attract higher revenues since consumers associate the brands with ethical practices.
Strategy Analysis
Product red business has made significant gains in inspiring organizations to produce commodities whose revenues can be contributed to ethical activities. As a result, an evaluation of the model’s strengths and weaknesses reveals some improvements that should be made to enhance the model’s efficiency.
Strengths of the RED Strategy
Harrison (2005) argues that Product RED strategy increases the awareness of consumers and shareholders on the application of ethical practices in their organizations. As a result, consumers and shareholders utilize their influences to demand for social, political, and environmental responsibility. Given the inadequacies in government policy and challenges in the allocation of funds, multinational organizations may
13 April 2014
Introduction
Over the years, businesses have evolved to incorporate consumer views in their practices. As a result, consumer power has become an influential force that directs organizational strategies towards ethical practices. Based on the previously mentioned view, an evaluation of Product red’s strategy provides insight on its strengths, weaknesses, and improvements.
Product Red
Harvard Business School (2009) argues that numerous challenges face various nations. As a result, business organizations should utilize models that contribute to projects that reduce the scourge. Illustratively, the product red strategy inspired business organizations participate in the production and marketing of RED products with an aim of raising funds for AIDS in Africa. This innovative approach of engaging public and private entities in raising funds has enabled the global fund to fight diseases in Africa. Some of the diseases that the global fund targets include AIDs, tuberculosis, and malaria. According to Harvard Business School (2009), RED partners have managed to attract higher revenues since consumers associate the brands with ethical practices.
Strategy Analysis
Product red business has made significant gains in inspiring organizations to produce commodities whose revenues can be contributed to ethical activities. As a result, an evaluation of the model’s strengths and weaknesses reveals some improvements that should be made to enhance the model’s efficiency.
Strengths of the RED Strategy
Harrison (2005) argues that Product RED strategy increases the awareness of consumers and shareholders on the application of ethical practices in their organizations. As a result, consumers and shareholders utilize their influences to demand for social, political, and environmental responsibility. Given the inadequacies in government policy and challenges in the allocation of funds, multinational organizations may