Guiseppe Original Sausage Company
Opportunities
Guiseppe is need of specific distribution channels in order to access the market in the Memphis sausage industry. It is very important to gain relationships with brokers to facilitate sales in both the restaurant and supermarket segments. The economies of scale in the sausage industry in Memphis indicate that producing more sausages lowers the cost of production per sausage (Chibota, 2012). This means that if Guiseppe Original Sausage Company is able to improve its distribution channels they will be able to increase their production of sausages and hence sales. An increase in their production of sausages would mean lower overall costs and that would translate into greater profit margins (Writework 2004).
There is an opportunity for Guiseppe Original Sausage Company to serve additional customer groups by developing new products. Mr Cotrone could develop a low-fat sausage variety in order to capture a new customer segment: those consumers that have health and dietary concerns (Chibota, 2012). In addition Guiseppe Original Sausage Company can increase its market share by joining e-business. By joining e-business electronic purchasing, supply chain management, handling customer service and co-operation with business partners will be enabled and the company will be more efficient (Chibota, 2012). Another possible opportunity for Guiseppe Original Company exploit would be to expand into gourmet and speciality shops (Writework, 2004).
Threats
In the U.S.A numerous studies had been conducted on the nutritional value of all types of food products. This led the U.S government enacting legislation specifying that nutritional facts were to be included on almost all food products. The primary reason for this enactment was to encourage consumers to be more knowledgeable about the nutritional value of the foods that they were purchasing and consuming (Smith and Kuzmicki). The implication of this enactment on Guiseppe...