Route 11 Potato Chips Harvard Case Solution & Analysis

 Route 11 Potato Chips  Case Solution

Potato Chips and its growth potential with regards to Route 11

In order to analyze the feasibility of the Potato Chips business as well as its growth potential in the years to come, it should be analyzed from the global perspective, by analyzing this globally, it can be seen that the business is around $ 16 billion annually which shows how big this business is currently and due to the significant demand all over the world for potato chips, it future growth potential could also be analyzed. (Entrepreneurs, 2016)

The significant brands of this business are giving the perception that the business has the strong entry barrier but the reality is just the opposite because the small entrepreneurs by starting up their small business which does not have any criticality can very easily grow. Like the underlying company, this business is widely operated by the family structure and then continues to grow to become to a large and effective brands. It is the requirement of the business to constantly review the capacity planning in order to predict the demands of the customers which should be later supplied to them.

The business has the significant growth potential because of the cheaper availability of the raw materials which is one of its biggest strength, moreover, can be seen that the products is not required to be targeted to some special groups because, it is easily affordable to all the income groups, last but not the least strength which reflects the growth potential of this business, is the increasing demand of the Potato Chips from all over the world which can results in earnings from the exporting of these products. However, it can be seen that the business has certain threats which could hamper its growth potential in the future.

The first and the foremost is related to the tough competition for such products from the strong brands existing whereas the other issue is related with the fluctuation in the prices of fresh potatoes. However, looking all the points from the underlying company’s perspective, it can be seen that with the additional number of flavors offered, the company’s overall growth is increasing which is also reflected from the profitability of the business and its sales revenues results. The flavor which is providing the significant revenues for the company is the Lightly Salted Flavor which should be continued. However, from the cost perspective, the company should find some alternative sources in order to reduce its operational fixed cost with relates to electricity as well as labor. The overall analysis is shown in the below given exhibits.

Is Route 11 making money?

It’s the mission of the owner of Route 11 Potato Chip to effectively find the ways to attract larger number of customers by taking use optimal resources which could give the competitive edge in the industry. Route 11 is obviously making enough money by slowly growing the business which was started with the help of her family. The significant reason behind this growth is the extensive demand of the products of the company from all over the world.

From the historical perspective, it can be seen that the company was originally producing around 60-pound-per-hour, which grown significantly to about 600 pound an hour. The company is making money by using those flavors that are highly liked by its customers and with the strong vision of taking the business to the new height, it is predicted that the company will earn significant money in the future.....................

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