I have used various types of products and services in the past 24 hours. The first product is energy. I use electricity to heat at home and gasoline to power my car every morning. The second product is a cup of coffee with some sugar. I often start my day with this product. It is important to note that I use the first product (electricity) to prepare the second product (coffee). The third product is based on nutrition; grains. The main product is bread . My life would be meaningless without my mobile phone . I must say that I am obsessed with my phone. The fifth product comprises of personal care products such as fragrances, cosmetics, hair care, shower and bath products.
The companies use different strategies to sell the five products above. Duke Energy Corporation is the company supplying me with electricity. Though the strategies used by this company are constantly evolving, its current strategy revolves around mergers and acquisitions. For instance, last year, the company merged with Progress Energy, a move that made it becomes the largest power utility firm in the United States. Besides, this move enabled them to reap other benefits such as increased generating capacity, better access to financial markets, lower fuel costs; it became the largest player in the utility business and achieved scale economies (Hopkins, 2017).
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Hostess Brands is a fast-growing producer of ready-to-serve sandwiches and pita bread. These two are my favorite, especially in the morning. The success of this company is based on its strategic packaging approach. They have adopted an automated packaging system that offers the ability to change carton sizes efficiently. The leadership reports that this automation approach has been performing above their expectations. Therefore, it is an effective strategy to meet the demands of the fast-changing production environment.
As far my care products, the Johnson and Johnson is the company of choice. Beauty and personal care are part of my time-to-time routine when I am at home and on the go. This company uses a three-pronged price oriented strategy. They include the premium pricing, product bundle pricing, and market-oriented pricing strategies (Schoonveld, 2016).
I am currently using iPhone 8 by Apple. This company relies on a hybrid strategy that combines market research, unparalleled execution, and intensive innovation. Its uniqueness has played a role in my ‘sticking’ to Apple Products. I am a huge fan of Starbucks Coffee. This company uses the differentiation strategy to remain relevant and beat its competitors in the industry.
Interestingly, the five companies appear to be using a similar approach to deliver their products to the international markets. All of them have created subsidiaries and operating companies in various destinations globally. Therefore, Duke Energy Corporation, Hostess Brands, Johnson and Johnson, Apple, and Starbucks Coffee are serving as parent companies based in their respective countries of origin while they have several subsidiaries in separate countries. This mode of delivering products to the international markets permits greater diversification and efficiencies. Probably, the top leadership at the companies has limited interference with how the subsidiaries operate. Moreover, this approach reduces or mitigates risks because the parent companies and the subsidiaries are entirely separate legal entities. Therefore, losses incurred by the subsidiaries do not transfer to the parent companies. However, in case of bankruptcy, the obligations of the subsidiaries may be assigned to the parent companies if it the parent company owns the subsidiary.
However, this approach to delivering products to the international markets has some significant drawbacks. Duke Energy Corporation, Hostess Brands, Johnson and Johnson , Samsung, and Starbucks Coffee are serving as parent companies based in their respective countries of origin. As such, they do not have total access to the cash flows of their subsidiaries. In addition, to maintain their reputation and image, these parent companies will have to settle the debts of the subsidiaries despite the fact that they are not legally obliged.
References
Hopkins, R. A. (2017). Grow your global markets: A handbook for successful market entry. New York, NY: Apress
Schoonveld, E. (2016). The price of global health: drug pricing strategies to balance patient access and the funding of innovation . New York, NY: Routledge.
