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Nucleon Inc Case Study solution


22–28 minutes

Introduction

The current case solution is published by 247caseanalysis and


focuses on Nucleon Inc. The case presents an overview of the
strategic and managerial issues that the Nucleon Inc faces in
the growth and development of the business. The case solution
focuses on understanding the central issue(s) in the case. The
case study solution then uses strategic tools and models to
solve the case and makes strategic recommendations for the
Nucleon Inc (Abratt & Bendixen, 2018; Iacobucci, 2021).

The case study and the case solution for the Nucleon Inc are
intended to give a comprehensive and holistic perspective
regarding real-world business situations and challenges to the
reader. Like all HBS case studies, it is important for the reader
to first read the case for the Nucleon Inc. The proposed case
study solution for the Nucleon Inc has encompassed the needs
of all stakeholders while addressing the central challenge
effectively (Deepak & Jeyakumar, 2019).

External environment analysis

The Nucleon Inc cannot directly influence the external


environment. The Nucleon Inc must ensure to assess and
continually review the external environment to identify potential

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challenges and opportunities (Abratt & Bendixen, 2018). This is


needed because:

• The external environment is dynamic and keeps changing.

• External environment factors and dynamics, directly and


indirectly, influence Nucleon Inc operations (Anthony, 2021).

PESTEL Analysis

Political

• The Nucleon Inc needs political stability to maintain business


development and growth globally.

• The Nucleon Inc must also pay heed to local and global taxation
implications for operations carried on site, as well as in other
countries.

• The Nucleon Inc is directly impacted by the policies and


regulations devised by the governments in its host as well as
home countries (Chernev, 2018).

Economic

• Lower interest rates facilitate the Nucleon Inc as it leads to


increased instances of borrowing.

• Lower interest rates also lead to increased consumer power,


and increased demand for products of Nucleon Inc (Deepak &
Jeyakumar, 2019).

• The operations and demand for Nucleon Inc are directly


influenced by the GDP and economic growth in the countries
where it operates and exports (Buchanan & Huczynski, 2019).

Social

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• Increased focus on education and higher literacy rates have


allowed the Nucleon Inc to benefit from a more skilled and
talented labor pool.

• The higher portion of the youth has also benefitted the Nucleon
Inc in creating a high demand for its products and services
(Iacobucci, 2021).

• Assessment of the population and consumer trends have


allowed the Nucleon Inc to refine its segmentation and targeting
strategies – leading to improved positioning of its portfolio
offering (De Mooij, 2019).

Technological

• Nucleon Inc has high internal innovation capabilities.

• Nucleon Inc invests in research and development for improved


creativity and technological progress.

• The Nucleon Inc makes use of innovative and advanced


technology to make its internal processes more efficient and
work towards achieving economies of scale.

• Nucleon Inc also benefits from knowledge sharing through


global operations and transfers technology internally (Baines,
Fill, & Rosengren, 2017).

Environmental

• The Nucleon Inc follows and abides by environmental


regulations imposed in various countries.

• Consumers for Nucleon Inc have rapidly adopted green


lifestyles and green consumption.

• Incorporating environmentalism into its strategic goals and


direction has enabled the Nucleon Inc to become more efficient

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in this resource allocation (Stead & Stead, 2014).

Legal

• The Nucleon Inc ensures to follow the equal employment and


equal opportunity law.

• Through the equal opportunity act and regulations, the Nucleon


Inc ensures that it does not discriminate against different groups
in its HUMAN RESOURCE MANAGEMENT practices.

• The Nucleon Inc also ensures to abide by the health and safety
regulations.

• The Nucleon Inc makes sure to follow regulations regarding


employment contracts and employer responsibilities to ensure
fair policy-making and high performance (Lasserre, 2017).

Porter Five Forces

Industry rivalry

• There is high competitiveness and rivalry in the industry.

• The market is highly fragmented, which leads to increased


competition for Nucleon Inc.

• The Nucleon Inc faces industry rivals of various sizes and


operations.

• The competition for Nucleon Inc is local as well as global in


nature.

• The increased rivalry in the industry ensures that all players,


including Nucleon Inc, offer high-quality products and services
to consumers at competitive prices (Varadarajan, 2015).

The threat of new entrants

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• The threat of new entrants is moderate.

• There are entry barriers such as government regulations and


financial capital needed for setting up operations.

• This ensures that only powerful players with high financial


muscle enter the market where Nucleon Inc is operating.

• New entrants ensure that the Nucleon Inc maintains its focus on
competitiveness and high quality (Wunder, 2019; Abratt &
Bendixen, 2018).

Threat of substitutes

• The threat of substitutes is moderate to high.

• There is direct well as indirect substitutes available for Nucleon


Inc offerings.

• The high number of players and market fragmentation has led to


the increased availability of substitutes for Nucleon Inc products.

• There are low switching costs for consumers between


substitutes (Sahaf, 2019; Kotabe & Helsen, 2020).

Bargaining power of buyers

• Nucleon Inc operational a highly fragmented industry.

• The bargaining power of the buyers is high.

• Players, including Nucleon Inc, do not have a retail setup


(Phillips & Moutinho, 2018; Chernev, 2018).

Bargaining power of sellers

• The bargaining power of suppliers is high in the industry where


Nucleon Inc operates.

• There're numerous players in the industry, and suppliers have

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contracted with most of them.

• The raw materials provided by suppliers are restricted, and


limited owing to quality needs and benchmarks (Kotabe &
Helsen, 2020; Joyce, 2022).

Internal environment analysis

The internal analysis allows an insight into the factors that


Nucleon Inc can directly influence. These factors and
capabilities are used by the Nucleon Inc to ensure that:

• It is able to capitalize on the opportunities from the external


environment.

• It is able to mitigate risks and manage challenges and threats


appropriately.

• The Nucleon Inc is able to set the right strategic direction and
use internal capacities towards its attainment (Stead & Stead,
2014; Deepak & Jeyakumar, 2019).

SWOT

Strengths

• The Nucleon Inc has a strong brand image and a positive


consumer perception in the market.

• The Nucleon Inc invests in research and development, which


helps the company focus its new product development as well
as marketing capabilities (Phillips & Moutinho, 2018).

• The company has a strong financial revenue earning ability and


enjoys high profits.

• The Nucleon Inc has a global distribution network, which is


strong and has allowed it to enjoy high business growth.

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• International expansion has allowed the Nucleon Inc to


understand diverse cultures and their knees – and engage in the
localization of its product portfolio (DuBrin, 2013).

Weaknesses

• The Nucleon Inc is criticized for high prices for its product
portfolio.

• The company has suffered negative PR owing to the recall of


some of its products which were faulty.

• Despite engagement with advanced technology, Nucleon Inc


continues to use manual systems internally, which leads to time
ineffectiveness (Abratt & Bendixen, 2018).

• The Nucleon Inc has an organizational culture that is resistant to


change and, as a result, exhibits slow adaptation to new trends.

• The product design for the Nucleon Inc’s offerings is imitative.

• The Nucleon Inc has undifferentiated products in its portfolio


with respect to the competition (Phillips & Moutinho, 2018;
Baines, Fill, & Rosengren, 2017).

Opportunities

• The Nucleon Inc has the opportunity to expand to developing


and emerging economies.

• The Nucleon Inc can develop outsourcing partnerships to further


maintain cost-effectiveness.

• The Nucleon Inc can also engage in green production and work
towards environmental sustainability (Stead & Stead, 2014;
Lasserre, 2017).

• The Nucleon Inc can also develop strategic partnerships and


alliances to facilitate business growth and development.

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• Target niche markets, and develop new products.

• The Nucleon Inc can benefit from the evolving media trends for
marketing purposes – including using social media content
creation to target new consumer groups (Varadarajan, 2015;
Wilson, 2018).

Threats

• The Nucleon Inc is facing high competition.

• The Nucleon Inc is also experiencing high imitation of its


products.

• The Nucleon Inc faces threats from the increased price volatility
of raw materials as well.

• The unstable government and government policies are also a


threat to the operations of the Nucleon Inc- especially
internationally.

• Slow change adaptation may lead the Nucleon Inc to become


an industry laggard (Anthony, 2021; Abratt & Bendixen, 2018).

Marketing mix

Product

• The product offerings by the Nucleon Inc maintain consistently


high quality.

• The Nucleon Inc engages in brand-building activities to ensure


that its product and service offerings are well received by the
target audience (Chernev, 2018).

• Brand-building activities build positive associations for Nucleon


Inc and lead to repeat purchases as well as high consumer
loyalty.

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• Nucleon Inc ensures that its products are available in different


SKU sizes to cater to the needs of different groups within its
target audience.

• The Nucleon Inc also offers a warranty for its products (Khan,
2014).

Price

• The Nucleon Inc ensures competitive pricing in the industry


among the high number of market players.

• For new products, the Nucleon Inc maintains an introductory


pricing strategy to encourage trials and purchases (Kareh,
2018).

• For its star products, the company maintains penetrative pricing


strategies to allow maximum trial.

• For mature products, the Nucleon Inc engages in aggressive


and competitive pricing.

• The Nucleon Inc offers regular discounts to appeal to


consumers, clear stocks, as well as for increasing footfall
(Išoraitė, 2016).

Placement

• Nucleon Inc ensures that all its product offerings are highly
accessible.

• The Nucleon Inc places products in physical retail setups like


supermarkets and hypermarkets.

• The Nucleon Inc also places products with e-tailers such as


amazon so consumers can easily access the products
(Iacobucci, 2021).

• The Nucleon Inc also has an online system on its website for

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managing orders placed directly with the company.

• The Nucleon Inc has a strong distribution network, as well as


competent and quick consumer service. (Kareh, 2018; Abratt &
Bendixen, 2018).

Promotion

• The Nucleon Inc uses traditional promotional platforms of


television to reach the masses with its product portfolio.

• The Nucleon Inc also engages in radio and print promotional


activities and advertisements (Deepak & Jeyakumar, 2019).

• The Nucleon Inc also uses social media to reach out to its
audiences and influence them.

• The Nucleon Inc has developed expertise in interesting and


relevant content creation, which attracts its primary as well as
secondary target consumer groups (De Mooij, 2019).

• The Nucleon Inc frequently uses influencers to create a positive


buzz and hype regarding its products, as well as to ensure high
reach.

• All promotional content is integrated and uses emotional


appeals to create a lasting relationship with the consumers
(Chernev, 2018).

VRIO

Valuable

• The Nucleon Inc has a strong global presence and strong


business development capabilities.

• The Nucleon Inc focuses on research and development


internally to identify market gaps and demands.

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• The Nucleon Inc makes use of AI in its production operations


and marketing functions to increase cost efficiency as well as
affectivity (Dimitrieska, Stankovska, & Efremova, 2018).

• The Nucleon Inc engages and invests in acquiring advanced


and progressive technology for operational efficiency. (Joyce,
2022).

• The Nucleon Inc has a strong retail setup and a strong


distribution network across the globe (Gillespie & Swan, 2021;
Chernev, 2018).

Rare

• The Nucleon Inc has access to unique raw materials, which


helps it maintain high quality as well as differentiation in its
product offerings.

• The Nucleon Inc holds special patents and licenses for


manufacturing processes, as well as for being able to
manufacture off-site in other countries (Grewal & Levy, 2021).

• The Nucleon Inc undertakes and participates in sustainable and


eco-friendly manufacturing processes.

• The Nucleon Inc has also developed a green packaging solution


for its product offerings and portfolio (Gillespie & Swan, 2021).

Inimitable

• The leadership within the Nucleon Inc is visionary and


charismatic.

• The organizational culture within Nucleon Inc is robust,


innovative and creative.

• The organizational culture is based on the unique values, and


implementation of the same – including transparency, honesty,

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and commitment (Groucutt & Hopkins, 2015).

• The human resource management policies within the Nucleon


Inc support employee development and engagement – leading
to high employee satisfaction and high employee morale
(Machado, 2019; Anthony, 2021).

• The compensation framework within the Nucleon Inc is


advanced and focuses on extrinsic as well as intrinsic drivers for
employee performance.

• The Nucleon Inc enjoys high brand equity based on consistently


high deliverance of product quality (Hitt, Miller, Colella, & Triana,
2017; Grewal & Levy, 2021).

Organized

• The technical infrastructure within the Nucleon Inc comprises


new and advanced technology as well as network development
to support its operations (Griffin, 2021)

• The Nucleon Inc has access to advanced physical infrastructure


as well which helps support its technical advancements, as well
as its manufacturing and related operations (Valeri, 2021)

• The international exposure that the Nucleon Inc has received


owing to its expansions has allowed it to develop and apply
innovation as well as new knowledge for improving existing
processes and schedules within the company (Hitt, Miller,
Colella, & Triana, 2017; Abratt & Bendixen, 2018; Valeri, 2021).

Value chain

• The core capabilities and strengths of the Nucleon Inc have


enabled it to overcome obstacles and challenges and achieve
its strategic goals and targets.

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• The core strengths and competencies of Nucleon Inc form an


important part of the company’s value chain (Chernev, 2018;
Anthony, 2021).

Primary activities

• Nucleon Inc works directly and owns part of its operations in the
value chain.

• The Nucleon Inc also works through different third parties as


well as contracts with other parties for managing operations in
other countries (Anthony, 2021).

• For inbound logistics, the Nucleon Inc ensures that all raw
materials are transferred to warehouses and manufacturing
sites in a timely fashion using company-owned transportation.

• The Nucleon Inc manages its operations directly as well as


through third parties.

• The operations of the Nucleon Inc are spanned in its hometown


as well as conducted overseas at other locations (Deepak &
Jeyakumar, 2019).

• In offshore countries, the Nucleon Inc manages operations


through partners and agents – who look after distribution and
marketing activities for the Nucleon Inc.

• The Nucleon Inc engages in invested marketing activities –


based on consumer and market research (Dimitrieska,
Stankovska, & Efremova, 2018; Chernev, 2018).

• The Nucleon Inc also makes use of AI for its marketing and
promotional activities.

• The Nucleon Inc regularly trains its employees to develop skills


regarding consumer service.

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• The Nucleon Inc has maintained strict policies regarding


consumer service as well as ensuring high quality and increased
customer satisfaction (Joyce, 2022).

Secondary activities

• The Nucleon Inc has a strong human resource management


department, regulated by modern policies and practices.

• The human resource management department at the Nucleon


Inc supports the organizational culture and the leadership
through its various functions – such as hiring, training and
compensation management (DuBrin, 2013).

• The Nucleon Inc makes use of advanced technology to support


its operations and achieve strategic goals and targets (DuBrin,
2013; Joyce, 2022).

• The advanced technology is acquired internationally (Iacobucci,


2021).

• The Nucleon Inc engages in regulated procurement with


selected suppliers.

• The Nucleon Inc ensures its contracted suppliers provide


consistently high-quality raw materials to maintain high quality
for end consumers (Gillespie & Swan, 2021).

Ansoff

• The Nucleon Inc is used to resolve its managerial and strategic


challenges using one of the following strategies.

• The strategies recommended will allow the Nucleon Inc to


expand and develop, as well as manage its risks and challenges
effectively.

• Using these strategies, the Nucleon Inc will also be able to

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remain competitive in the market.

Market development strategies

• The Nucleon Inc can engage in informative and emotional


marketing to appeal to the target audience in the market and
increase brand awareness.

• The Nucleon Inc can devise and run educational campaigns to


help understand the importance of the product, and its need
(Išoraitė, 2016).

• The Nucleon Inc can work with influencers and celebrities to


help spread the message through social media as well as
conventional media.

• The Nucleon Inc can use a team on the ground to interact with
the target audience, brief them about the product and its
benefits, and influence them positively towards purchase
decisions. (Baines, Fill, & Rosengren, 2017).

Market penetration strategies

• The Nucleon Inc can increase its marketing spending and use
emotional appeals to influence the target audience.

• The marketing strategies should be focused on maximizing the


reach of the brand's message and promise (Iacobucci, 2021).

• The Nucleon Inc is recommended to make its products


accessible through an increased number of supermarkets and
hypermarkets.

• The Nucleon Inc can also open its own retail setups to increase
footfall and reach across different regions (Sahaf, 2019).

Product development strategies

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• The Nucleon Inc is recommended to and can engage in market


and consumer research for product development.

• Encouraging innovation and discussion of new ideas within the


Nucleon Inc can also lead to rapid new product development
(Varadarajan, 2015).

• The Nucleon Inc can also optimize the development of new


products by making its manufacturing and testing processes
more effective.

• The Nucleon Inc can also create innovation labs and labs for
new product development and testing (Sahaf, 2019; Abratt &
Bendixen, 2018).

Diversification strategies

• The Nucleon Inc can expand horizontally and add new product
lines.

• The Nucleon Inc can also expand vertically and add new
products to the existing product line

• The diversification will allow the Nucleon Inc to attract new


consumer groups (De Mooij, 2019).

• The diversification will also allow the Nucleon Inc to increase its
penetration and reach amongst existing consumers.

• The Nucleon Inc will be able to increase brand awareness


through diversification as well (Iacobucci, 2021; Abratt &
Bendixen, 2018).

Conclusion

The Nucleon Inc needs to strategically align its resources for


optimization and to achieve its strategic goals and targets. The
Nucleon Inc should continue to use its internal capabilities to

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realize new opportunities and for mitigating risks and


weaknesses. In addition, the Nucleon Inc should also make use
of other strategic models to understand the managerial
challenges that the organization faces and devise suitable
strategies and actions for overcoming them. The leadership of
the Nucleon Inc will play a critical role in ensuring that the
organization overcomes the challenges by focusing on the
organizational culture and values, which will then impact the
operations and performance at large.

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