Case Analysis

Rising of the company’s profit is the key task for the management. Improvement of the Bootstrap Food needs some decisive steps, such as possible sub branding and changes in the production patterns.

So, studying the case following points can be noticed.

First, the market volume is stable and can not be changed for the most part of the production line. Second, price is the key reason for the purchasers’ choice of the specified product, so buyers have not strongly pronounced preferences of the certain brand. That is why, the market demonstrates the strong price competition.

Company’s strengths consist in large production line and great annual sales. Weaknesses are the high level of operating costs and absence of the vertical integration. Opportunities include a possibility to start cooperation with the smaller markets. Also, we can decrease the operational level and improve the profits. Threats are the following: if economic situation worsens and company can not lessen the prices as its competitors can, its share of the market can lessen essentially.

So, in the long run company should develop vertical integration and decrease the operation costs maximally.

To increase the price is inacceptable for the company production line because it can provoke the decrease of demand. Hence, the company can create sub brands to implement the product line with a larger added value. For the cooperation with the smaller market, it is possible to create a sub brand product line with few products in it. The creation of such canned products as prepared meals within the sub brand line (with the promo “Just open and eat”) can be considered as one of the variants to enter the smaller markets and to promote the brand.

So, as it can be seen, to improve the company’s profits is a possible, but very challenging task that needs considerable marketing efforts and changes in the production patterns.