Question
Company Background The startup household cleaner company produces safe, environmentally sustainable, certified cleaning tablets that are highly efficacious by easily making the own cleaner using
Company Background
The startup household cleaner company produces safe, environmentally sustainable, certified cleaning tablets that are highly efficacious by easily making the own cleaner using plain tap water with those tablets and the same bottle over and over again. With refills, and your own tap water, it costs up to 75% less than traditional cleaners and also outperforms the leading brands. They have accomplished a lot with old American ingenuity and have never been tested on animals. The company has already built a new production facility with high-speed blending, tableting, and packaging equipment, and they have a production capability of up to approx. 80,000 tablets per hour, they also had a new website, new marketing collateral with a strong team, and expanded the brand by introducing new foaming hand soap. Their year over year sale increases to 472%. The company is forecasting the following plans for coming year:
Upcoming appearance on America's Big Deal to negotiate a national retail contract
Expanding their retail distribution with active conversations with over 100 retailers
Planning to launch new products very soon
International Distribution in place, adding new countries every quarter
Facility and team expansion to meet the needs of their journey to $50M in sales by 2025
Questions
What kind of trade-offs is the company making? If so, is the company making the kind of "trade-offs" that lead to a sustainable competitive advantage, and why? Does the company incorporate activities in a way that creates "fit" that lead to competitive advantage and sustainability? Why or why not? Is this activity "fit" hard to replicate? Based on the assumptions from above, would you recommend that the investors invest in the company? Why or why not? Please also use the strategy ideas of Michael Porter summary for the explanation, if possible. Thank you.
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