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Introduction Of Global Marketing Of Supernatural Oils Assignment
The report is mainly concerned with the invention strategy for the Global marketing of Supernature Oils which is a UK based company. The study includes a discussion regarding the different internal as well as the external analyses of a company to determine the current situation of the business. Further, it also covers the strategic concern for the situational analysis of the business in the new market. The business is planning to enter the new market of Scotland. At last, it covers certain recommendations in terms of short in addition to the long for the new market.
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A brief overview of the company
Background of the company
Supernature Oils is made from summertime oil-seed rape, a rapid crop cultivated in the heart of Scotland without the need for weed killers or fumigants. Once collected, the seed would be lightly chilly before being finger in a germ-free bottling space transformed from an old bothy at Carrington Barns Farm (Islami, Mustafa, & Topuzovska Latkovikj, 2020). The owners of the business are highly passionate about quality oil and they harvest the seeds with a low level of moisture content as well as cold pressing is based on the demand. Further, Supernature Oils is the only cold-pressed rapeseed oil producer in the UK as well as achieve many awards.
Porter’s Generic Strategies
Even though the agricultural sector in the UK is mature, established, as well as sophisticated, several more farms but also homesteads have indeed been compelled to broaden to thrive in the twenty-first century. The selected product is infusion by Supernature Oils which is a home-grown nutrient-packed oil that is ultimately versatile as well as deliciously healthy with some virgin olive oil (Firoz Suleman, Rashidirad, & Firoz Suleman, 2019). The infusion oils are mainly a combination of different elements like coriander in addition chili along with many other substances which makes a difference in the product. This product is likely to enter a new market, which is Ireland and it is important to consider the environment as well as buying patterns of the customers. The customers in Ireland are Supermarkets, specialist retailers, hotels, and restaurants as well (Paul, 2019). The different study shows that the food and drink industry is a highly growing sector of Ireland that shows the positive side of launching new products in the marketplace. It will be helpful for Supernature Oils to identify different business opportunities and attractive options for investment and make a certain level of profit.
However, the selection of Ireland to launch a new product like infusion oils is viable as it is likely to be profitable and people are more interested in variations in eating habits. As per the Porter Generic strategy, the strategy of Supernature Oils is to carry the business with a golden glow that is based on the agenda of the business. They always stick to the quality of products as it is a highly important factor for them to serve the best quality. Thus, their decision is viable to enter the new market as it helps them to grow in a new environment which helps them to face different challenges in the future (Tadeo, & Muralla, 2022).
Outline the countries and trading blocs the company operates in
Supernature Oils began as a leased local farm diversifying on the farm which has belonged to the family for over 160 years. In the intent facility, the firm expands the crop, presses it, bottles it, as well as labels it (Debebe, 2020). The products of the business are mostly awarded the cold presses oils in the UK over 30 producers and there is the broadest range for the infused CPRO in Europe. The trading bloc is Europe only where the company operates its business. It shows the different areas and preferences of the business towards the demand of the customers.
Internal and external analysis of the company
Value Chain of the company
Value chain evaluation is an approach that aids businesses in pinpointing the essential processes that contribute worth to their offerings as well as in comprehending how such processes may be enhanced to boost their financial performance as well as competitiveness (Zamora, 2016). The value chain analysis listed below can be carried out in the scenario of Supernature Oil to identify its current strategic situation:
![Value Chain of the company]()
Figure 1: Value Chain of the company
Source: (Hogervorst, 2019).
| Inbound logistics |
The inbound logistics usually operations including the procurement as well as acquisition of raw resources, like as organic plant oils. |
Supernature Oil obtains its plant natural oils from a variety of foreign in addition to domestic vendors. Yet, the business is renowned for its dedication to fair manufacturing as well as resource conservation, which may be a crucial differentiator in the Scotland market. |
Also, the business uses premium ingredients, which appeals to consumers who are concerned about their health (Musa, 2013). |
| Operations |
Preparing as well as purifying crude ingredients to create manufactured product like cooking oil, lotion, as well as beauty oil are included in this. |
Contemporary technology is employed by Supernature Oil's processing facility to separate, cleanse, as well as blend natural plant oils (Manchanda, 2016). |
To develop cutting-edge products that satisfy the requirements of its clients, the business has made substantial expenditures on scientific research as well as development. |
| Outbound logistics |
In order to expand its customer base, supernature Oil has formed agreements with merchants in addition to distributors with in Scotland. |
The company's goods can be purchased at a number of retail locations, such as groceries, health food stores, and in various e-commerce sites. |
With its homepage, the business additionally facilitates commercial selling, adding further distribution platform. |
| Marketing and sales |
A powerful brand personality for Supernature Oil is built on ethical business practices, environmentalism, as well as the greater merchandise. |
The business's promotional activities place a strong emphasis on the products' positive health effects as well as its dedication to environmentally friendly manufacture (Kreie, 2013) |
Also, the business communicates with consumers on Facebook and other digital channels, which promotes brand recognition as well as customer retention. |
| Services |
Outstanding client service provided by Supernature Oil involves product information, post-purchase assistance, with product warranties. |
The business's customer service representatives are courteous and competent, which promotes client devotion and confidence (Hogervorst, 2019). |
Porters 5 force model
Michael Porter created the Porter's Five Forces research model in 1979 to study the market environment of a specific business. The model aids in locating the variables that affect a company's financial performance in a certain industry (Goyal, 2020). Below given is the detailed Porters 5 force model of Supernature oil to identify its current strategic position in Scotland.
![Porters 5 force model]()
Figure 2: Porters 5 force model
Source: (Goyal, 2020)
- Threat of new entrants: Given the substantial upfront outlay needed to commence increasing productivity as well as the difficulties in creating network infrastructure, the Summertime Oil-Seed Rape by Supernature Oil may suffer a moderate to small risk from smaller entrants. Government incentives, on the other hand, might also help the sector and entice new players to the marketplace (He, 2018).
- Bargaining power of suppliers: Because to the company's dependence on a multitude of supplies, including seedlings, manure, as well as insecticides, vendors may have low to moderate negotiating strength. Yet, because the sector needs such vast quantities of inputs, it could be capable of settling on advantageous terms with suppliers.
- Bargaining power of buyers: Given the possible availability of substitute harvests or oil sources, customers' negotiating power could range from moderate to high for the summertime oil-seeded rape business. Because moving to cash crops has low expenses for switching, consumers may also bargain for cheaper pricing (Thara, 2018).
- Threat of substitutes: Buyers may opt to acquire other crops or oils, like sunflowers, soya, or palm oil, posing a modest danger of substitute to the summertime oil-seeded rape company, Supernature Oils. Supernature Oils might be capable of standing out from other commodities, nevertheless, by emphasising its health advantages or dedication to environmental sustainability.
- Rivalry among existing competitors: The possibility of a shortage of consumers and vendors, which could heighten competition, the summertime oil-seed rape of Supernature Oils market may experience moderate to high intensities of competitiveness between its current rivals. Moreover, conditions like weather systems and pest attack, that could have an impact on harvests and cost of production, may have an impact on the company.
TOWS analysis
An organization's within and outside effects are usually evaluated using the TWOS analysis as a decision-making technique. Threats, Opportunities, Weaknesses, and Strength make up the abbreviation "TWOS," which is used in the name. Below given is the TWOS analysis for Supernature Oil that will be analysed using the both internal and external done in the above section.
| Tows Matrix |
External Factors |
| Opportunities (O) 1. Increasing consumer interest for non-GMO and natural goods 2. Growing interest in green agricultural techniques 3. Increasing knowledge of rapeseed oil's health advantages 4. Government measures that are beneficial to the agriculture industry 5. Bioenergy demand is rising. |
Threat (T) 1. Fierce rivalry between crop producers 2. Variation in the price of commodities globally 3. Negative weather impacts on crop productivity 4. Adapting laws and policies that have an impact on the industry 5. Diseases and pests that affect agricultural yield |
| Internal Factors |
Strengths (S) 1. Effective and knowledgeable staff 2. A well-known brand in the marketplace 3. Network of distribution and supply chains with a solid foundation 4. Network of distribution and supply chains with a solid foundation 5. Dependable production of top-notch goods 6. Sound business standing and capacity to make investments in R&D |
Strengths/Opportunity 1. The company's opportunities and strengths lay a solid platform for expansion and prosperity. |
Strengths/Threats 1. Use of contemporary technology might work as both strengths and threats as using this will help Supernature Oils to manufacture oil in the best possible manner however the additional cost of new technology might pose a threat over the company. |
| Weaknesses (W) 1. Reliance on a specific crop to generate income 2. Restricted geographic scope 3. Restricted product portfolio diversity 4. Reliance on outside vendors for some raw materials 5. A considerably large cost of manufacture |
Weakness/Opportunity 1. The dependence of external supplier might work as weakness as well as opportunity because the company will able to make new alliances with news vendors however dependence will work as a weakness for them too. |
Weakness/Threats 1. The business's reliance on a particular crop as well as its lack of product diversification could constitute vulnerabilities or threats. |
Strategic concerns in the new market
A corporation or institution that confronts a substantial problem or obstacle in accomplishing its strategic aims or goals is said to have a strategic concern. It is an important element that must be carefully considered as well as planned for in order for the organisation to better execute and get over it. Many causes, including as modifications to the marketplace, changes in the law, technical developments, competitive forces, or internal difficulties like operational problems or economic limitations, might give rise to strategic worries. Creating and carrying out plans and strategies, programs, including activities that seek to reduce dangers and take advantage of opportunities in order to realise the organization's strategic aims are typical steps in resolving strategic concerns (Heugens, 2023).
The strategic concerns that the Supernature oil will face while entering the new market of Ireland are discussed in detail below. The strategic concerns will be directly linked with the TWOS analysis’s weakness and threats points identified in the above discussed segment. Below is the identifiable strategic concern for Supernature Oil.
- Competition from other same oil producers: Supernature oil might face the strategic issue of great competition from the other same oil producer. The people staying in Ireland are same health conscious as well as they might be already using some other same oil which the Supernature Oils produced in Scotland. Thus, might be one of the most prominent issues which the company has to face while entering Ireland.
- Variation in the price of commodities: Pricing of any product plays a very important role in maintaining the competitiveness which plans to enter a new market. And it is obvious people will be accepting any product which is taking higher prices when they are getting the same product in cheaper price. The same products which are already accessible in Ireland is much cheaper as compared to the Supernatural Oil. Thus, it will be important for the company to reconsider the pricing strategy considering the Irish customer demand so as to easily mark a name in the oil market of Ireland (Heugens, 2023).
- The business's reliance on a particular crop as well as its lack of product diversification: By depending on a solitary yield for oil creation, Supernature Oil might restrict its market valuable open doors to a specific district or client base. On the off chance that interest for the harvest declines or on the other hand assuming contenders offer better other options, the business might battle to draw in new clients or hold the active ones. Lacking of product variety, Supernature Oil in additional cannot find the inspiration to experiment and create novel items. This may make it more difficult for business to adjust to shifting consumer demands or competitive pressures Ireland.
- Adapting laws and policies: For Supernature oil in Ireland, adjusting to legislation and regulations is a critical strategic concern. Ireland's laws and regulations controlling the extraction and delivery of oil are continually changing, and breaking them has both economic and legal implications. As a result, compliance with these rules and regulations must be ensured in order to prevent legal problems. In addition to this, the expense of complying with rules and regulations, as well as possible penalties for non-compliance, might be incurred by the Supernature Oil if they wish to run their business in Ireland.
- Use of contemporary technology: In a developing market like Ireland, implementing modern technologies will necessitate personnel with the requisite knowledge and abilities. It might be difficult for Supernature Oil to find and keep employees with the necessary technical knowledge. It can be difficult to integrate modern technology within continuing operations because it calls for considerable adjustments to facilities, procedures, including personnel training. This may result in glitches and unavailability, which could have an impact on profitability and production of Supernature Oil in Ireland (Heugens, 2023).
Recommendation
Getting entry into any new market is not an easy task and any company whether it’s a SME or MNC has to face various strategic issues. From the above discussion it can be seen that Supernature Oil of Scotland is planning to establish their operation Ireland and in order to do so various strategic issues has been identified which they need to consider before starting their business in the new market. So, in order to deal with the identified strategic issues below mentioned are some of the important recommendations which they need to take into consideration.
| Recommendation |
Descriptions |
| Short Term |
Focusing on product differentiation is a short-term suggestion for managing Supernature Oil competition in Ireland. Supernature Oil may stand out from rival companies and draw customers by providing distinctive and cutting-edge products. The business must conduct market surveys to comprehend client wants and needs, make investments in product innovation and marketing, and give customer support top priority in order to fulfil this proposal. |
| Medium Term |
Supernature Oil may also think about providing goods under its own name brand to merchants or other companies. This could aid the business in attracting new clients and creating new streams of income. To put this advice into action, the business should evaluate the viability of global expansion and develop partnerships where necessary. As a medium-term recommendation Supernature Oil can also collaborate with other companies to create co-branded goods or provide bundles. This could result in a stronger business model and draw in more clients. Investing in research and development to investigate the application of new technologies in the manufacturing operation is one medium-term suggestion for dealing with present technology for Supernature Oil in Ireland. Supernature Oil can boost productivity, cut expenses, and raise the calibre of its output by utilising technology. |
| Long term |
Creating a varied distribution network is one long-term suggestion for addressing variations in the price of Supernature Oil in Ireland. The business may collaborate with a variety of vendors for production factors and natural resources. This can lower the possibility of disruptions to the supply chain and give business more power to negotiate to get better terms. In order to do vertical integration of its supply chain, Supernature Oil may want to own or manage the manufacturing of its raw resources. As a result, could be greater management over through the quality and accessibility of sources and less reliance on outside vendors. |
Conclusion
From the above study, it can be summarized that the choice of an industry's entry framework for a product country is affected by an assortment of variables, most of which are hostile. It is quite challenging for Supernature Oils to enter a new market in Ireland as many factors affect the activities of a business in a positive as well as negative way. However, some key factors affect the selection of market mode. Thus, it is important to deal with the challenges in the new marketplace and offer different price criteria so that people can make a proper choice. It is beneficial for the business to experience a different level of aspects as well as concerns which makes a viable choice.
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