Cavinkare Private Limited B Vision and Strategy Case Solution

The Harvard Business Review published a case study that primarily focuses on Cavinkare Private Limited B Vision and Strategy. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Cavinkare Private Limited B Vision and Strategy has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Cavinkare Private Limited B Vision and Strategy using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Cavinkare Private Limited B Vision and Strategy faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Cavinkare Private Limited B Vision and Strategy to ensure that the company is able to respond to all the changes in the macro-environment. This is because Cavinkare Private Limited B Vision and Strategy cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Cavinkare Private Limited B Vision and Strategy will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Cavinkare Private Limited B Vision and Strategy.

• It is important for Cavinkare Private Limited B Vision and Strategy to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Cavinkare Private Limited B Vision and Strategy by impacting imports and exports.

Economic

• Cavinkare Private Limited B Vision and Strategy can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Cavinkare Private Limited B Vision and Strategy, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Cavinkare Private Limited B Vision and Strategy with more investment opportunities.

• The flexibility in the labor market allows Cavinkare Private Limited B Vision and Strategy to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Cavinkare Private Limited B Vision and Strategy to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Cavinkare Private Limited B Vision and Strategy to develop and align communication as well as marketing strategies accordingly.

• Cavinkare Private Limited B Vision and Strategy has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Cavinkare Private Limited B Vision and Strategy to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Cavinkare Private Limited B Vision and Strategy should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Cavinkare Private Limited B Vision and Strategy to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Cavinkare Private Limited B Vision and Strategy should adopt eco-friendly products to establish better relationships with the stakeholders.

• Cavinkare Private Limited B Vision and Strategy can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Cavinkare Private Limited B Vision and Strategy should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Cavinkare Private Limited B Vision and Strategy as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Cavinkare Private Limited B Vision and Strategy can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Cavinkare Private Limited B Vision and Strategy’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Cavinkare Private Limited B Vision and Strategy.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Cavinkare Private Limited B Vision and Strategy can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Cavinkare Private Limited B Vision and Strategy operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Cavinkare Private Limited B Vision and Strategy operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Cavinkare Private Limited B Vision and Strategy to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Cavinkare Private Limited B Vision and Strategy. The company can also switch suppliers for more reasonable pricing.

• Cavinkare Private Limited B Vision and Strategy can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Cavinkare Private Limited B Vision and Strategy industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Cavinkare Private Limited B Vision and Strategy can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Cavinkare Private Limited B Vision and Strategy can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Cavinkare Private Limited B Vision and Strategy operates.

• Expensive substitutes are available in the industry of Cavinkare Private Limited B Vision and Strategy, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Cavinkare Private Limited B Vision and Strategy operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Cavinkare Private Limited B Vision and Strategy operates has highly differentiated products, making it difficult for companies to win each other customers.

• Cavinkare Private Limited B Vision and Strategy can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Cavinkare Private Limited B Vision and Strategy can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Cavinkare Private Limited B Vision and Strategy to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Cavinkare Private Limited B Vision and Strategy has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Cavinkare Private Limited B Vision and Strategy to have a high level of customer engagement (Rizaldi, 2015).

• Cavinkare Private Limited B Vision and Strategy has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Cavinkare Private Limited B Vision and Strategy has a strong brand image in the market.

• A low-cost structure of Cavinkare Private Limited B Vision and Strategy has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Cavinkare Private Limited B Vision and Strategy is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Cavinkare Private Limited B Vision and Strategy has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Cavinkare Private Limited B Vision and Strategy on its research and development is comparatively less to other competitors of the market.

• Cavinkare Private Limited B Vision and Strategy uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Cavinkare Private Limited B Vision and Strategy operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Cavinkare Private Limited B Vision and Strategy. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Cavinkare Private Limited B Vision and Strategy can take it as an opportunity to expand its online presence.

• Cavinkare Private Limited B Vision and Strategy can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Cavinkare Private Limited B Vision and Strategy can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Cavinkare Private Limited B Vision and Strategy to expand its operations in multiple countries.

• Cavinkare Private Limited B Vision and Strategy can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Cavinkare Private Limited B Vision and Strategy, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Cavinkare Private Limited B Vision and Strategy to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Cavinkare Private Limited B Vision and Strategy.

• There has been constant pressure on Cavinkare Private Limited B Vision and Strategy to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Cavinkare Private Limited B Vision and Strategy.

VRIO Analysis

Cavinkare Private Limited B Vision and Strategy uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Cavinkare Private Limited B Vision and Strategy has a strong brand image and engages in corporate social responsibility.

• Cavinkare Private Limited B Vision and Strategy has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Cavinkare Private Limited B Vision and Strategy is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Cavinkare Private Limited B Vision and Strategy focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Cavinkare Private Limited B Vision and Strategy has been able to penetrate the market through its ability to raise large funds.

Rare

• Cavinkare Private Limited B Vision and Strategy operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Cavinkare Private Limited B Vision and Strategy has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Cavinkare Private Limited B Vision and Strategy has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Cavinkare Private Limited B Vision and Strategy is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Cavinkare Private Limited B Vision and Strategy is its high-quality products. These products have allowed consumers to make repeat purchases.

• Cavinkare Private Limited B Vision and Strategy operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Cavinkare Private Limited B Vision and Strategy to attract more customers.

• Cavinkare Private Limited B Vision and Strategy has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Cavinkare Private Limited B Vision and Strategy maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Cavinkare Private Limited B Vision and Strategy to explore more product development opportunities.

• Cavinkare Private Limited B Vision and Strategy is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Cavinkare Private Limited B Vision and Strategy that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Cavinkare Private Limited B Vision and Strategy to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Cavinkare Private Limited B Vision and Strategy to formulate effective strategies to achieve the company objectives.

Product

• Cavinkare Private Limited B Vision and Strategy has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Cavinkare Private Limited B Vision and Strategy to its customers. These distinctive products are not easily available at competitors.

• The products of Cavinkare Private Limited B Vision and Strategy are of higher quality, and thus, customers pay more prices for these products.

• Cavinkare Private Limited B Vision and Strategy designs products with traditional designs giving customers more product variety.

• Cavinkare Private Limited B Vision and Strategy offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Cavinkare Private Limited B Vision and Strategy to its customers.

Price

• Cavinkare Private Limited B Vision and Strategy follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Cavinkare Private Limited B Vision and Strategy for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Cavinkare Private Limited B Vision and Strategy to its customers.

Place

• Cavinkare Private Limited B Vision and Strategy uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Cavinkare Private Limited B Vision and Strategy globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Cavinkare Private Limited B Vision and Strategy has partnered with delivery service companies to distribute its products effectively to consumers.

• Cavinkare Private Limited B Vision and Strategy has also adopted an omni-channel distribution system.

Promotion

• Cavinkare Private Limited B Vision and Strategy uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Cavinkare Private Limited B Vision and Strategy to increase brand awareness.

• Cavinkare Private Limited B Vision and Strategy takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Cavinkare Private Limited B Vision and Strategy also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Cavinkare Private Limited B Vision and Strategy to attract and retain customers.

Value Chain Analysis

Cavinkare Private Limited B Vision and Strategy can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Cavinkare Private Limited B Vision and Strategy’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Cavinkare Private Limited B Vision and Strategy has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Cavinkare Private Limited B Vision and Strategy are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Cavinkare Private Limited B Vision and Strategy has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Cavinkare Private Limited B Vision and Strategy invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Cavinkare Private Limited B Vision and Strategy to effectively devise and build sales and marketing activities.

• Cavinkare Private Limited B Vision and Strategy offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Cavinkare Private Limited B Vision and Strategy has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Cavinkare Private Limited B Vision and Strategy has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Cavinkare Private Limited B Vision and Strategy uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Cavinkare Private Limited B Vision and Strategy has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Cavinkare Private Limited B Vision and Strategy are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Cavinkare Private Limited B Vision and Strategy can increase the capacity of its production so it can reach more of the customers in its existing market.

• Cavinkare Private Limited B Vision and Strategy can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Cavinkare Private Limited B Vision and Strategy in marketing and sales activities to increase the chances of successful market penetration.

• Cavinkare Private Limited B Vision and Strategy can design and develop a content that increases customer engagement within a particular marketplace.

• Cavinkare Private Limited B Vision and Strategy can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Cavinkare Private Limited B Vision and Strategy to penetrate the market.

• Cavinkare Private Limited B Vision and Strategy can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Cavinkare Private Limited B Vision and Strategy can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Cavinkare Private Limited B Vision and Strategy to mitigate the risk factors, and to gain customer groups of the market.

• Cavinkare Private Limited B Vision and Strategy can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Cavinkare Private Limited B Vision and Strategy to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Cavinkare Private Limited B Vision and Strategy for growth purposes. This will also take into consideration the cultural differences.

• Cavinkare Private Limited B Vision and Strategy should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Cavinkare Private Limited B Vision and Strategy.

• Cavinkare Private Limited B Vision and Strategy should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Cavinkare Private Limited B Vision and Strategy should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Cavinkare Private Limited B Vision and Strategy can come up with new improvements and modifications in the existing products to attract the market.

• Cavinkare Private Limited B Vision and Strategy should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Cavinkare Private Limited B Vision and Strategy to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Cavinkare Private Limited B Vision and Strategy can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Cavinkare Private Limited B Vision and Strategy can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Cavinkare Private Limited B Vision and Strategy, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Cavinkare Private Limited B Vision and Strategy can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Cavinkare Private Limited B Vision and Strategy should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Cavinkare Private Limited B Vision and Strategy should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Cavinkare Private Limited B Vision and Strategy should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Cavinkare Private Limited B Vision and Strategy is less affected by the new emerging competition in the industry.

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