Euro Zone Convergence Divergence and Then What Case Solution

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

Political

• A stable political environment provides a favorable market growth trend for Euro Zone Convergence Divergence and Then What.

• It is important for Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What by impacting imports and exports.

Economic

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Euro Zone Convergence Divergence and Then What with more investment opportunities.

• The flexibility in the labor market allows Euro Zone Convergence Divergence and Then What to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Euro Zone Convergence Divergence and Then What to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Euro Zone Convergence Divergence and Then What to develop and align communication as well as marketing strategies accordingly.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What 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).

• Euro Zone Convergence Divergence and Then What should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Euro Zone Convergence Divergence and Then What to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Euro Zone Convergence Divergence and Then What should adopt eco-friendly products to establish better relationships with the stakeholders.

• Euro Zone Convergence Divergence and Then What can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Euro Zone Convergence Divergence and Then What should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Euro Zone Convergence Divergence and Then What as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What’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 Euro Zone Convergence Divergence and Then What.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What 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.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Euro Zone Convergence Divergence and Then What. The company can also switch suppliers for more reasonable pricing.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What industry is weak.

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

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Euro Zone Convergence Divergence and Then What operates.

• Expensive substitutes are available in the industry of Euro Zone Convergence Divergence and Then What, 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 Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What operates has highly differentiated products, making it difficult for companies to win each other customers.

• Euro Zone Convergence Divergence and Then What can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to have a high level of customer engagement (Rizaldi, 2015).

• Euro Zone Convergence Divergence and Then What has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Euro Zone Convergence Divergence and Then What has a strong brand image in the market.

• A low-cost structure of Euro Zone Convergence Divergence and Then What has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Euro Zone Convergence Divergence and Then What is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Euro Zone Convergence Divergence and Then What has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Euro Zone Convergence Divergence and Then What on its research and development is comparatively less to other competitors of the market.

• Euro Zone Convergence Divergence and Then What uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Euro Zone Convergence Divergence and Then What operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Euro Zone Convergence Divergence and Then What. 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, Euro Zone Convergence Divergence and Then What can take it as an opportunity to expand its online presence.

• Euro Zone Convergence Divergence and Then What can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Euro Zone Convergence Divergence and Then What can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Euro Zone Convergence Divergence and Then What to expand its operations in multiple countries.

• Euro Zone Convergence Divergence and Then What can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Euro Zone Convergence Divergence and Then What, 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 Euro Zone Convergence Divergence and Then What to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Euro Zone Convergence Divergence and Then What.

• There has been constant pressure on Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What.

VRIO Analysis

Euro Zone Convergence Divergence and Then What uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Euro Zone Convergence Divergence and Then What has a strong brand image and engages in corporate social responsibility.

• Euro Zone Convergence Divergence and Then What has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Euro Zone Convergence Divergence and Then What is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What has been able to penetrate the market through its ability to raise large funds.

Rare

• Euro Zone Convergence Divergence and Then What operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Euro Zone Convergence Divergence and Then What has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Euro Zone Convergence Divergence and Then What has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Euro Zone Convergence Divergence and Then What is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Euro Zone Convergence Divergence and Then What is its high-quality products. These products have allowed consumers to make repeat purchases.

• Euro Zone Convergence Divergence and Then What operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Euro Zone Convergence Divergence and Then What to attract more customers.

• Euro Zone Convergence Divergence and Then What has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Euro Zone Convergence Divergence and Then What maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Euro Zone Convergence Divergence and Then What to explore more product development opportunities.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Euro Zone Convergence Divergence and Then What to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Euro Zone Convergence Divergence and Then What to formulate effective strategies to achieve the company objectives.

Product

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to its customers. These distinctive products are not easily available at competitors.

• The products of Euro Zone Convergence Divergence and Then What are of higher quality, and thus, customers pay more prices for these products.

• Euro Zone Convergence Divergence and Then What designs products with traditional designs giving customers more product variety.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to its customers.

Price

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to its customers.

Place

• Euro Zone Convergence Divergence and Then What uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Euro Zone Convergence Divergence and Then What globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Euro Zone Convergence Divergence and Then What has partnered with delivery service companies to distribute its products effectively to consumers.

• Euro Zone Convergence Divergence and Then What has also adopted an omni-channel distribution system.

Promotion

• Euro Zone Convergence Divergence and Then What uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Euro Zone Convergence Divergence and Then What to increase brand awareness.

• Euro Zone Convergence Divergence and Then What 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.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to attract and retain customers.

Value Chain Analysis

Euro Zone Convergence Divergence and Then What can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Euro Zone Convergence Divergence and Then What’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Euro Zone Convergence Divergence and Then What has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Euro Zone Convergence Divergence and Then What 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, Euro Zone Convergence Divergence and Then What has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Euro Zone Convergence Divergence and Then What invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Euro Zone Convergence Divergence and Then What to effectively devise and build sales and marketing activities.

• Euro Zone Convergence Divergence and Then What offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Euro Zone Convergence Divergence and Then What uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Euro Zone Convergence Divergence and Then What can increase the capacity of its production so it can reach more of the customers in its existing market.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What in marketing and sales activities to increase the chances of successful market penetration.

• Euro Zone Convergence Divergence and Then What can design and develop a content that increases customer engagement within a particular marketplace.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to penetrate the market.

• Euro Zone Convergence Divergence and Then What can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to mitigate the risk factors, and to gain customer groups of the market.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What for growth purposes. This will also take into consideration the cultural differences.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What.

• Euro Zone Convergence Divergence and Then What should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Euro Zone Convergence Divergence and Then What 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

• Euro Zone Convergence Divergence and Then What can come up with new improvements and modifications in the existing products to attract the market.

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Euro Zone Convergence Divergence and Then What can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Euro Zone Convergence Divergence and Then What 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 Euro Zone Convergence Divergence and Then What, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Euro Zone Convergence Divergence and Then What can also consider to conglomerate by starting a different business.

Conclusion

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

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