Case Scenario:
Choose one of the businesses listed below and evaluate its chances for success. What research supports your conclusion? Be sure to cite your sources using APA format.
Are there any conceptual alterations (e.g., market positioning, niche targeting) that could make the business (more) successful?
An organic juicing company with retail stores and is also the manufacturer and distribution company in San Antonio, Texas.
Please answer the two individuals below with atleast 200 words.
I believe that an organic juicing company would be quite successful in San Antonio. I see more and more people every year going organic along with grass fed, free trade, and cage free. It seems as though the united states is shifting back away from the more processed the better approach we have become accustomed to over the years. According to a paper published by the Organic Trade Association, the organic market is the fastest growing sector of the food industry in the United States. The growth rate of the organic industry continues to outpace the ability to produce organic food. This market trend has resulted in the growth of the organic farming industry as well.(Jaenicke 2016)
Not only has the organic industry grown, the Juice industry is also a very popular trend. With drinks being sold everywhere for staggering prices ranging from 7 - 14 dollars. The L.A. Times reported that the cold press juice market is estimated at $100 million dollars a year. Ibisworld in a market research report showed the market revenue as 2 billion dollars with a growth rate of 2.9% between the years of 2010 and 2015.(Ibisworld 2015)
The market research shows that the organic trade industry is continually increasing every year. The juicing industry is much smaller but there is still substantial reason to believe there will continue to be a juicing industry for the near future. The vertical integration of the business will keep them in a much better position than most other juicing companies as well. Owning their own manufacturing plants alongside their own distribution channels allows them to bring in more business from less integrated companies. This also allows them to cut costs to the minimum amount possible and increase profits or keep prices low to quickly gain a bigger market share.
References:
Jaenicke, E. (2016). Hot Spot White Paper. Retrieved September 14, 2016, from https://ota.com/sites/default/files/indexed_files/OTA-HotSpotsWhitePaper-OnlineVersion.pdf
Juice & Smoothie Bars in the US: Market Research Report. (2015, May). Retrieved September 14, 2016, from https://www.ibisworld.com/industry/juice-smoothie-bars.html
MacVean, M. (2015, January 29). Juicing trend still going strong in 2015. Retrieved September 14, 2016, from https://www.latimes.com/health/la-he-juice-20150131-story.html
I believe that a Major League Soccer franchise would have a good chance at being successful in the Miami area.
First of all, according to topendsports.com soccer is the most popular sport in the world and the fifth most popular sport in the United States behind the other major sports of football, baseball, basketball and ice hockey according to sportyghost.com. Second, the Miami area is already hosting and supporting other major sports franchises in all of the other major sports according to miamiandbeaches.com. One thing that would have to be considered prior to making this move into the area would be the other professional soccer teams that are already in operation in the community. Miami has three other major soccer teams playing in the area already. They have one team in the North American Soccer League (NASL) and two teams in the National Premiere Soccer League (NPSL). These factors prove that the community has the fan base to support major professional teams and would definitely be able to handle another.
One thing that would give this venture a better chance at success is the building of a dedicated stadium for use by the team when they come to town. The two NPSL teams in the area Re playing games at parks and the NASL team is playing games on the field of Florida International university (FIU).
The community of Miami is very able to support professional sports teams and has the capacity to bring another into the mix. This would almost undoubtedly be a major success for the community and for Major League Soccer.