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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 thatyear. 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 duringthat 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 theywill produce standardized product at a very low cost or units for customer who areprice sensitive. They can either use type 1 or type 2 strategies. For the type 1strategy they will offer their product to a large market size but still at the lowest pricein the market. For the type 2 they will offer the product to the large market size at thelowest price available compared to their rival product. This was to underpricedcompetitors price and offer a better value.Next is differentiation. This is mean they will produce a unit product for customer thatwas different from the market. This strategy can be use either in small market orlarge market. The firm can charge higher price but they still able to gain customerloyalty because of the unit feature. Examples of product that they can produce ismineral water for sport peoples. This strategy can be effective if there are only fewcompetitors.3.In your opinion, state two (2) future challenges of bottled water business inMalaysia.
In my opinion the future challenges of bottled water business in Malaysia is waterpollution. This is since mineral water is sourced underground and is a product ofnatural rain water after years of being filtered through layers of the earth andabsorbing the various minerals on the way. If there are water pollution the watersources will be decreasing and will affect their production.Next challenges is weather. This is since the sources or water was come from theearth if there is drought season they will cause the water level keep on decreasing. Ifthe water level was decreasing the company will lose their sources of water. 4.Define market share and suggest two marketing efforts to boost Spritzerbottled water sales.Market share is the percentage of an industry or market’s total sales that is earned bya particular company over a specified time period. Market share is calculated bytaking the company’s sales over the period and dividing by the total sale.