Competetive Strategy - Hansen Natural Corporation Essay

Competetive Strategy - Hansen Natural corp - Essay ExampleAn US smashed Hansen Natural Corporation which food foodstuffs loco drinks and beverages is considered for the purpose of our analysis. Soft drinks food market is a highly emulous market in US and there atomic number 18 numerous polished and large competitors already present in this industry. Policies are also suggested which will be useful for the gild in the value creation over the next four years. One of the most critical issues regarding a stemma is the identification and development of a sustainable competitive advantage. It is much more critical when the business in concern is a small and emerging business where the market is already infested with numerous real competitors. It has been found that many small businesses have often failed to develop competitive advantage over their competitors in the market. The entrepreneur of the business has to take steps in instal to encourage competitive advantage in thei r business. It is noteworthy to mention that the business community never welcomes new entrepreneurs with open arms rather sustain the new entries from appropriating the market share from them. Thus development of competitive advantage is critical for a firm right from the entry stage to the end of the life of the business (Bressler, n.d., p.192) . Areas where the firms need to intervene in order to develop competitive advantage Small businesses are unable to compete with the large firms in toll of price as the price mechanism behavior remains in their hand due to market reputation as well as historical sales background. A typical behavior of a small firm can be given by an example in this case. Suppose a restaurant is opening and when asked its entrepreneur about the chanceive a common answer is that, we will base on balls good food at good prices (Bressler,n.d.,p.193). Marketing mix elements can be viewed to deliver competitive advantage to the businesses. The elements of the marketing mix include product, price, place, and promotion. The companies have to concentrate on these variables in order to gain competitive advantage. Cost also plays an important role in the competitive advantage paradigm (Rothaermel, n.d., p. 201). big(p) companies can negotiate deject costs and have advantages over the smaller companies. However there are possibilities of lowering the costs with the help of less capital equipment, location, overhead, lower distribution cost, lower labor cost, and lower investment cost. Before explaining them in brief with economic theories first of all we will discuss the characteristics of the market of soft drinks in US and its relevance with the Hans Natural Corporation. Characteristics of the soft drinks market in US In the present situation the soft drink industry is highly competitive for all the corporations involved in this business (Davies, n.d.). The soft drinks industry faces pressure from rival seller, new entrants to the industry , substitute goods, suppliers, and buyers. In the US soft drinks industry Coca-Cola, Pepsi Co and Cadbury Schweppes are the largest competitors. In 2004, Coca Colas working capital was nearly $1.1 billion and Pepsicos total sales were $18.4 billion. Many small companies are also there exchangeable Facedrink, Arcadia Brewing Co, Banko Beverage Company, Carolina Canners Inc etc.( Beverage Companies, n.d.). The market is almost saturated and the growth is small. It is pretty difficult prospect for the new entrants in the industry. Another significant barrier