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INTRODUCTION OF Neat and Clean Solutions The Growth Challenge CASE

SOLUTION

The Harvard business review has published the Neat and Clean Solutions The Growth
Challenge Case Study. Like all HBR case studies, the Neat and Clean Solutions The Growth
Challenge Case is designed and drafted in a manner to allow the reader to experience a real-
world problem and solve it accordingly. The case study, like other HBR case studies, will
help the reader and students develop a broader, and a clearer understanding of the business
world and dynamics.

The Neat and Clean Solutions The Growth Challenge Case is based on a current managerial
and strategic problem being faced by the organization, which must be solved tactfully to
allow progression, as well as maintain a competitive position. This paper is written to
facilitate the case solution for the Neat and Clean Solutions The Growth Challenge Case
Study.

The case solution for the Neat and Clean Solutions The Growth Challenge Case Study first
identifies the central issue that is elaborated on throughout the case. The case solution then
analyses the case through relevant strategic models and tools including the SWOT Analysis,
Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG
Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. This analysis is to
help in the identification of a feasible strategy and solution for the Neat and Clean Solutions
The Growth Challenge Case Study. Alternative solutions are also proposed in the case
solution, primarily because alternative solutions often act as contingency plans.

2. PROBLEM IDENTIFICATION

2.1. Harvard business school case studies

All case studies published by the Harvard business review comprise of a central problem that
is faced by the protagonist. This problem mostly holds implications for managerial and
strategic directions of the company. For readers and students of HBR case studies, it is
critical to identify the problem that the Neat and Clean Solutions The Growth Challenge
faces. This problem is usually hinted towards in the introduction of the case and develops
along the way.

2.2. Solving HBS case studies

As a result, for solving the Neat and Clean Solutions The Growth Challenge case, it is
essential to read the case study thoroughly. The identification of the problem correctly is vital
for undergoing the analysis rightly, and for developing relevant solutions for the Neat and
Clean Solutions The Growth Challenge Case Study. It is also essential to identify all the
appropriate parties that are being impacted by the problem as well as the decision. The
correct problem identification will ensure that all the solutions developed during the case
analysis of the Neat and Clean Solutions The Growth Challenge Case Study are applicable
and pragmatic.

3.2. Porter’s five forces

  The five forces identified in Porter's model can effect Neat and Clean Solutions The
Growth Challenge ’s ability to serve its clients and make a profit.
 A change in any of the five forces may regularly require a business unit from Neat
and Clean Solutions The Growth Challenge to reassess the market place given the
general change in industry data and dynamics. The general industry appeal and
attractiveness.
 Neat and Clean Solutions The Growth Challenge should apply and centre their skills,
plan of action or business models to accomplish profits above the business average.
This may be done in multiple ways, each distinguished in their application to the
forces individually as is elaborated below:

3.2.1. The threat of new entrants

3.2.1.1. Market and industry share

 New entrants to an industry bring new potential and a choice to increase the market
share and overall share of the pie that puts pressure on price, costs, and the investment
price essential to compete.
 For Neat and Clean Solutions The Growth Challenge, particularly while new entrants
are diversifying from different markets into the chief industry, they will be able to
leverage existing talents and cash flows to shake up the opposition.

3.2.1.2. Limitation on earning expectation and capability of firms in an industry

 The threat of entry in the industry, consequently, puts a cap at the earning capacity
and profit capability for Neat and Clean Solutions The Growth Challenge.
 While the threat of new entreaty is high, Neat and Clean Solutions The Growth
Challenge should maintain their prices or increase funding and investment to
discourage new competition.

3.2.1.3. The risk to new entrants because of high entry barriers

 The risk of entry in an industry depends upon on the peak of entry barriers and
limitations that are a blessing for players such as Neat and Clean Solutions The
Growth Challenge and on the response that new entrants can count on from existing
players.
 If entry barriers are low and novices count on little retaliation from the entrenched
competition, the chance of entry is high, and profitability for Neat and Clean
Solutions The Growth Challenge will be moderated.
 It is the danger of entry, not whether the entry of new players takes place that holds
down profitability.

3.2.1.4. Some barriers to entry for new entrants in favour of Neat and Clean Solutions The
Growth Challenge :

 Capital requirements: a strong barrier to entry as new entrants will require strong
financial and resource cushioning for operations to take off and be sustained.
 Economies of scale: a strong barrier to entry as existing players in the industry operate
with high economies of scale, which new entrants will take time to achieve.
  Product differentiation: the strong barrier of entry if products within the industry have
high levels of differentiation on which they operate and approach customers.
 Access to distribution: a standard barrier to entry since new entrants will have equal
access to the retailers and distributing agents within the industry.
 Customer loyalty to established brands: a strong barrier to entry since customer
loyalties and perceptions are emotionally built and strongly enforced as long as the
brand continues to deliver on its core promise and quality.

3.2.1.5. What can Neat and Clean Solutions The Growth Challenge do to face this challenge?

 Build and invest in marketing to distinctly establish a point of differentiation in

customer perception as well as strengthen customer loyalty.
 Invest in research and development to make sure that it continues to have competitive
differentiation from other players at all times.
 Focus on building economies of scale in production and sales.

3.2.2. The threat of substitute products or services

3.2.2.1. Substitute form

 There are always different alternatives or substitutes for various products that lead an
industry.
 These substitutes may be direct or indirect– the direct substitutes are the same
category products. produced by different players; indirect substitutes are the ones
from different product categories that can replace the product for Neat and Clean
Solutions The Growth Challenge.

3.2.2.2. Switching cost to substitutes for consumers

 Switching costs for direct substitutes is not very high for consumers.
 The per-unit-volume prices may be higher or lower.
 This makes the threat of substitute high.

3.2.2.3. Substitute and product benefit

 Alternatives to the product or substitutes may not be able to provide the same benefits
 May often lead to additional costs incurred.
 Switching costs towards alternatives becomes higher, and consumers may not switch
to substitutes.
 This, in turn, will make the threat of substitutes low.

3.2.2.4. Substitutes and consumer behaviour

 From the point of view of the consumer, there are some differences between the ways
different products of the same or similar category are used, but many consumption
decisions are a matter of personal taste - this makes products vulnerable to the threat
of other substitutes.
 Overall, the threat of substitutes is assessed to be moderately high.
3.2.2.5. How can Neat and Clean Solutions The Growth Challenge combat the threat from
substitute products?

 Focus on delivering consistently high quality.

 Focus on maintaining strong consumer relationships.
 Integrate strategic marketing to form an emotional connection with the consumers and
strengthen consumer loyalty.
 Invest in pop up stores owned by the company to stock the Neat and Clean Solutions
The Growth Challenge brand exclusively, and integrate it with brand characteristics
and personality to attract consumers.

3.2.3. Bargaining Power of Buyers

3.2.3.1. Who is the buyer?

 The buyer for Neat and Clean Solutions The Growth Challenge is not necessarily the
group that consumes the product – but rather refers to the group of customers that
purchases the product from Neat and Clean Solutions The Growth Challenge to either
distribute further, retail it, or even consume it.
 Hypermarkets and supermarkets, as well as independent retailers and distribution
agents to end consumers, are the core buyers for Neat and Clean Solutions The
Growth Challenge that make up the market’s volume.
 Supermarkets and hypermarkets, along with many food chains that are concentrated,
which increases the buyer power.
 Products are stocked with buyers and retailers by Neat and Clean Solutions The
Growth Challenge based on consumer demand.

3.2.3.2. Buyer power and costs

 Neat and Clean Solutions The Growth Challenge will not experience switching costs
for switching buyers.
 Multiple product offerings by buyers also increase buyer power.

3.2.3.3. Retail product differentiation

 Products offered by retailers are differentiated based on several characteristics – not

only reliant upon product characteristics but also consumer segment characteristics.
Because of this, retailers are expected to offer a wide range of the same product
category. This works towards negating and weakening the overall buyer power.
 Buyer power is assessed to be moderate to high.

3.2.3.4. What can Neat and Clean Solutions The Growth Challenge do to ensure risks against
high buyer power?

 Neat and Clean Solutions The Growth Challenge can focus on differentiating its
product and increasing its demand with the end consumers through different
marketing tactics, this will increase the demand of the product with different buyers,
and will work towards moderating buyer power.
  Neat and Clean Solutions The Growth Challenge should employ economies of scale
to manage costs of production. If it offers products at moderate prices to buyers, it
will again be able to attract a large number of buyers for its product, and in this way,
will be able to break off the high bargaining power.

3.2.4. Bargaining Power of Suppliers

3.2.4.1. Who is the supplier?

 Supplier power refers to the power that is held by the suppliers in terms of pricing of
the raw materials and inputs used for the business.

3.2.4.2. Sources of production for Neat and Clean Solutions The Growth Challenge

 The main sources for production are the following:

 Supplies from vendors – sourcing from independent suppliers.
 Own manufactured equipment and resources: this model is practised by companies
that are well integrated backwards and forwards.

3.2.4.3. Independent suppliers

 For Neat and Clean Solutions The Growth Challenge, there are numerous independent
suppliers within the industry, and all comprise of a few pretty small operations that
lead to weakened overall supplier power.
 Independent sellers and suppliers, however, can locate different opportunities and
invest in alternative markets – which can be a challenge for Neat and Clean Solutions
The Growth Challenge.

3.2.4.4. Supply quality and business dynamics

 Suppliers can integrate forward into the decision making and business dynamics
themselves as well.
 Also, to the buyers, the quality of the supplies and the raw materials is of utmost
importance.
 However, in an industry with a high number of suppliers, Neat and Clean Solutions
The Growth Challenge can switch to different suppliers at any time without
experiencing any costs of the business.
 Overall bargaining power of suppliers is assessed to be moderate.

3.2.4.5. How can Neat and Clean Solutions The Growth Challenge deal with the challenge?

 Get contracts with multiple suppliers and get resources and raw materials from them
accordingly.
 Invest in manufacturer controlled production facility to maintain consistency in
quality.

3.2.5. Competitive Rivalry among Existing Firms.

3.2.5.1. Nature of fragmentation

  The market is highly fragmented, which makes it more competitive.
 The market is never too concentrated, and as a result, it has players of varying size of
operation – from very small to big players.

3.2.5.2. Brand management

 Producers have begun to make use of brand management techniques and

contemporary merchandising by launching bold brands, label designs and marketing
campaigns to become more identifiable to the public.

3.2.5.3. Diversification

 Purchasers and buyers have a wide range of products to choose from, with relatively
low switching costs. These factors tend to intensify rivalry.
 Though players in the industry may off niche or premium products, they also continue
to operate in the mass markets at large, which again leads to high competition.

3.2.5.4. High business costs

 The high fixed cost and the high bargaining power of the buyers, which can lead to
the lowering of the prices from manufacturers add to the highly competitive nature of
the industry.
 The overall rivalry is assessed to be high.

3.2.5.5. How can Neat and Clean Solutions The Growth Challenge combat rivalry and
competitive forces of the industry?

 Focus on research and development to identify market niche as well as to be able to

add differentiating factors t its products. This will increase its shield against influence
from competitive forces and their actions.
 Build a strong and loyal consumer base by focusing on quality and marketing
strategies.
 Focus on capturing new markets – in the same region as well as new regions to avoid
saturation of resources in one market only.

3.3. Pentagonal analysis

3.3.1. The threat of new entrants

3.3.1.1. Restriction into industry

 The ease of entry into the industry is restricted.

 There are high barriers to entry.
 These are government policies, consumer loyalty, brand differentiation etc.

3.3.1.2. Switching costs for consumers

 The high number of direct and indirect alternatives available also make Neat and
Clean Solutions The Growth Challenge vulnerable to the high threat of substitutes.
  Low to negligible switching costs experienced on the part of the consumers and
buyers.

3.3.1.3. Profitability

 New entrants are attracted to the industry because of high profitability.

 If there are high barriers to industry, the industry will continue to maintain high
profitability
 Low barriers to entry will result in a lower average of industry profits.
 Lower entry barriers will also lead to higher operational costs because it will increase
the intensity of competition within the industry.

3.3.2. The threat of substitute products/services

3.3.2.1. Increased competition

 High threat of substitutes.

 This is because of higher competition.
 The higher competition leads to imitation of products and systems.
 This imitation makes substitute products similar to each other – as much as possible.

3.3.2.2. The offering of similar benefits

 Consumers readily adopt alternative and substitute products.

 They offer similar benefits.
 They have similar functional benefits and features.

3.3.2.3. Low costs of switching

 Consumers often experience a low cost of switching between substitute products.

 Low switching costs are also developed because competition often produces at lower
operational costs.
 Low switching cost results in lower overall product prices for the consumer.
 Industry players, therefore, also start competing on aspects of price.

3.3.3. Bargaining power of buyers

3.3.3.1. Market fragmentation

 The industry in which Neat and Clean Solutions The Growth Challenge operates is
highly fragmented.
 It has numerous local and international players.
 It is not very likely for players in the industry to integrate forward into on-trade or
retail businesses.
 This results in the players experiencing high bargaining power of the buyers from the
market.

3.3.3.2. The concentration of retailing agents

  It also results in a high concentration of individual retailing agents.
 Retailing is also done through hypermarkets and supermarkets.

3.3.4. Bargaining power of suppliers

3.3.4.1. Backward integration by producers

 Backward integration from producers is more commonly observed and seen,

 Many players in the industry have their own production facilities for raw materials as
well.
 The industry has seen a large number of players needing to outsource resources and
raw materials.

3.3.4.2. Outsourcing raw materials

 This outsourcing is done by third-party manufacturers.

 A large number of suppliers present lowers the bargaining power of suppliers.
 Players in the industry have low switching costs between suppliers.
 Suppliers usually are contracted by producers.
 Producers may change suppliers frequently.

3.3.5. Industry rivalry

3.3.5.1. Intensity of competition

 There are strong competition and rivalry in the industry.

 There is a high number of players.
 All players provide similar products.
 Switching costs for consumers is low, which increases competition.

3.3.5.2. Differentiation

 Platers try to differentiate products on different aspects.

 Functional aspects and appeals for all products across the industry remain the same.
 Competitors and players use emotional appeals, and modern brand management
techniques for differentiation.
 Industry players try to gain consumer loyalty by developing strong emotional bonds
and ties.

Figure 1 Pentagonal analysis for Neat and Clean Solutions The Growth Challenge

3.4.4.1. Sales and growth

 Neat and Clean Solutions The Growth Challenge will experience slowing growth
during this stage of the industry life cycle.
 Sales will be expanding, and earning will be growing – however, the rate will be
slower than the growth stage.
  Competition from late entrants will be present, and obvious during this stage – who
will all try to fight for Neat and Clean Solutions The Growth Challenge ’s share of the
market.

3.4.4.2. Strategic Marketing

 The marketing strategies must now focus on building loyalty.

 Marketing tactics must be strong and should focus on the uniqueness of the product.
Increasingly emotional appeals may be used.

3.4.4.3. Firm size

 Firm size is generally larger and is more dominant over players if successful-
compared to growth stage.
 Innovations continue but are stable and not radical.

3.4.5. Decline stage

3.4.5.1. Industry changes

 New technological changes and upgrades may make an industry obsolete.

 Players within an industry may also fall back and lose on market share if they do not
keep up with innovations, and investment in research and development.

3.4.5.2. Sales and Competition

 Sales during this phase are decreasing at a high rate.

 Competing players also exit the industry because of the changes and low demand.

3.4.5.3. Surviving in the decline cycle

 Neat and Clean Solutions The Growth Challenge may also experience mergers and
acquisitions during this phase.
 Diversifications are also most common during this phase as a means of survival.

3.5. Strategic Group Analysis

3.5.1. Neat and Clean Solutions The Growth Challenge and strategic group formation

 The strategic group analysis will look at an industry’s players' situations in focused
conditions and scenarios.
 It will assess different players competing with Neat and Clean Solutions The Growth
Challenge through the basic strategic factors that will decide an organization's
profitability, similar to how the profitability will also be impacted and influenced by
the competitive nature of the industry.
 The strategic group analysis will describe the procedures of every single noteworthy
competitor of Neat and Clean Solutions The Growth Challenge along different
strategic dimensions.
  These dimensions of comparison differentiate players into strategic groupings and
must be selected as the basis of comparison by taking into account industry structure,
productivity factors, and the venture issues being tended to.

3.5.2. Different aspects of strategic grouping

Key strategic groupings of players within an industry can be made based on numerous
different aspects, such as:

 Specialization
 Brand identification
 Push versus pull strategies
 Channel determination
 Product quality
 Technological position
 Vertical joining
 cost position
 Service
 Price strategy
 Financial or working influence
 Parent organization relationship
 Government relationship

3.5.4.2. Assessment of market position

 The strategic group analysis is also important for Neat and Clean Solutions The
Growth Challenge because it will assist in analysing the current market position of
players, as well as help in assessing future strategic moves and directions of the
competition in the market.
 Assists in evaluating and identifying different underlying factors that will influence
the company’s profitability.
 Makes use of standard comparison aspects between different players in an industry to
group them as per strategic directions as well as strategic dimensions.

3.5.4.3. Identification of barriers to entry in an industry

 Different strategic dimensions along the matrix of strategic groupings are often
characterized by barriers to entry and exit along the strategic groups’ dimensions, as
well as by mobility barriers.
 These barriers make it difficult for companies to move along, and in between different
strategic dimensions – often forcing it to stay in place with the same competition.

4. ANALYSIS OF RESOURCES AND COMPETENCES

 This inner analysis and assessment of Neat and Clean Solutions The Growth
Challenge decide the centre skills based on the resource based view (RBV) of the
premium company.
  Utilizing its core capabilities and capacities, Neat and Clean Solutions The Growth
Challenge can maintain a competitive distinction, and leadership over other local as
well as international players in the industry.
 In the VRIN analysis and assessment, Neat and Clean Solutions The Growth
Challenge makes use of its core capacities to strengthen its worth and the to continue
to deliver the promise of consistent quality and taste to consumers – as well as
guarantee futuristic and long term gains in the industry.

5.2.5.1. Price wars by competition

 Neat and Clean Solutions The Growth Challenge competes with a wide assortment of
firms in the local as well as the international market.
 For instance, the organization competes against significant premium companies as
well as against cheaper companies that offer cheap priced items and products.
 This external but important factor in the SWOT assessment undermines Neat and
Clean Solutions The Growth Challenge because such competing players can lessen
the organization's share of the overall industry by competing based on low prices and
overall low costs of production.

5.2.5.2. Increased competition

 Additionally, this SWOT assessment also analyses increased competition as a

noteworthy threat against the business.
 In light of the organization's shortcomings, the risk of imitation includes firms that
attempt to duplicate the taste, look and feel of Neat and Clean Solutions The Growth
Challenge items.
 Saturated market place and industry can also lower sales of the organization and
shrink its share of the overall pie
 Increased competition can also lead to the increased cost of doing business for the
organization if they bring innovative processes, and implement novice systems to
control costs

5.2.5.3. Independent players

 The industry environment and profitability are liable to invite independent

developments, and small-scale players.
 These players may not have high levels of integration and may be retailers and
marketers for items produced during backward integration.
 Strategic marketing techniques and promotional communications are expected to
neutralize the impacts of these patterns.
 This section of the SWOT analysis of Neat and Clean Solutions The Growth
Challengerecognizes external key factors that force difficulties to international
expansion and growth of the company as well as highlight market infiltration.

5.4.1. Market development strategies

5.4.1.1. Advertising and promotion of products

  One of the most popular means of developing a market is to use marketing
strategically.
 By making use of advertising and marketing communications, the company will be
able to disseminate information about its product, and the various benefits of
consumption to its target market easily.
 Also, the use of social media for marketing will, at the same time allow the company
to communicate directly with the consumers, and answer their queries.

5.4.2. Market penetration strategies

5.4.2.1. Geographical expansion

 The company can expand into other markets through its previous experience, as well
as through partnerships and contracts with other agents and parties.
 The company can also develop subsidiaries, as well as offer its products through
franchising as well as licensing.
 The geographical expansion is suggested into emerging economies because of the
favourable income levels of the consumers, as well as the growing infrastructure.

 This may be done through increasing the accessibility of the product at places where
the target consumers are expected to purchase from, as well as improving the
interaction of the product with consumers at different touchpoints.

5.4.3.3. Market testing

 New products should follow PD cycles for testing before launching in a market.
 This will ensure that the company can fix any loopholes present in the product, as
well as incorporate positive feedback.

5.4.3.4. Strategic Marketing

 The company should also have a focused and strategic budget for marketing and
communications allocated for new product development.
 This is because the company will need to increase the appeal, as well as develop
functional and emotional appeals and characteristics of the new product.
 Communicate with the consumers to enhance sales as well as increase likeability and
rate of consumption and trial.