8. WHICH OPTION TO CHOOSE?
• Divide this analysis into 2 steps:
1) Qualitative Analysis
2) Financial Analysis
OPTION 3 IS THE MOST FEASIBLE OPTION. WE WILL FIGURE OUT WHY
OPTION 3 IS THE MOST FEASIBLE ONE BOTH BY QUALITATIVE AND
FINANCIAL ANALYSIS.
9. QUALITATIVE ANALYSIS
• Strong relationships
• Perfect positioning
• Attractive financial potential
• Natural food channel is growing 7 times faster than supermarkets Option 3
• Competitive advantage – Strong relationship with natural foods retailers ex: Whole Foods and
Wild Oats. – Sustainable competitive advantage – Main profit comes from natural foods channel.
• Power and conflict – If stays with natural foods stores, there will be no conflict. – Option 1 and 2
could potentially create conflict between the firm and natural foods channel. “…you can’t lose sight
of what has made this company great.” –Barry Landers (CEO)
• Brand Image – Organic yogurt – Shoppers at natural foods stores earn more income, more
educated and not price sensitive. – Natural foods store shoppers are more concern on health issue,
not price. – If expand to supermarket, its brand image will be doubted by current consumers.