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Analysis and clock strategy, Study notes of Strategic Management

Technical University of Mining and Metallurgy OstravaStrategic Management

Mision, vision, analysis and clock strategy

Typology: Study notes

2023/2024

Uploaded on 12/05/2023

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CORE VALUES, MISION Y VISION
Core Values:
1. Sustainable Innovation: SodaStream is committed to providing innovative and sustainable solutions in
the carbonated beverage market.
2. Environmental Responsibility: The company provides an environmentally friendly alternative to plastic
bottles.
3. Quality and Customer Satisfaction: SodaStream emphasises the quality of its products and offers a
money-back guarantee.
4. Product Diversity and Customisation: Consumers can customize their drinks according to their
preferences.
Mission:
SodaStream's mission is to offer consumers a sustainable alternative to bottled carbonated beverages. The
company seeks to provide innovative solutions that meet consumer needs while promoting environmental
responsibility.
Vision:
SodaStream's vision could be to be recognised as a world leader in the production, distribution and
marketing of domestic carbonation systems. In addition, it seeks to excel in technological advances and in
the quality of its products.
PORTER'S 5 FORCES ANALYSIS
Porter's Five Forces is an analysis developed by Michael Porter that identifies the forces that influence the
competitiveness of an industry and, therefore, the profitability of companies. The analysis of the
SodaStream company is presented below:
1. Bargaining power of suppliers:
Moderate. SodaStream has control over its resources but is dependent on its suppliers for raw materials
such as CO2 for carbonators.
2. Bargaining power of buyers:
Moderate. Although consumers have other alternatives, customisation, savings and environmental concerns
may maintain interest in their products.
3. Threat of substitute products or services:
Moderate. There are products such as other carbonated or even non-carbonated beverages that may act as
substitutes, but SodaStream's focus on personalisation, sustainability and flavoured waters may reduce this
threat.
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CORE VALUES, MISION Y VISION

Core Values:

1. Sustainable Innovation: SodaStream is committed to providing innovative and sustainable solutions in the carbonated beverage market. 2. Environmental Responsibility: The company provides an environmentally friendly alternative to plastic bottles. 3. Quality and Customer Satisfaction: SodaStream emphasises the quality of its products and offers a money-back guarantee. 4. Product Diversity and Customisation: Consumers can customize their drinks according to their preferences. Mission: SodaStream's mission is to offer consumers a sustainable alternative to bottled carbonated beverages. The company seeks to provide innovative solutions that meet consumer needs while promoting environmental responsibility. Vision: SodaStream's vision could be to be recognised as a world leader in the production, distribution and marketing of domestic carbonation systems. In addition, it seeks to excel in technological advances and in the quality of its products. PORTER'S 5 FORCES ANALYSIS Porter's Five Forces is an analysis developed by Michael Porter that identifies the forces that influence the competitiveness of an industry and, therefore, the profitability of companies. The analysis of the SodaStream company is presented below: 1. Bargaining power of suppliers: Moderate. SodaStream has control over its resources but is dependent on its suppliers for raw materials such as CO2 for carbonators. 2. Bargaining power of buyers: Moderate. Although consumers have other alternatives, customisation, savings and environmental concerns may maintain interest in their products. 3. Threat of substitute products or services: Moderate. There are products such as other carbonated or even non-carbonated beverages that may act as substitutes, but SodaStream's focus on personalisation, sustainability and flavoured waters may reduce this threat.

4. Industry rivalry: High. Competitiveness is high due to the entry of new competitors. The company needs to position its brand and innovate to maintain its position in the market. 5. Barriers to market entry: Moderate. Market entry is still possible, especially for companies with technological innovations or effective marketing strategies. In summary, SodaStream operates in an industry with high competition, but the ability to adapt to consumer, competitive and market changes will be essential to its success. ANÁLISIS PEST PEST (Political, Economic, Social and Technological) analysis is a tool used to examine the external environment that may affect a company. 1. Political:

  • SodaStream operates in multiple countries, which means that its business is dependent on various jurisdictions.
  • The company has factories in Israel and the West Bank, which could cause geopolitical tensions. 2. Economical:
  • The economic performance of the countries in which it operates will impact on its ability to generate revenue, just as the purchasing power of consumers may affect demand for products.
  • Fluctuating exchange rates can influence production costs and prices. 3. Social:
  • The trend towards more sustainable lifestyles can be beneficial, due to its message of social responsibility and sustainability.
    • Consumer preferences for personalisation may be an opportunity. 4. Technological:
  • Technological innovation is essential in the carbonation and beverage industry.
  • The ability to stay current in technology and product design. In summary, SodaStream is affected by political, economic, social and technological factors in its business environment. The ability to adapt to change will determine its success. ANÁLISIS 7S The 7S model analyses several aspects of an organisation to assess its effectiveness. 1. Strategy: SodaStream's focuses on sustainability (a strategy that was unsuccessful in the US market) and social responsibility and offers a variety of products to meet consumer preferences.

● Support Activities:

1. Company Infrastructure: headquartered in Israel with a presence in several global locations. 2. Human Resource Management: 1950 employees and strategic recruitment of leaders such as Dan Birnbaum, former Nike executive. 3. Technological Development: the company is constantly innovating products and is focused on technological advances and product quality. 4. Acquisition: the hiring of experienced leaders such as Dan Birnbaum and strategic partnerships, such as with Yves Behar. In summary, SodaStream's value chain stands out for its focus on innovation, sustainability and product quality. However, it must remain alert to market changes in order not to lose its position. VRIO ANALYSIS VRIO analysis evaluates a company's resources and capabilities according to their value, rarity, imitability and organisation. 1. Value:

  • Patented Carbonation Machines: The technology of these machines add value by allowing consumers to carbonate water and flavour beverages at home, offering savings and convenience.
  • Wide Product Variety: Offering over 100 flavours means customisation and satisfies consumer tastes.
  • Focus on Sustainability: Sustainability appeals to environmentally conscious consumers. 2. Rareness:
  • Patented Technology and Unique Design: The collaboration with Yves Behar and the development of products such as SodaStream Source and the E-TERRA model can be considered rare in the industry.
  • Focus on Sustainability: Although more and more companies are focusing on sustainability, SodaStream's interest in reducing carbon footprint through domestic carbonation may be rare. 3. Imitability:
  • Patented Technology: Patented technologies may protect from direct imitation, but competitors may seek to develop alternatives.
  • Focus on Sustainability: Sustainability-based strategy may be imitable. 4. Organisation:
  • Culture of Innovation: Hiring leaders such as Dan Birnbaum and strategic partnerships with designers demonstrate a commitment to innovation and product development.
  • Global Manufacturing and Distribution Network: Presence in 22 manufacturing plants and distribution to 45 countries indicate a strong organisation to produce globally. SodaStream has resources and capabilities that offer competitive advantages, but must guard against imitation and competition to maintain its position. The ability to adapt to market changes and improve will be critical to its success.

STRATEGY CLOCK

The watch strategy identifies different generic strategies according to perceived value and price. Here is the interpretation for SodaStream. SodaStream's strategies are:

1. Hybrid (high value, low price). The company combines elements of differentiation (offering more than 100 flavours, high quality machines, sustainability) with a focus on reasonable costs for consumers. 2. Differentiation (high value, high price) The company offers unique and sustainable products, as well as a wide range of flavours and customisation options. 3. Focused Differentiation (high value, high price) SodaStream focuses on specific markets and environmentally conscious consumers, offering an alternative to traditional carbonated beverages. 4. Strategy destined for ultimate failure (low value, high price) The Super Bowl sustainability marketing strategy could be considered a failure because US sales declined.