Case Study sm - Case Study(Spritzer 1 Explain four(4 reasons why Yee Lee Corp regarded acquiring additional stake in Spritzer Bhd as its best move

Case Study sm - Case Study(Spritzer 1 Explain four(4...

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Case Study (Spritzer) 1. Explain four (4) reasons why Yee Lee Corp regarded acquiring additional stake in Spritzer Bhd as its best move. Justify your answers. Spritzer Bhs has strong company growth. They are able to achieve their target in that year. That was showing that they have faith in their company and product. They are think that the company will keep increasing their growth until they are satisfied. The number of demand is keep increasing. Because of that they need to increase their production. By increasing the production they are also increasing the cost during that process. They need to fasten up their production to meet their demand so they will increase the cost of labour and cost of raw material. 2. Discuss two (2) generic or competitive strategies that you would recommend Spritzer Bhd.Justify your answers. Spritzer Bhd. Can use cost leadership strategy. Cost leadership strategy mean they will produce standardized product at a very low cost or units for customer who are price sensitive. They can either use type 1 or type 2 strategies. For the type 1 strategy they will offer their product to a large market size but still at the lowest price in the market. For the type 2 they will offer the product to the large market size at the lowest price available compared to their rival product. This was to underpriced competitors price and offer a better value. Next is differentiation. This is mean they will produce a unit product for customer that was different from the market. This strategy can be use either in small market or large market. The firm can charge higher price but they still able to gain customer loyalty because of the unit feature. Examples of product that they can produce is mineral water for sport peoples. This strategy can be effective if there are only few competitors. 3. In your opinion, state two (2) future challenges of bottled water business in Malaysia.
In my opinion the future challenges of bottled water business in Malaysia is water pollution. This is since mineral water is sourced underground and is a product of natural rain water after years of being filtered through layers of the earth and absorbing the various minerals on the way. If there are water pollution the water sources will be decreasing and will affect their production. Next challenges is weather. This is since the sources or water was come from the earth if there is drought season they will cause the water level keep on decreasing. If the water level was decreasing the company will lose their sources of water. 4. Define market share and suggest two marketing efforts to boost Spritzer bottled water sales. Market share is the percentage of an industry or market’s total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company’s sales over the period and dividing by the total sale.

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