Anvac does not have a sustainable business strategy as they lack a unique product or a mode of operation which distinguishes it from other companies. The company has been relying on the marketing of old and outdated products from other firms as its business strategy. First, Anvac might fail to create a niche that identifies it from other markets. Therefore, the company cannot have a market that is impenetrable by other players thus relying on discarded niches as its new market. Secondly, Anvac is likely to suffer from misfortunes that befell other firms’ products. For instance, other companies discarded certain pesticides due to the effects they had on human health. Therefore, Anvic's decision to continue producing such commodities might lead to the creation of negative perceptions by customers leading to dwindling sales.
The law should prohibit Anvac from producing pesticides banned in the United States for various reasons. First, the company can contribute to the spread of effects those pesticides have on human life. This action can lead to poor perception people might have of American brands thus contributing to reduced sales. Therefore, the government should prohibit Anvac from exporting banned pesticides to prevent tarnishing other brands in the international market. Secondly, allowing Anvac to continue exporting banned pesticides to other countries will make the company gain an undue advantage over other firms which can make some of them engage in unethical practices like manufacturing harmful products (Adobor, 2019) . Lastly, there are various reasons which might encourage one not to buy Amvac’s stocks despite the market condition remaining favorable to the company’s strategy. First, the firm lacks a unique product that can give it a market advantage. Anvac relies on tried and tested products thus not likely to hold its competitiveness for long. Secondly, the firm faces future litigation from selling banned pesticides which could drive its stock prices down.
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References
Adobor, H. (2019). Opening up strategy formulation: Benefits, risks, and some suggestions. Business Horizons , 62 (3), 383-393. https://doi.org/10.1016/j.bushor.2019.01.005
