Alliance One International Inc
An analysis of the company based on Porter’s Five Forces
Alliance One International Inc faces the threat of new entrants in the market. Many Tobacco investors are likely to join the market and have their share. However, Alliance One International Inc can overcome this threat by introducing the new product as well as services in the market. The new products will bring more customers to the company and also challenge the old customers to continue buying the company’s products. Alliance One International Inc can also overcome the threat of new entrants by reducing the cost of production, to reduce the price of the products. Don't use plagiarised sources.Get your custom essay just from $11/page
The company also faces the bargaining power of suppliers. Powerful tobacco suppliers increase their prices and convince tobacco companies to buy at a specific price (Alliance One International Inc., 2018). However, Alliance One International Inc can overcome this challenge by having many suppliers to prevent single or few suppliers form hiking the rates. The company can also create a strong relationship with some of the suppliers that will not take advantage of increasing prices. Alliance One International Inc also faces the bargaining power of buyers, where buyers demand the prices of the products to reduce. The company can overcome this challenge by creating a large group of reliable customers and introducing new products in the market. The measure will reduce the bargaining power of the customers.
The company also faces the threat of substitutes in the market. Some other products and services satisfy the same needs of the customers that Alliance One International Inc has to overcome. The company can overcome this threat by meeting all the needs of the customers. Also, it can adjust the cost of the product from time to time. Lastly, the rivalry of existing competitors is a significant challenge. The company has to compete with local companies and one international company that also have a considerable market share (Alliance One International Inc., 2018). It can overcome this threat by enhancing product differentiation and partnering with all the competitors to attract more customers into the market.
An analysis of the effectiveness of the contingency leadership model
Alliance One International Inc employs the Decision-Making theory to carry out its various activities. This theory explains how reasonable leaders behave under risk as well as uncertainty (SAGE Publications, Inc). Effective leaders look at situations in the company, asses them, and resolve how different groups will improve the conditions. There are various departmental leaders at Alliance One International Inc, who rationally act whenever there is a problem at the company or their departments (Alliance One International Inc., 2018). They focus on assessing the situations and come up with practical solutions to help the company to continue to grow and perform better.
Recommendation
It is recommendable for Alliance One International Inc to adapt path-Goal theory as an effective leadership model. This leadership model will help the leaders to focus on improving their juniors to achieve their goals. If every leader pays more attention to his or her area of supervision, it will be easy to understand the needs of the employees and attend to them. As a result, the employees will be able to record improved performance.
It is also recommendable for Alliance One International Inc to introduce more products and services in the market, to align operational needs with business strategies. Competition is the main challenge at the local and interactional level, which means that the company must create a difference. It is also recommendable to create differentiation in its products, and adjust prices sometimes. Lastly, there should be diversity in the company. All employees, including the marketers, should have different backgrounds and achievements.
References
Alliance One International Inc. (2018). Alliance One 2018 Annual report. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_AOI_2018.pdf
SAGE Publications, Inc. Contingency Theories of Leadership. Retrieved from http://study.sagepub.com/sites/default/files/reference6.1.pdf