Organisational or industry analysis is the method of reviewing the macro and micro environment in which a business operates.The idea of situation analysis is to focus on the design and the structure of the organisation to understand the capacity or the functionality output of the organisation.As defined by Sacks et al., (2015) industry is the particular place where people are engaged in the manufacturing of a particular product.The aim of this presentation is to carry out a detailed situational analysis of the famous Nexba beverages.
Background of the company Nexba
The famous anti-sugar drink of Australia, Nexba, was founded by the Aussie Boys, Drew and Troy in 2010 with an objective of offering healthier beverages (Nexba.com, 2018).Being a major player in the fight against sugar, the mission of the company is to grow globally as a sugar free brand.In fact, considering the innovative approach towards their products, the sugar free drinks have also won Product of the Year in 2017 (Nexba.com, 2018).
Macro forces analysis
Considering the macro environment, the analysis based on the following segments can be done:
Australia has a stable economy that is supported by strong FDI inflows and it also shows a strong domestic demand.The country also has a stable relationship with China, UK, Japan and others who are the major exporters of raw materials (Sacks et al., 2015).
Considering strategic partnership with other countries, Australia lies at a verge of facing economic crisis in case of any disparity in other countries of Europe and Asia.Other economic factors including the inflation rate or exchange rate are also controllable and so, business in Australia always gains a competitive advantage (Kristina & Wijaya, 2017).
Considering the consumer preferences and the consciousness towards their health, people of Australia prefer to have drinks with lesser calories (Kristina & Wijaya, 2017).Consumers also prefer to try new products with new taste.
Better manufacturing and packaging techniques have enabled to produce such products that can be preserved for a longer time.Considering the promotional activities, the digital media has also provided better opportunities for the companies (Ridley, 2018).Legal factors:The industry regulations that focuses on the quality of products are definitely challenges for the food and beverage industries.
The primary customers of Nexba beverages are the people who are concerned about their health and prefer sugar free products (Ridley, 2018).The customer profile include both men and women The customers are not only limited to the young group of people but the school goers also fall under this category Considering the price of the product, customers find it comfortable to spend the amount to get a sip of sugar free beverage.Competitor analysis
There are many beverage producers in Australia that include soft drinks as well as hard drinks, but considering the unique concept of sugar free beverage, the products are much acceptable among the consumers.Major competitors include Coca Cola, that has been found to generate $38.5b more revenue than Nexba (Harris, 2016).PepsiCo, Dr Pepper Snapple, General Mills, P&G are other major existing competitors.
Other stakeholder analysis
Apart from the consumers, other stakeholders of the beverage company include:Partners: The partners of the company are the raw material suppliers and the distributors as well.Communities: Nexba has been found to engage with the teenagers and the school goers with an attempt to increase their engagement with the community (Harris, 2016) Suppliers: The suppliers of the beverage include the small and big shops along with the departmental stores Government and regulatory authorities: The company is also responsible for following the guidelines of the manufacturing process.
The unique concept of the beverage Consumers from all segments of the society
Limited market segment Availability of limited types of products
Availability of FDI for the expansion of the business Other types of drinks for various consumer segments
Major existing competitors
Threats of new entrantsProblem & Opportunity statement
Problems: The existing companies and the increasing threat of the new entrants are sure to create problems for Nexba beveragesThe changing preferences of the consumers and lack of innovative approaches can also become a problem for carrying out business in future.
Market expansion of the business is a major opportunity for the product.Developing new products on the basis of flavours, taste can be another opportunity to attract more people from different consumer segments (Kristina & Wijaya, 2017).
A detailed situation analysis of the Nexba beverages has been conducted Considering the macro environmental analysis, it can be said that all the factors are favourable enough for the company to operate in the market of Australia.There are existing competitors in the beverage industry in Australia, but considering the unique selling proposition of sugar free drink, the company has been able to dominate the market.
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