Gravity Payments Minimum Wage is a Heavy Load Case Solution

The Harvard Business Review published a case study that primarily focuses on Gravity Payments Minimum Wage is a Heavy Load. 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, Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to ensure that the company is able to respond to all the changes in the macro-environment. This is because Gravity Payments Minimum Wage is a Heavy Load cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Gravity Payments Minimum Wage is a Heavy Load will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Gravity Payments Minimum Wage is a Heavy Load.

• It is important for Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load by impacting imports and exports.

Economic

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Gravity Payments Minimum Wage is a Heavy Load with more investment opportunities.

• The flexibility in the labor market allows Gravity Payments Minimum Wage is a Heavy Load to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Gravity Payments Minimum Wage is a Heavy Load to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Gravity Payments Minimum Wage is a Heavy Load to develop and align communication as well as marketing strategies accordingly.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load 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).

• Gravity Payments Minimum Wage is a Heavy Load should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Gravity Payments Minimum Wage is a Heavy Load to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Gravity Payments Minimum Wage is a Heavy Load should adopt eco-friendly products to establish better relationships with the stakeholders.

• Gravity Payments Minimum Wage is a Heavy Load can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Gravity Payments Minimum Wage is a Heavy Load should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Gravity Payments Minimum Wage is a Heavy Load as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load’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 Gravity Payments Minimum Wage is a Heavy Load.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load 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.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Gravity Payments Minimum Wage is a Heavy Load. The company can also switch suppliers for more reasonable pricing.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load industry is weak.

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

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Gravity Payments Minimum Wage is a Heavy Load operates.

• Expensive substitutes are available in the industry of Gravity Payments Minimum Wage is a Heavy Load, 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 Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load operates has highly differentiated products, making it difficult for companies to win each other customers.

• Gravity Payments Minimum Wage is a Heavy Load can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to have a high level of customer engagement (Rizaldi, 2015).

• Gravity Payments Minimum Wage is a Heavy Load has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Gravity Payments Minimum Wage is a Heavy Load has a strong brand image in the market.

• A low-cost structure of Gravity Payments Minimum Wage is a Heavy Load has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Gravity Payments Minimum Wage is a Heavy Load is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Gravity Payments Minimum Wage is a Heavy Load has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Gravity Payments Minimum Wage is a Heavy Load on its research and development is comparatively less to other competitors of the market.

• Gravity Payments Minimum Wage is a Heavy Load uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Gravity Payments Minimum Wage is a Heavy Load operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Gravity Payments Minimum Wage is a Heavy Load. 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, Gravity Payments Minimum Wage is a Heavy Load can take it as an opportunity to expand its online presence.

• Gravity Payments Minimum Wage is a Heavy Load can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Gravity Payments Minimum Wage is a Heavy Load can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Gravity Payments Minimum Wage is a Heavy Load to expand its operations in multiple countries.

• Gravity Payments Minimum Wage is a Heavy Load can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Gravity Payments Minimum Wage is a Heavy Load, 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 Gravity Payments Minimum Wage is a Heavy Load to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Gravity Payments Minimum Wage is a Heavy Load.

• There has been constant pressure on Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load.

VRIO Analysis

Gravity Payments Minimum Wage is a Heavy Load uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Gravity Payments Minimum Wage is a Heavy Load has a strong brand image and engages in corporate social responsibility.

• Gravity Payments Minimum Wage is a Heavy Load has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Gravity Payments Minimum Wage is a Heavy Load is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load has been able to penetrate the market through its ability to raise large funds.

Rare

• Gravity Payments Minimum Wage is a Heavy Load operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Gravity Payments Minimum Wage is a Heavy Load has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Gravity Payments Minimum Wage is a Heavy Load has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Gravity Payments Minimum Wage is a Heavy Load is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Gravity Payments Minimum Wage is a Heavy Load is its high-quality products. These products have allowed consumers to make repeat purchases.

• Gravity Payments Minimum Wage is a Heavy Load operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Gravity Payments Minimum Wage is a Heavy Load to attract more customers.

• Gravity Payments Minimum Wage is a Heavy Load has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Gravity Payments Minimum Wage is a Heavy Load maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Gravity Payments Minimum Wage is a Heavy Load to explore more product development opportunities.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Gravity Payments Minimum Wage is a Heavy Load to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Gravity Payments Minimum Wage is a Heavy Load to formulate effective strategies to achieve the company objectives.

Product

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to its customers. These distinctive products are not easily available at competitors.

• The products of Gravity Payments Minimum Wage is a Heavy Load are of higher quality, and thus, customers pay more prices for these products.

• Gravity Payments Minimum Wage is a Heavy Load designs products with traditional designs giving customers more product variety.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to its customers.

Price

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to its customers.

Place

• Gravity Payments Minimum Wage is a Heavy Load uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Gravity Payments Minimum Wage is a Heavy Load globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Gravity Payments Minimum Wage is a Heavy Load has partnered with delivery service companies to distribute its products effectively to consumers.

• Gravity Payments Minimum Wage is a Heavy Load has also adopted an omni-channel distribution system.

Promotion

• Gravity Payments Minimum Wage is a Heavy Load uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Gravity Payments Minimum Wage is a Heavy Load to increase brand awareness.

• Gravity Payments Minimum Wage is a Heavy Load 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.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to attract and retain customers.

Value Chain Analysis

Gravity Payments Minimum Wage is a Heavy Load can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Gravity Payments Minimum Wage is a Heavy Load’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Gravity Payments Minimum Wage is a Heavy Load has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Gravity Payments Minimum Wage is a Heavy Load 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, Gravity Payments Minimum Wage is a Heavy Load has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Gravity Payments Minimum Wage is a Heavy Load invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Gravity Payments Minimum Wage is a Heavy Load to effectively devise and build sales and marketing activities.

• Gravity Payments Minimum Wage is a Heavy Load offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Gravity Payments Minimum Wage is a Heavy Load uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Gravity Payments Minimum Wage is a Heavy Load can increase the capacity of its production so it can reach more of the customers in its existing market.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load in marketing and sales activities to increase the chances of successful market penetration.

• Gravity Payments Minimum Wage is a Heavy Load can design and develop a content that increases customer engagement within a particular marketplace.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to penetrate the market.

• Gravity Payments Minimum Wage is a Heavy Load can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to mitigate the risk factors, and to gain customer groups of the market.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load for growth purposes. This will also take into consideration the cultural differences.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load.

• Gravity Payments Minimum Wage is a Heavy Load should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Gravity Payments Minimum Wage is a Heavy Load 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

• Gravity Payments Minimum Wage is a Heavy Load can come up with new improvements and modifications in the existing products to attract the market.

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Gravity Payments Minimum Wage is a Heavy Load can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Gravity Payments Minimum Wage is a Heavy Load 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 Gravity Payments Minimum Wage is a Heavy Load, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Gravity Payments Minimum Wage is a Heavy Load can also consider to conglomerate by starting a different business.

Conclusion

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

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