Red Crowne Philippines, Developing a Startup Strategy

CENTRAL ISSUE

Retirees from a cola industry, Gerry Garaza, Ponso Tamahon and Bong Alegre came up with the idea of setting up a softdrink business. What factors will be considered to develop a strategy for the starting business?

CRITICAL FACTORS

Health Consciousness

The government and parents are branding soft drinks as junk food and is bad for the health. This poses a threat to the industry because prospect market will decrease in number or may chose an alternative drink.

Increasing Costs

There has been a gradual increase in the prices of raw materials, bottling equipment and delivery equipment for soft drinks. Unlike prospective competitors who had purchased their materials a long time ago at a much lower cost, they will have to buy at current inflation prices. This is a disadvantage to the group because their focus is in keeping their costs and prices down.

Economic Condition

The soft drink market is shrinking because of the present economic condition.