ACME Birdseed Company: Strategic Factors and Market Analysis Report

This report provides a comprehensive strategic analysis of ACME Birdseed Company, examining key factors such as competitor reactions, environmental constraints, and internal problems and opportunities. The analysis delves into the challenges faced by the company, including declining market share and financial losses, and explores potential strategies to regain market position. The report highlights the importance of innovation and brand promotion as key strategies, while also evaluating the pros and cons of each approach. Furthermore, it examines competing low-cost strategies, including market segmentation and cost leadership, and provides insights into the benefits and drawbacks of these strategies. The report concludes with a discussion of the importance of customer loyalty and the need for a strategic plan to address the company's challenges and restore profitability.

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Strategy and Strategic Factors at ACME Birdseed Company

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Table of Contents
1..................................................................................................................................................3
Strategic Factors.....................................................................................................................3
Competitors Reaction.........................................................................................................3
Environmental Constraints.................................................................................................3
Problems / Opportunities........................................................................................................4
2..................................................................................................................................................4
3..................................................................................................................................................6
Strategies to Regain Market Position.....................................................................................6
Innovation...........................................................................................................................6
Promoting Brand.................................................................................................................6
Pros and Cons of Strategies....................................................................................................7
Pros.....................................................................................................................................7
Cons....................................................................................................................................7
4..................................................................................................................................................7
Competing Low-Cost Strategies.............................................................................................7
Market Segmentation..........................................................................................................7
Cost Leadership..................................................................................................................8
Pro and Cons of Strategies.....................................................................................................8
Pros.....................................................................................................................................8
Cons....................................................................................................................................8

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1.
The economics, government, competitors, customers, as well as the ecosystem are all
uncontrollable factors that might have an impact on an organization's effectiveness. Strategic
management is concerned with a company's clear understanding of its aim, desired outcome,
and guiding principles. The approach necessitates strategic planning a subsection of company
planning that involves a business's ability to establish both short- and long-term goals.
Strategic planning also includes the business choices, activities, and capital allocation
necessary to achieve those goals.
Strategic Factors
The global factors of a corporation are always evolving in circumstances that are beyond the
control of an organization, but supervisors and employees may monitor these advancements
and minimize their repercussions.
Competitors Reaction
As discussed in the study that more and more competitors entered the market and get
successful with their new marketing strategies and products. Some of them also go against
regulatory acceptability and reduce costs to maximize the market share. If a corporation
decides to adopt an aggressive strategy that directly influences important rivals' reactions, the
business may likewise undertake an aggressive counter-plan for security. It would be
ridiculous to expect the corporation to ignore such a possibility.
Environmental Constraints
The accessibility and involvement of a component with its external environment determine its
survival, development, and hence profitability. The external environment consists of the
public at large, which includes investors, vendors, competitors, consumers, creditors, the
state, and society. The amount and extent of the company's reliance on the environment

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frequently govern strategic flexibility. The environmental constraints that influence the
company were labor, marketing, and shipping costs that is why ACME has to shift from
highest quality products to average quality products.
Problems / Opportunities
 ACME has a good opportunity to gain the trust of customers by again producing high-
quality products because they have reliable, large, and affordable suppliers.
 The philanthropic efforts of ACME are an opportunity as it has benefited the company to
promote bird safety.
 The recession of 2010 was drastic for the whole world as well as for ACME as the
company still does not recover from that recession.
 The less interest in birds from the latest generation is also a problem for ACME.
2.
People present to company governance for a variety of reasons, including advocating a new
path for the business, presenting a difficult legal matter that requires a speedy decision, or
just providing an overview of an existing project. However, school administrators,
neighborhood watch boards, apartment boards, non-profit panels, and employee boards come
in many forms and sizes. If I would be CEO of ACME, I would be concerned about the net
loss of $14 million in the last quarter which results in a consecutive eight-quarter loss. The
main point of concern is new market entrants and competitors that have made it difficult for
ACME to engage more customers because the new competitors are using new effective
marketing strategies to attract more customers that help them increase sales. The
organization’s plan of growth is also the main concern as in the last eight quarters the
company is in loss and lost a major market share because of competitors.

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Restoring the profitability and stock price for a long-term period is also a major concern that
Angela Baker would have, as it is the most difficult task to complete. Close cost control can
help to drive revenue. Most organizations will find ways to reduce trash; however, it is vital
not to save costs at the expense of products and services. Among the most obvious strategies
to enhance income is to purchase more effectively. It makes sense for ACME to assess their
supplier network regularly to determine if they can get the same raw materials more
economically or effectively. However, make an effort to guarantee that the organization
maintains quality at the same time.
The other concern is also about the suppliers as the company is using average quality
products to cut the costs so the suppliers notice that there is no potential in working with
ACME as they have fewer profits selling average products to ACME. Angela Baker would
come up with a great strategic plan to counter this issue as it directly damages the quality of
products and damages the reputation of the company. Imagine using the company's position
as a loyal customer to renegotiate long-term deals or fair annual minimal expenditure with the
recurring vendors to achieve a cheaper price. The corporation may acquire as part of a joint
venture with other related companies. If ACME is unable to negotiate a better bargain, try
moving to another supplier.
Customer loyalty is also quite a concern as many customers shifted their loyalty towards
competitors. Customer loyalty is essential for both productivity and expansion. Expansion is
accomplished by giving a bigger and more consistent client base, which creates greater profit
since loyal consumers cost very little and invest more. Lucrative growth can only arise from a
plan that produces devoted clients.

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3.
Strategies to Regain Market Position
Businesses usually compete in terms of market size or the volume of a certain industry's
customer retention. When a corporation drops its share of the market to a competitor, it often
utilizes a variety of strategies to strike back, including reduced prices, expanded marketing
campaigns, and product development.
Innovation
ACME needs innovation to regain its market position. Customer-attracting innovation can
take many shapes. Another scenario is useful, a new technology that a company creates,
markets, and enhances before competitors. Product development, changes in fabrication
methods, and marketing approaches are some more ways to evolve to attract customers. The
ability for high-value innovation exists across an organization. Market leaders prioritize
product development. Even if the product does not change, the company can still improve.
Consider how Starbucks' marketing consistently attracts new attention to changing seasonal
trends. There is always room for innovation. All ACME has to do is identify it.
Promoting Brand
A further option is to increase its promotional efforts, which might include boosting the
marketing spend or leveraging the company's brand power. Experimenting with marketing
campaigns can be extremely beneficial or simply a costly play depending on how effectively
business leaders grasp the specific difficulties that need to be addressed. Advertisement,
marketing, and distribution are tried and true strategies for regaining the customer base, but
keep in mind that promotion is a continual activity, and the competitor is also spending
heavily on marketing. ACME has to revamp the branding strategy.

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Pros and Cons of Strategies
Pros
 Branding assists businesses in raising public awareness of their products or services. This
method results in the spread of the business's advertising message to a broader audience.
 Employees will be more productive if they have access to the newest technologies and
technologies. In addition, there are several more advantages to increased efficiency.
Cons
 The branding process entails significant development expenses on the side of the
company. They must spend a lot of money on marketing and PR to keep their business
image up.
 When an invention backfires, such as customers being dissatisfied with a shift in the
pattern of experiences, reputational repercussions can be severe.
4.
Competing Low-Cost Strategies
When a corporation can use its talented staff, affordable raw resources, regulated expenses,
and efficient processes to provide maximum value for consumers, it has a cost-competitive
edge.
Market Segmentation
Market segmentation is appealing to businesses because it allows them to classify clients based on
their requirements to better serve customers and give more quality than opponents. There are
several approaches to segmentation in business, including standardization, segmentation, and focus
strategy. Making one item that serves everybody is a standardizing approach, and it is generally a
mass-market product. It is frequently connected with low-cost goods and services and it employs a
low-cost-high-volume strategy. Through large volume needs, it aims to achieve economies of scale.

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Cost Leadership
The CEO should recommend cost leadership strategies to the board of directors. Large
corporations employ cost-cutting measures to obtain the lowest feasible production and
distribution costs and maximize profits. Companies that explore outlay efforts often have
purchasing, manufacturing, and advertising skills that help in cost control. With little
embellishments, basic commodities, and piercing prices, this strategy frequently targeted
valuation clientele. Because this is the easiest competitive strategy to reproduce, other large
competitors may be able to establish a cheaper cost to gain market share. Cost-cutting
strategies, on the other end, can help large organizations beat off competing businesses and
companies that may lack the organizational strength and scale necessary to drive expenses to
their lowest rate.
Pro and Cons of Strategies
Pros
 Consumer profiles are simple to grasp across the panel, making strategy formulation and
internal communication across sectors easier (e.g., sales, customer service, management,
etc.).
 Cost leadership styles are concerned with establishing low-cost processes in their
marketplace and sector. Lowering development and manufacturing costs allows for
bigger profit margins to emerge for ACME.
Cons
 It can be difficult to translate attitudinal qualities into a traditional database architecture,
which can occasionally result in a loss of efficacy in terms of replicability.

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 The purpose of cost leadership is to reduce manufacturing costs while still providing an
optimum quality that fulfills the user's fundamental demands. A good product is not the
same as an excellent product.