Business Strategy

 

Bargaining Power of Customer	High	Kalo has high bargaining power because they have deals with popular companies such as Shoprite and Good Guy Vapes.
Threat of Substitutes	High	The threat of substitution is high because there are a variety of different drink manufacturers from who customers can choose.
Bargaining Power of Suppliers	Medium	The bargaining power of the suppliers is medium because they manufacture the majority of their products.
Threat of New Entrants	High	The threat of new entrants is high because the required raw materials to get started is low.
Rivalry	Medium	The rivalry is pretty high since they compete with White Claw and Moon.

1. The competitive strategy that Kalo uses is producing better quality drinks in the specific niche of alcoholic and CBD beverages through affordable costs and better quality. Kalo seeks to address the five forces by marketing more effectively and taking and maintaining market share via a quality product.

2. Kalo cultivates its own inputs via indoor and outdoor grow operations based in New Jersey, which provides The full line of Kalo agricultural products include nonionic activators, oil activators, soil surfactants, and more. The formulations of Kalo develop receive rigorous testing by top research specialists and well-respected agronomists. Kalo’s distributes its drinks using Peerless Beverages Co. to provide all its flavors to stores all across the U.S. Kalo uses word-of-mouth marketing and organic testimonials to understand their consumer needs and wants. Kalo uses marketing research from campaigns, which have resulted in 2 Million impressions and 200+ influencer relationships built. 

3. Any example of an information system that is used is social media. Social media is especially important because social media allows Kalo to reach larger audiences than normal. With this increased awareness, data can be collected from tools on these platforms. 

4. A potential IS improvement could be an AI platform that collects sales data from partnered firms to be tracked and traced in order to produce more of the desired product as the demand changes.