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The company started as a sales department producing children’s liquid nutrient and shifted to alcoholic beverages. According to its business plan to make money, the Wahaha Company decided to acquire as many companies around as possible. The Wahaha Company released many products under different brand names. Products included milk drinks, soft drinks, bottled water, tea, juice, and yogurt beverages.The Wahaha Company creates value by offering items through distributors, which has been key to the beverage organization’s success. This distribution system includes over 10,000 wholesalers and retailers across China. The organization captures value by offering various new products such as nutritional products that contribute billions of dollars to the company’s revenue.After its merger with Danone in the early 1990s, the Wahaha Company acquired over 40 companies becoming the largest beverage company in China. Forbes magazine labeled the organization as a “showcase” joint venture. This acquisitions turn out to represent a vital strategy; this way, the company called Wahaha has separated from its partner Danone, with whom a joint venture had not turn out successful (Ionescu & Dumitru, 2012).Business model innovation is important to the future success of the organization. Organizations must stay cognizant of the external environment in which it operates. The business
GROUP CASE STUDY 1 7model of the Wahaha Company has changed since its incorporation. Therefore, work should be done to ensure the longevity of the organization. The organization should look into e-commerce and delivery services in order to advance its business model.SWOT Analysis, IFE Matrix, EFE Matrix, & SWOT Bivariate Strategy MixThe following matrixes can be found in the corresponding appendices:SWOT Analysis – Appendix AIFE Matrix – Appendix BEFE Matrix – Appendix CSWOT Bivariate Strategy Mix – Appendix DBCG MatrixThe BCG Matrix can be found in Appendix ECompetitive Forces and Competitive Profile MatrixCompetitive Forces. The Competitive Forces Matrix (CFM) (See Appendix F) shows the different areas that would need to be considered when developing strategies for Wahaha going forward. While there are several companies that are competing in the overall beverage market, including large companies like Danone, Nestle’, and Robust, it is clear that the main direct competition comes from Coca-Cola and Pepsico. While these larger two competitors that dominate the soft drink market are starting to see their numbers flatten out in recent years, they still hold a tight grip on the largest part of the market. Attempts by the other competitors listed have not gained any traction into the beverage market with many of them trying to bring a different product line into the mix leaving some of these with a loss.