We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Case Study: The Solar Feeder

essay
The whole doc is available only for registered users

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

1. Production cost is too high and in the same production rate too low.

2. Owners have little knowledge about the target market; they should have done market research on buying behavior of birds’ enthusiast particularly women above 35 and below.

3. Solar feeder’s name is a problem; does not include to customer the real purpose of this bird feeder device which is to scare away the squirrel.

4. Advertisement that is not acceptable by the animal lovers.

5. The selling price of $ 300 is too expensive, average price of bird feeder products range from $100 – $150.

6. They do not train their sales promoters in promoting their products.

7. They do not posses a defined strategy.

8. Financial statements are not properly prepared – Inventor figure and cash flow statement are not shown.

9. Owners did not prepare enough cash to meet the start-up loss.

Analysis of Business

Business description: Introduction the solar feeder company is a unique twist on the typical bird feeder, which is resembled a typical birdhouse, but it houses feed instead. The solar feeder is a new technology, which is to prevent squirrels from taking the birdseed with an electronic shock. Due to the solar feeder company’s financial statement are not breaking even, so it is the time for the solar feeder company to implement its plan to increase its sales and production and reduce its cost.

SWOT analysis:

Strength:

1. The product that is highly demanded.

2. Recognition in the form of many awards that is won by the solar feeder.

3. Good relationship with the distributor.

Weaknesses:

1. They did a little marketing research.

2. No expertise in the business namely in marketing and management (e.g.: preparing marketing plan and advertising).

3. Price relatively expensive, production is slow which make them unable to cope with the high demand of the product.

Opportunities:

1. The high demand of the product.

2. Potential of investment.

Threats:

1. Some animal lovers condemned the idea of solar feeder which is utilizing the electrical shock to get off the squirrel from the feeder.

2. The threats of competitors which are offering cheaper products.

Observation in the financial performances:

1. They experience a negative income, this primarily due to excessive expenses.

2. Unable to meet the break even point ( Please refer to the appendix 1)

Industry Environment

1. Competition in this field is not strong. Although there are competitors who offer cheaper than SDI, still it unappealing and does not offer the solar feeder’s technology.

2. Growth opportunity is fairly high considering the extremely high demand.

3. There is strong evidence of the need of changing the production line and promotion strategies to suit the customer preferences.

4. The wholesaler and retailer demanded 100 percent markup on their cost which also indicate the strong wholesaler bargaining power.

5. Dominant strategic game plans evolve around cost leadership and bundling with complementary products. There is also a clear emphasizes on services quality (Hence the need for investment in service system).

6. Customers are not very mobile in moving to other retailers, perhaps due to the lack of any other reliable competitors of SDI.

Recommendations

1. In the effort to improve the promotion of the product, the soar feeder should try different ways of promoting their product since thus far the advertising proves to be ineffective for the animal lovers. Some alternatives are trade shows, gifts, tracts.

2. In the area of financial, it is recommended for the solar feeder to improve their financial statement. Prepare a well-defined budget and tighten the expenses.

3. It is also recommended for the solar feeder to increase their production rate and cutting the cost of production. To cater this objective the outsourcing to other manufacturing is the best solution.

4. Build up strategic vision for the solar feeder. This will be proved to be a guidance of the long term path of the organization.

5. Conduct a more extensive marketing research, this will prove to be handy in deciding the target market, identify their needs and best ways to promoting the product to the targeted market. Marketing research also useful in preparing the marketing plan of the company.

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59