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Wang's CASE STUDY Q2

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132 views3 pages

Wang's CASE STUDY Q2

Uploaded by

petersdarell
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Wang CASE analysis Q2

Wang’s Internal Analysis include:

Strengths:

Product Quality and Unique Selling Proposition (USP):

Zentein produces a unique, high-quality protein bar that uses natural


ingredients like collagen, which appeals to health-conscious consumers. This
USP differentiates Zentein from competitors in the nutrition bar market.

Differentiated product:
Zentein protein bars were produced to order which reduced waste and
allowed it to deliver the freshest possible products to customers.

Direct-to-Consumer (DTC) Model:


Selling directly via Zentein.ca allows the company to control the customer
experience, gather direct consumer insights, and build a loyal customer
base. This model is particularly advantageous for engaging with repeat
customers and maintaining high reorder rates.

Weaknesses
Resource Constraints:
- As a small, growing company, Zentein has limited resources in terms of
finances, workforce, and logistical support. This constraint poses challenges
to scaling effectively and sustaining growth in the long term.

Challenges with Fulfillment and Distribution:


- Although Zentein uses Amazon.ca to reach a larger audience, issues with
Amazon’s fulfillment (e.g., poor handling of products) may hurt the brand
image. Internal capabilities in coordination and quality control might need
reinforcement to expand across distribution channels while retaining quality.
External Environment: Opportunities and Threats (PESTLE)

Regulatory Considerations: Health and safety regulations around food


products, labeling, and quality control are stringent. Any regulatory lapses
could harm the brand's reputation and create legal issues.
Opportunities:
- Growing Health and Wellness Market: Rising awareness of health and
wellness creates a larger market for Zentein’s natural protein bars.
Consumers are increasingly looking for nutritious, clean-label snacks.

- Digital Sales Channels: The growth of e-commerce, especially post-


pandemic, has made online channels a lucrative option, potentially reducing
reliance on traditional retail.

- Retail Expansion Potential: Partnering with more local retailers (like Forest
City Microgreens) provides an opportunity to enhance brand presence and
reach new customer segments.

Threats:
- Intense Competition: The protein bar market is competitive, with brands like
RXBAR, Quest, and KIND dominating shelf space in retail stores. These
brands have more resources, established distribution networks, and greater
brand recognition.
Smaller Local Brands: Local brands might offer similar product values (e.g.,
natural ingredients, collagen) and appeal to regional customers with a focus
on local sourcing.

- Economic Factors: Rising costs of ingredients and potential changes in


consumer spending patterns due to economic downturns could impact
profitability and demand for premium-priced products.

Barriers to Success

1. Financial and Resource Constraints: Zentein’s limited resources may


inhibit its ability to scale rapidly, which could limit its competitiveness in a
market dominated by well-funded companies with more advanced planning
and marketing.
2. Complexity of Multi-Channel Distribution:
- Managing distribution across both e-commerce platforms and retail stores
requires robust planning and inventory management. Zentein may face
challenges in fulfilling demand while ensuring quality and minimizing costs.

3. Dependence on Third party distribution: complaints about Amazon’s


handling of products, Zentein risks damaging its brand reputation. Investing
in alternatives like outsourcing fulfillment to a reliable partner or enhancing
direct-to-consumer coordination may be needed.

In conclusion, Zentein has valuable internal capabilities, including a strong


brand image, product differentiation, and a loyal customer base. However,
financial, and logistical constraints present significant challenges. The
external environment presents both opportunities, such as the growing
health-conscious market, and threats from intense competition and economic
pressures.

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