Research Paper on Structures of the Technology Sector and its Changes

Research Paper on Structures of the Technology Sector and its Changes Technology, by any measure, is the most competitive and fast moving industry, and businesses have to develop new structural strategies to maintain their competitive sustainability. The survival of business in the industry is dependent, in part, to innovation and new product development, and as well, structural reinvention and strategies. Actions and strategic decisions of top management executives are essential in the determination of the future of many organizations and in enabling these organizations to avoid becoming obsolete. Traditionally, business organizations in the IT industry have used integration to enhance their developmental and operational activities. For instance, IBM has managed to stand the test of time by becoming successful for extended periods despite the challenges associated with the fast-moving technological field (The Economist, June 11 2011). The success of IBM can be attributed to the fact that IBM’s strategic and operational activities revolved aroun d developing products based on ideas rather than basing the development on the development of a specific technological product. Concentrating on an idea made it easy for IBM to adapt to different industry situations such as shifts in technological platforms. Currently, majority of technology giants are adopting similar strategies of focusing on particular ideas as opposed to focusing on a particular technological product (The Economist, June 11 2011). The growth challenges facing HP, the world’s biggest PC maker, can be attributed to the fact that it concentrated majority of its operational activities in the manufacture of particular technology-PCs. A shift in diversification of strategy could enable HP to expand its idea portfolio and hence, sustain the changing operational factors in the technology industry (The Economist, August 27, 2011). Other firms in the IT industry that have learnt the strategy of capitalizing on ideas include Apple Inc., Amazon, and Facebook. Innovation and iconic leadership have enabled Apple Inc. to innovate new ideas and develop new products that not only satisfy the needs of the market but also products that are packaged in an elegant an appealing manner to sustain the competitive environment in the industry. Sadly, the Apple’s founder might be gone but his legacy still lives on. The current management will keep on innovating new ideas to enhance the competitive edge of products develope d by the Company. Similarly, Facebook and Amazon are other technological players that continue to utilize ideas in the advancement of their operational activities. Interestingly, firms such as Microsoft, Oracle, Google, and Dell have managed to survive in the industry despite using traditional technologies and single products (The Economist, June 11 2011). Even though there is a hidden secret behind the continued survival, these firms must restructure and reinvent their strategies in order to strengthen their competitive edges. Business Integration This process entails putting the focus in the improvement of effectiveness and efficiency of strategic processes of running business organizations. Although the process might seem complex, major activities in business organizations are concerned with the improvement quality, provision of timely information, and rapid implementation of business strategies. The vital thing is the identification of an enterprise integration strategy that encompass different types of technologies. Integration strategies have an effect of enabling firms to enhance their business abilities and deliver success in projects (Barkley, 2006). Reducing costs in the end and maximizing profits should form the basis for the majority of business enterprises. An examination of the technological industry reveals that the majority of organizations in the industry have focused on strategic changed for different strategic reasons. Firms are adopting a mixture of vertical integration and horizontal integration strategies to enhance their competitive advantages and as well, increase growth levels (Jones, and Hill, 2009). Overall, diversification and integration have increased value for most business organizations. Many an organization have operated using basis strategies that have evolved over time. Equally important have been the effects of the management structures of such organizations and the actions of management have had an impact of adjusting internal strategies. The most difficult part among such organizations is the management of strategic shifts during business integration (Helmy, 2006). The type of adopted integration strategy should be formulated to address new problems, challenges, and opportunities that are currently facing the or ganization in question. As such, the formation and initial structure of many firms in the Technology industry have had an effect of influencing the strategic structures of firms. For instance, vertical integration was adopted due to the need to provide solutions to challenges and news of the new markets (Badinger, and Egger, 2008). As the market continued to diversify, there was the need to combine new strategies and as such, organizations made structural changes cater for other emerging organizational responsibilities. This channeled the need for the adoption of horizontal integrations among organizations. Horizontal Integration This form of business integration entails the expansion of business located in the same value or supply chain (Gaughan, 2010). Examples of vertical integration include a situation whereby an automobile manufacturer purchases a SUV vehicle manufacturer, a TV station that owns a radio, and newspaper company, and Oil Company purchasing refineries. Growth in such a situation is obtained through external and internal expansion activities. For instance, mergers and acquisitions between firms that offer similar services and products e.g. the merger between HP and Compaq is a good real life example of Horizontal Integration. The acquisition of You Tube by Google Inc. is another example of Horizontal Integration. Advantages of Horizontal Integration Firms with horizontal structures are associated enjoy certain advantages when compared to those with vertical structures. First, Horizontally integrated firms have focused resources such that technological, managerial, functional, and financial resources are channeled into the enhancement of competitive advantage in one particular area (Grossman, and Hart, 2006). Focusing on a particular resource or area enables such firms to add value to their products. Second, horizontally merged firms have the ability to increase their profit generating capabilities. For instance, lowering the cost structure can enable a horizontally integrated firm to increase the economies of scale and minimize the duplication of resources between the two companies (Grossman, and Hart, 2006). Additionally, the merged firm is capable of enhancing product differentiation through strategies such as cross-selling, offering total solutions to customers, and product bundling. Third, horizontally integrated firm is cap able of reducing rivalry among industries through the elimination of excessive capacity within the industry and the implementation of tacit price coordination among rivals. Last, these firms are capable of increasing their market power when compared to the power of buyers and suppliers. It also helps in gaining greater market control. Other benefits related to Horizontal Integration include increased economies of scale given that the merged firm or the parent company would register more sales from the sale of increased volume of the same commodity. This is possible because merged or acquired firms would benefit from the already developed distribution and marketing channels in different geographic locations. Cost reduction is also possible through horizontal integration. Another advantage that results from Horizontal Integration is the expansion of operational scope that can be achieved when resources are shared equally in the production of different products. The economies of scope are known as resource synergies. Horizontal Integration leads to increased market power of the organization thereby enabling it to control downstream distribution channels. Firms located in different locations can operate their activities from different locations. Other benefits associated with horizontal integration strategies include expansion of market share and attracting more customers through the sale of the developed brand. It also leads to strengthened negotiation power because the company will obtain more advantage when compared to other leading suppliers. Challenges of horizontal Integration Other than the increased competitive power of acquired or merged organizations, the concentration of firms in the market results to other challenges and products. First, responsibilities and workloads would increase significantly due to the increased size of the organization. Merging different cultures has an effect of altering the organizational culture, and managers have the tendency to overestimate or underestimate the problems resulting from merged or acquired operations. As such, it can result to a horizontal monopoly and monopolies are not good for the market. Anti-trust issues are some of the factors that under the operations of horizontally integrated firms because of the reduced competition or the creation of a monopoly. Other than the factors arising from these legal issues, it is often unlikely for horizontally integrated businesses to realize the projected economic gains. Horizontal integration can be blamed for the many challenges that exist in the IT industry, particularly among computer firms. For instance, many firms in the computing industry adopted horizontal strategies thinking that there were many synergies between hardware and software. This believe was driven by the notion that the synergies between these two sets of products would enable such organizations to realize economic scopes. Even though horizontal integration holds huge benefits, the potential benefits do not occur spontaneously and, thus, the corporate management of horizontally integrated organizations must formulate strategies (Grossman, and Hart, 2006). Vertical Integration Firms in the IT industry adopted the Vertical Integration strategy due to the need for managing the expanded stream of downstream buyers and upstream suppliers. Examples are supermarkets and food manufacturers that are involved in different stages of production. Oil refineries and petrol stations are also other good examples. This strategy has an effect on enhancing the unit position of an industry in relation to differentiation, cost reduction, corporate strategies, and addressing strategic issues. Forward integration and backward integration are two forms of vertical integration. A third form of Vertical Integration (Balanced integration) exists when an IT company becomes responsible for setting up subsidiaries to supply in puts and at the same time market their own products. IT firms adopts forward integration in order to obtain ownership and more control in downstream distribution activities of retailers and distributors. This includes a situation whereby the organization’ s distributors are expensive or unable to satisfy the distribution needs of an organization, when the competitive advantage in the industry is determined by firms practicing the forward integration strategy, and as well, when the industry grows at an increasing rate. The forward integration strategy enables such firms to diversify its capabilities in case the market becomes volatile. Other factors that make it ideal to adopt forward integration includes possession of capital and human resources, high but stable production, and high profit margins for retailers (Jones, and Hill, 2009). Similarly, the need to gain increased control and ownership of the upstream suppliers calls for the adoption of the backward integration strategy. This entails the process where the IT company owns some of the subsidiaries responsible for the production of particular inputs. This is common in situations where unreliability among suppliers exist, the suppliers are very expensive, and as well, in situations whereby suppliers are unable to satisfy the needs of the organization. The increased global competition results to the need to minimize the number of suppliers, meet the demand for the need for high service delivery, and improve the quality of products distributed. Ideal situations for the backward integration strategy includes the capability of the organization in terms of human resources and capital in managing the firms’ supply of raw materials, the competitive situation of the industry, and high profit margins for suppliers. This explains why Dell opted to supply personal ized products directly to consumers. Advantages The major benefits associated with vertical integration are most concerned with control and cost minimization. The aspect of controlling costs is dependent on the prevailing costs of transactions between firms in the market and is often compared to the internal costs of administration within a single firm. In lieu of asset control, firms are capable of influencing entry barriers and obtain control of key-value adding aspects. Advantages obtained by firms that adopt vertical integration include the following. First, vertical integration leads to lower transaction costs. Reduction in costs comes because of inter transactions between subordinate companies that are managed using a central communication and management system. Second, vertical integration leads to high certainty of quality because of the central system of quality control and hence production of standardized products. Third, vertical integration enables firms to obtain monopoly of the market given that they control producti on and distribution activities. Other benefits of vertical integration include the ability of firms to capture downstream and upstream profits, increasing the entry barriers to potential competitors, and facilitating investment activities in highly specialized but profitable assets that downstream or upstream players might be unwilling to invest. Disadvantages Firms that adopt Vertical Integration structure are also associated faced with a number of challenges. The first drawback involves the need to balance the capacity of the organization to deliver balanced upstream and downstream operations. Second, vertical integration can lead to inefficiencies that result from higher costs and lack of competition among suppliers. The cost structures are generally increasing and therefore, suppliers owned by the company can develop higher cost structures than those from independent suppliers. Vertical integration can undermine the process of creating new competitions because it has an effect of compromising the already existing competencies. Third, given the changing nature of technology, vertical integration may make a firm to be locked in inefficient or old technologies. Vertical Integrations have been known to prevent firms from adopting new technological innovations that are critical in strengthening the business model. Last, vertical integration increases bureaucratic costs and other management costs such as costs associated with finding solutions to transaction difficulties. Conclusion By any means, structural implementation and strategic design play critical roles in determining the success of many an organization. Organizations have to implement strategies that suits the demands of the market and as well, those that are compatible with the business model. changes have to be made to align the organization to its business model and restructure the organization to meet the competitive pressures (Gaughan, 2010). Structures are also critical in organizing employees and in making critical decisions that cover many aspects of the organizations. The management leadership in many organizations have to decide on the right organizational structure to adopt in the realization of company goals and objectives. The organizational structures can either be based on centralized, decentralized, focused purpose, or future perspectives depending on the long-term goals and objectives (Helmy, 2006). An examination of the IT sector reveals that the industry is one of the most competitive and fast moving industries. Organizations within this industry are forced to develop new structural strategies to maintain their competitive sustainability. The survival of business in the industry is dependent, in part, to innovation and new product development, and as well, structural reinvention and strategies. Like in most organizations, actions and strategic decisions of top management executives are critical in determination of the future sustainability of many organizations. As such, managers must choose the best integration strategies to enable them remain competitive. Another critical thing in the technology industry is the ability of organizations to develop products from ideas as compared to developing products based on particular technologies. The success of IBM can be attributed to the fact that IBM’s strategic and operational activities revolved around developing products bas ed on ideas rather than basing the development on the development of a specific technological product. Concentrating on an idea made it easy for IBM to adapt to different industry situations such as shifts in technological platforms. Similarly, the dwindling performance at HP can be attributed to adoption of the wrong integration strategy. Admittedly, technological products have specific life cycles and therefore, firms have to be innovative in order to keep on addition new products into their product portfolios. For this reason, business integration becomes an integral factor when deciding the type of structural changes. Managers and management executives have to examine the structures of their organizations critically before deciding adopt Horizontal or Vertical Integration or a combination of both (Badinger, and Egger, 2008). Each structure has its own benefits and setbacks and it is upon managers to conduct a thorough analysis of the situation before adopting the right integrati on strategy. Bibliography Badinger, H. and Egger, P. 2008. â€Å"Horizontal versus Vertical Interdependence in Multinational Activity,† CESifo Working paper No. 2327, Category 9: Industrial Organization, June. Barkley, B. 2006. Integrated Project Management. McGraw-Hill Gaughan, P. A. 2010. Mergers, Acquisitions, and Corporate Restructurings. John Wiley and Sons Grossman, S. and Hart, O. 2006. ‘The costs and benefits of ownership: a theory of vertical and lateral integration’. Journal Of Political Economy, 4. Helmy H. B., 2006. Organization Structures: Theory and Design, Analysis and Prescription. Jones, G. and Hill, C. 2009. Strategic Management Theory: An Integrated Approach. Cengage Learning The Economist, August 2011. ‘HP’s Grand Vision: Aping IBM. The Economist. August 27th 2011 The Economist, June 2011. ‘IBM’s centenary: The Test of Time’ The Economist. June 11th 2011

Technological Er The Internet s Effect On The Human...

Technological Era: The Internet’s Effect on the Human Brains Neural Pathways The twenty-first century has been an era of such grand advancements in technology. From the invention of the two way video calling application, Skype, to the multi useful Apple iPhone, technology has created a less patient, multi tasking, more connected to the world around them, consumer. Walking down the street, people are constantly checking in with their technology, whether it its responding to a text, replying to an Instagram comment or reading the latest article on the CNN news app on their iPad. Technology has become a regular part of many North American’s life whether it be for the better or for the good. Schools are leaning towards teaching through SMART†¦show more content†¦From the readings off the MRI’s scanner, Dr. Smalls noticed that the brain activity of the veteran internet users was noticeably higher than of those that were new internet users. Furthermore, he cam e to find that spending significant time on the internet reroutes the brains pathways in a quick and distinctive manner. Pushing his findings further, Small experimented onward with the new internet users commanding them to spend an hour daily searching the internet. After analyzing this study Small found that the new users had now developed a â€Å"distinctive neural pathway† that the veteran internet users possessed too. Carr now recalls when computers started coming around in the 1980’s people thought it would allow students to think in a more rounded way because of the quick, and vast way that they received information online. According to Carr, some of effects on the brain from the constant use of internet was â€Å"disrupting concentration of the brain and weakening compression.† (Carr) To sum up the negative effect of the internet on the brain, Carr suggests that the easy access that the internet gives to us about countless forms of information has turn ed humans into â€Å"shallow thinkers, literally chaining the structure of our brain† (Carr). Onward, Carr notes how hypertext was believed to improve critical thinking

The Market Environment for Donald B-Free-Samples for Student

Question: Discuss about the examines the market environment for Donald B'. Answer: Introduction: The topic basically examines the market environment for Donald B' that operates through wholly-owned stores in Melbourne. It currently produces chocolates containing milk ingredients. The success that they have achieved so far, had encouraged the management to think of expanding the business to get better exposure to a much wider market and hence, the revenue growth. Plans are in place to move to other parts of Australia and also in different other markets at the global level. The study is purposefully aimed at understating the various factors which can potentially influence the business both in positive and negative ways. Such factors do lay the foundation of strategy making which is important prior to any such business expansion. The study covers the background information on the topic, both macro micro-environmental analysis, competitor analysis and the consumer behavior for chocolate confectionery. Background: Donald B is a Melbourne based company which is specialized in chocolate making. They have their existence limited just to two wholly owned stores in Melbourne; however, they have been a potential choice for customers in areas where the stores are based. Chocolate related products are expected to be much in demand in Australia in the nearing future. There are several factors like the market trends and foreign chocolate brands entering in Australia, which is making up the platform. People are now educated about the benefits and the harmfulness of having chocolates. They have pre-established beliefs on the benefits of having milk. Additionally, chocolate is now identified as good for health. This is for such reason milk chocolate is more preferred over other types of chocolates like the dark and white chocolates (Vecchio Annunziata, 2015). The other trend which is helping the chocolate industry to grow is an incrementing participation of foreign brands such as Nestle, Krafts Foods, Ferrero Group and others which are entering Australia (Gallo, Antolin-Lopez Montiel, 2018). The entrance is helpful in regards to the trend as people get to know the various flavors offered by a number of different chocolate making companies. This is also true that the increasing number of companies will possibly enhance the market competition as customers have wider options and can easily find the best taste for their desire (Gallo, Antolin-Lopez Montiel, 2018). The best taste can be from any brands which are why it is necessary that brands compete with each other in producing best taste to customers. This also means that the Australian chocolate manufacturing business will have enhanced competition and hence, there is very less place for any operational flaws from competitor companies (Hackenesch, 2017). Macro-environmental Factors: Political- There have always been government involvements in the chocolate making industry. The involvements were being majorly due to the harmfulness of excessive consumption of chocolates. Chocolates if being consumed excessively can supply the calories more than 250 which is as identified at the universal level, is not good for health (Miah et al., 2018). Calorie intakes in excessive amounts may contribute to obesity which is not less than an epidemic in the global societies. Likewise, the Australian government has more or less the same attitude for chocolates and related products. They have kept on discouraging the excessive consumption of chocolates as these are rich in calorie. There have been a few health-related campaigns and media reporting also where excessive consumption of chocolates has been publicized as harmful to health (Elliott et al., 2014). Moreover, common people are now concerned with the fact which is also evident in the current market trend for chocolates. The current market trends have been very good for chocolates made with milk ingredients (Elliott et al., 2014). The government is also appreciating the moves of reputed chocolate manufacturing companies like Nestle and Mondelezs Cadbury for supporting the cocoa producers and the child labor. The major manufacturers have now decided to make cocoa oriented chocolates, so that, farmers get ample of demands for cocoa. They are also discouraging deforestation which is another important po int for a sustainable cocoa production (Glin, Oosterveer Mol, 2015). Economic The Australian market has been one of the favorite choices for reputed chocolate brands like Cadbury and Nestle across the globe. This simply means they have favorable factors in the country both from the customer and the government perspectives (Soosay et al., 2016). A deal between Cadbury and Kraft in the past does also indicate the very same fact (Ausfoodnews.com.au, 2018). Both are globally renowned companies in different domains. The deal validates a few points which are also good for the case study company. First and foremost, it speaks of the government supports which have been encouraging in Australia. Afterward, it also indicates the market potentials which are making such deals to happen. After then, consumer behavior has also been very encouraging and helping for chocolate manufacturing companies (Soosay et al., 2016). Such facts just validate that the case study company Donald B is expected to get potential growth options in Australia. Social People are now educated and have the proper idea of health-related facts of chocolates. This is for such fact; the market trend is more in favor of chocolates being made from milk ingredients. Afterward, they prefer having dark and white chocolates (Schouteten et al., 2015). It is also expected that the chocolate consumption will increase in the nearing future. This is because customers are now aware of the safe level of consuming the chocolates. They also know that having a chocolate made of milk ingredients is advisable instead. Hence, they now have fewer worries and more excitement for chocolates (Schouteten et al., 2015). One more factor is quite admirable, which is the incrementing trend of customers for various kinds of stores like the Hypermarket Supermarkets, Chocolate Boutiques, Convenience Stores, Online Retail and others. It means the case company Donald B has better opportunities to reach to a wider customer base (Alberts Cidell, 2015). Technological A supportive environment is now available to the research development (RD) process in Australia. The existing chocolate leaders have been able to identify the sustainable resource for chocolate making. This is why the Australian chocolate industry is now switching over to cocoa largely (Afoakwa, 2016). By doing so, they are not actually proving their stand for healthier chocolates but, in another way, they are also supporting the farmers of cocoa. They are actually benefitting them in several ways like they are being able to produce a much better chocolate from the health perspective. Additionally, they are also proving their stand for corporate social responsibility (CSR) which is a growing concern for the local government and also the common public (Cole, 2014). Donald B may expectedly be able to explore the RD practices, so that, it manages both the direct and the indirect competition. Environmental Cocoa production has long been associated with environmental harms like soil erosion and then forest deforestation. When soil erodes, it makes soil less fertile for cocoa (Thakur Dillon, 2018). This is a real challenge as from where more lands for the cultivation of cocoa trees will be managed. However, an improved mixing of advanced technologies can help to prevent potential harms to the environment (Thakur Dillon, 2018). This is also good from the perspective of case company as they are considering switching over to cocoa. The advancement of cocoa production will mean a sustainable supply of cocoa which is necessary to further the business in the chocolate industry (Thakur Dillon, 2018). Legal According to the Fair Labor Association, the minimum age of labor for hazardous work is 18 (Toffel, Short Ouellet, 2015). Chocolate companies including the major manufacturers like Nestle could not avoid using children under the allowed minimum age limit for hazardous works, in its supply chains for so many years. This means the case company needs to prove its stand in terms of CSR (corporate social responsibility) which is a challenge considering the fact that child below the minimum allowed limit is still being employed for hazardous works in cocoa production. However, the Australian major chocolate brands have announced their commitments for abolishing the child labor in the cocoa growing industry (Toffel, Short Ouellet, 2015). Micro-environmental Factors: Bargaining power of suppliers Bargaining power of suppliers in the chocolate making industry is high. The Australian chocolate making industry imports only the premium quality of cocoa and hence is required to pay a high amount for it. They are not able to get the premium quality cocoa on their desired quotation for the price (Wessel Quist-Wessel, 2015). However, the situation may be different in the nearing future as the reputed chocolate brands in Australia have announced to import cocoa only from the region that guarantees of sustainable cocoa production. Moreover, a sustainable cocoa production does also mean not exploiting the child labors. Hence, the reputed chocolate brands in Australia may have a much-improved control on their suppliers (Wessel Quist-Wessel, 2015). Bargaining power of customers Customers are always the driving factor in business. Likewise, they are also driving the chocolate industry in Australia. They have different preferences distributed distinguishably in the, unlike age groups. They are also aware of the fact that chocolates made of milk ingredients with fewer calories in it can be healthier (Nakamura et al., 2015). However, cultures relevant to chocolate consumption can be created. There is a population who just cares about the taste while less bothering the after effects. These are mainly the children in the age group of (6-12) years and the teenage people. In such situation, manufacturers drive the market with the distinguished variety of taste (Laureati, Bergamaschi Pagliarini, 2015). However, parents who are aware of the chocolates and its relevant after-effects, they may take a step to prevent their kids from consuming excessive of chocolates. Threat of new entrants Threat of new entrants is also high. However, the level of risks may vary depending on the market segment where the business operates. Threat may be severe in the mass market where globally renowned brands like Nestle and Cadbury operates. However, this may be comparatively lesser in mid-market where all SMEs operate (Booth Whelan, 2014). This is good for the case company Donald B as it has plans to enter the mass market. As threats are higher, the case company will face fewer challenges prior to entering the market. However, this also means that there will be more such new entrants in the market. The number of entrants will enhance the level of competition in the target market segment. The case company may be competing with the globally renowned names and some other potential names in future. Threat of substitutes Threat of substitute is also high. This may be severe also as chocolate manufacturers have the minimum or probably no idea of the substitute threats (Mialon et al., 2016). The threat needs to be countered, so that, chocolate manufacturers can have potential business in Australia. There is a need for a highly integrated management information systems, so that, required data could be collected from other industries and its relevant products. This may really help in identifying the possible threat of substitutes (Mialon et al., 2016). Competitive rivalry Competition is very high in the Australian chocolate industry. In the mass market, there are competitors like Mondelez (Cadbury), Mars, Ferrero, Haigh's, Nestle, Lindt and others (Wellard et al., 2017). The mid-level market is also occupied by various chocolate brands. A switching over to the mass market will require strategic capabilities to remain competitive. The case company Donald B will need to have effective strategies planned before it actually enters the mass market. The company is in the mass market will have indirect competition from renowned names like Nestle, Cadbury, and Lindt. This is why it is important that they take care of materials supply and the manufacturing capabilities, so that, quality chocolates could be offered to customers (Wellard et al., 2017). Direct Indirect Competitors: The case study company will face indirect competition from renowned global names like Nestle, Mondelez (Cadbury), Ferrero, Haigh's, Lindt and others. The company will need to do a lot in order to stay stronger in front of the competitors. They need to maintain effective relationship with suppliers. There is a need to use sustainable cocoa products to manufacture the varied kind of chocolate products. Advanced technologies should also be used to improve its product quality and to draw the customers attention. It is indeed challenging to draw the customers attention as there already exists, a few of the world-renowned names. Technology will also be required to enhance the capability of management information systems, so that, the threat of substitutes from other industries could be tracked. A close monitoring of the market trend for taste-related change and also the consumer behavior will also be the need (Serra Kunc, 2015). Analysis: The analysis clearly indicates that Donald B has a better platform in the form of mass market to enrich its business. However, it is expected to face tough challenges from established globally renowned brands like Nestle, Cadbury, Lindt, and others. Those established brands have their customers in the mass market which means Donald B' is certain to face the utmost challenge for producing its own customer base. For doing so, the case company needs to take care of innovative strategies which are required at the various level of operation. Innovation is required while managing a healthy relationship with the suppliers. It is also needed to identify who will be the ideal list of suppliers fulfilling the needs of the case company. Technological innovation is needed while during the manufacturing process, so that, improved taste could be delivered. They need to have the effective and innovative marketing strategies, so that, required hype could be created. Donald B has its customers in the mid-level market where they currently operate. Consumer Behaviour: Consumer behavior for chocolates can be understood from various factors like the current statistics showing the recent performance of the industry, the age brackets that prefer chocolates and others. According to the Roy Morgan Research, Australians are now consuming more chocolate that they were in 2013 (Ausfoodnews.com.au, 2018). Roy Morgan Research in 2016 had found approximately 68.4% of population ate few types of chocolates in an average four weeks. This is much more than the number of people consuming any type of chocolates in 2013 (Ausfoodnews.com.au, 2018). The increment is close to 2.6% (Ausfoodnews.com.au, 2018). Australians love to have the chocolate bars which are the most popular choice of the chocolate type. Approximately around 53.2% of the entire population love eating the chocolate bars. It is followed by 41.8% who like to consume the chocolate blocks (Ausfoodnews.com.au, 2018). Another 19.2% of the total population love eating the boxed chocolates (Ausfoodnews.com. au, 2018). From the aforesaid discussions on the eating habits of the Australians, it appears a growing trend in any type of chocolate consumption. There is a much better forecast in the nearing future. Consumers have now access to the internet and the available articles on the websites. They are now able to understand a bit about the harms and benefits of eating chocolates (Kakkos, Trivellas Sdrolias, 2015). The rising cases of obesity could have been a potential threat to the industry; however, the industry has strategically mitigated the threat to some extent. The industry has offered customers a varied range of chocolate options like made of milk ingredients. The fact that milk is good for health, it started to draw the attention of customers to the fact. A few related articles on websites supporting the consumption of chocolates by also citing its benefits have worked in favor of the business (Kakkos, Trivellas Sdrolias, 2015). The Australian chocolate and confectionery market remained resilient during the economic struggles due to investments in product development. According to the IBIS Worlds report, the chocolate and the confectionery manufacturing business in Australia have overcome the unstable commodity prices and enlarged import rivalry. They have done it by investing in NPD (Ibisworld.com.au, 2018). The report further adds that a rise in healthy substitute products has further boosted the industry. It has encouraged chocolate makers to offer customers the chocolates that add nutritional values to their life. The chocolate manufacturers had needed to use innovative strategies to respond to the changing perception of customers (Byrd?Bredbenner et al., 2015). They had rightly done the same which is also evident in the types of chocolates that are available in the market. Renowned names in the chocolate industry like Nestle and Cadbury had to use product innovations, strong brand loyalty, and aggressiv e marketing to respond to the changed consumer behavior (Byrd?Bredbenner et al., 2015). Age bracket does also matter a much in the chocolate industry. The children who are in the age group (6-12) have little or perhaps no concerns for healthy chocolates. They just need the varied range of tastes that they could experience in different moods. However, they are largely dependent on their parents for getting their favorite chocolates. Hence, if their parents are educated then they may try and prevent their children from consuming the chocolates. However, doors are always open for healthy chocolates which parents would also buy for their children (Solomon et al., 2014). The case example does very well support a fact that to have a sustained business in the chocolate and confectionary industry, it is imperative to use innovative strategies, so that, aspects of health benefits could be enhanced. Customers in their teenage may be the best customers for chocolates considering a fact that they prefer taste over anything (Solomon et al., 2014). Customers in the age bracket (20-35 ) may be developing the various changes in regards to product-related sense. Hence, they may be a good observer of health-related effects of what they consume (Ashman, Solomon and Wolny, 2015). Customers in their maturity level are the potential observers of what they consume. Chocolate making companies need to take innovative strategies if it targets them as their customers. Innovation will indeed help to deliver a health-oriented product (Ashman, Solomon and Wolny, 2015). Bibliography: Afoakwa, E. O. (2016).Chocolate science and technology. John Wiley Sons. Alberts, H. 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