Veerox is an ice cream manufacturing company located in Manhattan, New York. The company is devoted to producing ice creams that are natural and of high quality and also ensuring social activism as well as environmental accountability. The company has a total of 405 employees who are dedicated to being productive to the company. The company is among the leading in ice cream manufacturing and is reputable worldwide and known for its unique flavours made of natural flavours. Despite being a successful company, it faces steep competition from other ice cream manufacturing companies. This paper will discuss details about Veerox Company its geographic location, labour market, economic environment, external environment and also the approaches I would take for the company to sustain a competitive advantage in the industry.
Veerox’s ice cream products are made of natural ingredients and innovative flavours derived from Vermont milk and also Vermont cream. The manufacturing of its products is undertaken within the facility under special conditions. Veerox distributes its products which include; sorbet, ice cream, frozen yoghurt, low-fat ice cream as well as novelty products countrywide and also in some other countries in restaurants, supermarkets, shops, and grocery stores. The company’s products are evenly distributed and are accessible across the country. These products are produced and distributed on a daily basis. With regards to the company’s labor market, Veerox has enough employees of a total of 405 employees who help the company in its day to day activities to achieve the company’s objectives.
The economic environment of the company is positive and beneficial to the company. There are a number of economic factors that influence consumers. First, the company is located in a wealthy suburb of Manhattan where rich people are living. Studies imply that the rich are the one who consumes ice creams the most (Millar, 2015). Having based their company in this location gives it an added economic advantage as their products are consumed fast since they have a ready market. Second, the productivity level of the company is high since it has sufficient resources as well as enough human labor that ensures products of high quality are produced while meeting the timelines given (Millar, 2015). Third, the profit accrued from the sales made is high thus giving the company an economic advantage that will ensure its prosperity (Porter & Heppelmann, 2014). Fourth, the company has a comprehensive employment strategy that ensures that highly skilled employees are employed thus acquiring the right talents that ensure the company’s success rate.
Moreover, the company’s external environment is favorable to conduct business efficiently. The political climate is favorable as there is a minimal negative political influence on the business but rather more positive political influence on the business. There are several financers such as bank and business cooperatives that are available to secure loans to the company whenever they need it (Millar, 2015). Veerox also has enough and consistent supplies of raw materials to be used in the manufacturing process. Resources are also plenty such that the company does not strain in searching for resources nor even run short of the resources to use. The surrounding community perception towards the company is bad as the nearby community complains of the company causing pollution to the environment (Millar, 2015). There are also a lot of middlemen involved in the sales and distribution chain which is costing the company a lot leading to loses.
In essence, ice cream industry is a very competitive industry and Veerox is facing big competition from its competitors such as McMinn, Joesty, and Moonwalker ice cream manufacturing companies. For Veerox to sustain a competitive advantage against its competitors in this industry, I would recommend that a number of approaches to sustain the competitive advantage for the company with regards to the external forces. The following approaches should be considered:
- The company should apply corporate as well as environmental strategies in order to be successful economically and also to achieve environmental responsibility.
- The company should build a social cohesion and harmony with the neighboring community with an aim of changing the perception that they have on the company by involving the community in the company’s decisions and as well take into consideration all the claims of environmental pollution and also other critical concerns.
- The company should also proceed with the cost-cutting efforts in its processes, to help save on the production costs.
- Veerox should provide extra customer care services that are unique that will encourage and attract more customers.
- The company should establish set a standard of being socially and environmentally responsible in their business. This will be attained by the company taking the environment and the society’s wellbeing into consideration in their business such that it will impact them positively.
- The company should encourage further product innovation as well as product diversification frequently that will help in addressing the threats of product imitation, product substitute and also meeting the changing customer taste and preferences.
- The company should also proceed to franchise scoop shops so that it increases the company’s market reach as well as withstanding the increasing competition in the national and international scale.