ROSA S PALAS FRANCHISE Case Solution

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

Political

• A stable political environment provides a favorable market growth trend for ROSA S PALAS FRANCHISE.

• It is important for ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE by impacting imports and exports.

Economic

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide ROSA S PALAS FRANCHISE with more investment opportunities.

• The flexibility in the labor market allows ROSA S PALAS FRANCHISE to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed ROSA S PALAS FRANCHISE to select the right segments of the market that have high growth potential.

• The research on gender roles has helped ROSA S PALAS FRANCHISE to develop and align communication as well as marketing strategies accordingly.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE 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).

• ROSA S PALAS FRANCHISE should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for ROSA S PALAS FRANCHISE to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• ROSA S PALAS FRANCHISE should adopt eco-friendly products to establish better relationships with the stakeholders.

• ROSA S PALAS FRANCHISE can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• ROSA S PALAS FRANCHISE should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for ROSA S PALAS FRANCHISE as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE’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 ROSA S PALAS FRANCHISE.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE 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.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by ROSA S PALAS FRANCHISE. The company can also switch suppliers for more reasonable pricing.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE industry is weak.

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

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which ROSA S PALAS FRANCHISE operates.

• Expensive substitutes are available in the industry of ROSA S PALAS FRANCHISE, 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 ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE operates has highly differentiated products, making it difficult for companies to win each other customers.

• ROSA S PALAS FRANCHISE can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to have a high level of customer engagement (Rizaldi, 2015).

• ROSA S PALAS FRANCHISE has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• ROSA S PALAS FRANCHISE has a strong brand image in the market.

• A low-cost structure of ROSA S PALAS FRANCHISE has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of ROSA S PALAS FRANCHISE is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• ROSA S PALAS FRANCHISE has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of ROSA S PALAS FRANCHISE on its research and development is comparatively less to other competitors of the market.

• ROSA S PALAS FRANCHISE uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because ROSA S PALAS FRANCHISE operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in ROSA S PALAS FRANCHISE. 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, ROSA S PALAS FRANCHISE can take it as an opportunity to expand its online presence.

• ROSA S PALAS FRANCHISE can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, ROSA S PALAS FRANCHISE can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to ROSA S PALAS FRANCHISE to expand its operations in multiple countries.

• ROSA S PALAS FRANCHISE can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, ROSA S PALAS FRANCHISE, 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 ROSA S PALAS FRANCHISE to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to ROSA S PALAS FRANCHISE.

• There has been constant pressure on ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE.

VRIO Analysis

ROSA S PALAS FRANCHISE uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• ROSA S PALAS FRANCHISE has a strong brand image and engages in corporate social responsibility.

• ROSA S PALAS FRANCHISE has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of ROSA S PALAS FRANCHISE is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE has been able to penetrate the market through its ability to raise large funds.

Rare

• ROSA S PALAS FRANCHISE operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• ROSA S PALAS FRANCHISE has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since ROSA S PALAS FRANCHISE has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of ROSA S PALAS FRANCHISE is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for ROSA S PALAS FRANCHISE is its high-quality products. These products have allowed consumers to make repeat purchases.

• ROSA S PALAS FRANCHISE operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by ROSA S PALAS FRANCHISE to attract more customers.

• ROSA S PALAS FRANCHISE has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• ROSA S PALAS FRANCHISE maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed ROSA S PALAS FRANCHISE to explore more product development opportunities.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled ROSA S PALAS FRANCHISE to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by ROSA S PALAS FRANCHISE to formulate effective strategies to achieve the company objectives.

Product

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to its customers. These distinctive products are not easily available at competitors.

• The products of ROSA S PALAS FRANCHISE are of higher quality, and thus, customers pay more prices for these products.

• ROSA S PALAS FRANCHISE designs products with traditional designs giving customers more product variety.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to its customers.

Price

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to its customers.

Place

• ROSA S PALAS FRANCHISE uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by ROSA S PALAS FRANCHISE globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• ROSA S PALAS FRANCHISE has partnered with delivery service companies to distribute its products effectively to consumers.

• ROSA S PALAS FRANCHISE has also adopted an omni-channel distribution system.

Promotion

• ROSA S PALAS FRANCHISE uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by ROSA S PALAS FRANCHISE to increase brand awareness.

• ROSA S PALAS FRANCHISE 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.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to attract and retain customers.

Value Chain Analysis

ROSA S PALAS FRANCHISE can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• ROSA S PALAS FRANCHISE’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• ROSA S PALAS FRANCHISE has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of ROSA S PALAS FRANCHISE 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, ROSA S PALAS FRANCHISE has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• ROSA S PALAS FRANCHISE invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by ROSA S PALAS FRANCHISE to effectively devise and build sales and marketing activities.

• ROSA S PALAS FRANCHISE offers both pre-sale and post-sales services to its customers.

Secondary Activities

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• ROSA S PALAS FRANCHISE uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• ROSA S PALAS FRANCHISE can increase the capacity of its production so it can reach more of the customers in its existing market.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE in marketing and sales activities to increase the chances of successful market penetration.

• ROSA S PALAS FRANCHISE can design and develop a content that increases customer engagement within a particular marketplace.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to penetrate the market.

• ROSA S PALAS FRANCHISE can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to mitigate the risk factors, and to gain customer groups of the market.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE for growth purposes. This will also take into consideration the cultural differences.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE.

• ROSA S PALAS FRANCHISE should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• ROSA S PALAS FRANCHISE 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

• ROSA S PALAS FRANCHISE can come up with new improvements and modifications in the existing products to attract the market.

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• ROSA S PALAS FRANCHISE can develop new products by getting into more strategic partnerships.

Diversification Strategies

• ROSA S PALAS FRANCHISE 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 ROSA S PALAS FRANCHISE, where the company can enter into a completely new product development phase that does not exist in the current product line.

• ROSA S PALAS FRANCHISE can also consider to conglomerate by starting a different business.

Conclusion

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

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