Strategic Management

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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SWOT analysis:
Strengths- The automation technology helps the company ensures the quality and
consistency of the products. The strong relationship with the suppliers helps in easy
accessibility of the rare a2 nutrient milk. Their research backing, which is used for testing the
DNA of the rare composition of milk nutrients. A2 Milk Company is the pioneer of a2
nutrient rich milk and milk products. Another strength can be their strong social media
presence.
Weakness- Pricing can be considered as a weakness as milk is a product, which is consumed
on a daily basis, which contributes to the reasons of price influences.
Opportunities- Lactose intolerant people can be considered as an opportunity segment for
the company. Another opportunity can be the expansion and availability of business in other
countries.
Threat- Competitors like almond and soya milk brands. Another possible threat can be that
competitors in the overall category can figure out the method of DNA testing and start
copying the technological implication.
Strategic dilemma:
The strategic dilemma for a2 Milk Company can be their decision regarding outsourcing their
packaging business or operating it in-house. Both the strategies will have both advantages
and disadvantages. Advantage of outsourcing is the low cost association but lacks the

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assurance of quality control. Advantage of in-house packaging will be costly but can be
helpful in having full control of quality check.
Resources and competencies of the a2 Milk Company, which reflects, sustained
competitive advantage:
1. Automation- The a2 Milk Company adopted the process of automation for the
operational activities, which resulted in the consistency of the quality of the a2 milk
and enabled them to manage production depending on the market demand
(thea2milkcompany.com 2019).
V-Valuable Yes, it is a valuable competency as it ensures the quality
and consistency of the milk and nutrient products.
R-Rare Yes, it is a rare competency as technological support and a
strategic operational plan is required (Chatzoglou 2018).
I-Inimitable No, it cannot be imitated easily because of the
confidentiality in the technological resources and strategic
planning involved in the automation process.
O-Organized The company implemented the strategy of automation
effectively and efficiently by utilizing the available
technological and workforce capabilities.