Wednesday, October 23, 2019
Whole Foods Value Chain
Team O Financial Performance Analysis of the financial performance Team O through periods 0-4, highlights the company performance scorecard, market share, brand contribution, the overall performance of the brand and the brands position in the BCG matrix. The two brands are SOLD and SONO and at the end of period 0, SOLD has 11. 9% market share and SONO has 5. 6%, SOLD has the largest market share In High Earners at 29. 9% and Pros at 19. 5%. SONOââ¬â¢s highest market share is in Buffs at 16. 2% and has 42. 4% in specialty stores, 39. % in department stores and 25. 2% in mass merchandisers. SONO was 42. 5% in specialty stores, 38. 1% in department stores and 24. 1% in mass merchandisers. Period O the market capitalization was 276,287 with a net contribution of 13,644. In period 1, SOLD has slightly decreased to 11. 8% while SONOââ¬â¢s overall market share grew to 6. 5%. SOLDââ¬â¢s High Earners decreased to 27. 6% while Pros increased to 21. 6%. SONO significantly increased in Buffs to 25. 6% as the goal for SONO is to become a cash cow in Buffs and withdraw from other markets.SOLD is focusing on High Earners and Pros to steadily increase market share while the market capitalization increases to 322,185. The net contribution for period 1 totaled 21,089 and the stock index rose to 1,166. The distribution coverage in period 1 was more wide spread as each brand had an overall mean of 34. 6%. In period 1, what was most successful for Team O was SONO and the increase in Buffs market share percentage. Period 2 The overall market share for Team O decreased to 11. 4% and 6. 3% for SOLD and SONO. However, team O captured the highest overall market share at 21. % over competitors. In SOLDs most important markets of High Earners and Pros there was a decrease to 23% and an increase to 24%. SOLD also has an increase in Buffs at 8% which the brand SONO continues to increase market share to 31% and remain non-existent in the other markets. The market capitalization rose to 363,906 ranking 3rd among competitors in the stock market. The company performance key indicators show team O with the largest number of retail sales each period. Team O in period 2 has a steady increase in the Buffs and is continuing to be a cash cow in the Buffs.Period 3 Market share for SOLD dramatically increased as efforts were set on increasing High Earners and spreading to gain market share in all markets. Buffs increased to 12. 8%, Singles increased to 4. 6%, Pros decreased to 17% and High Earners increased to 29. 6%. Resulting in an increase in net contribution to 38,594 and market capitalization at 434,919 gives Team O the highest stock index at 1,574 ranking first among its competitors. SONO continued to increase its market share in the Buffs at 37. 6% and becoming a cash cow.Success in period 3 is contributed to the diversification of SOLD increasing overall sales much greater than a steady increase in one or two market segments. Period 4 The overall market share for SOLD decreased as the decision to enter the Vodite market was made. SOLDââ¬â¢s Pros was significantly reduced to 6. 7%, High Earners to 23. 5%, Buffs 9. 1%, Singles 2. 3%. SONO continued to grow at 40. 1% in Buffs. Team O has expanded with VOLT to the vodite market capturing 100% of the Innovators, Adapters and Followers.The ability to do this was beneficial as no loan was incurred to cover the costs of a new product. The financial performance of Team O shows significant potential and establishing the market dominance with SONO in Buffs as well as being the first to enter the Vodite Market creating brand loyalty and capturing significant sales. SOLD continues to be a successful brand and contributes the majority of retail sales to Team O. Evaluating the BCG matrix SONO has become a cash cow, SOLD becomes a question mark and VOLT remains a question mark with high potential.
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