Product Red Case Study Essay

Over the years, championshipes progress to evolved to incorporate consumer military positions in their practices. As a result, consumer power has become an influential force that directs organizational strategies towards near practices. Based on the previously mentioned view, an evaluation of increase reds schema provides insight on its vividnesss, weaknesses, and improvements. Product RedHarvard chore groom (2009) argues that numerous challenges face various nations. As a result, line of products organizations should use models that contribute to projects that reduce the scourge. Illustratively, the product red strategy inspired business organizations participate in the turnout and marketing of crimson products with an select of fosterage funds for AIDS in Africa. This innovational approach of engaging common and private entities in raising funds has changed the global fund to strife diseases in Africa. Some of the diseases that the global fund targets include AIDs, tuberculosis, and malaria. According to Harvard Business School (2009), loss coadjutors have managed to attract mellower revenues since consumers associate the brands with ethical practices. Strategy AnalysisProduct red business has do solid gains in inspiring organizations to produce commodities whose revenues can be contributed to ethical activities. As a result, an evaluation of the models strengths and weaknesses reveals some improvements that should be do to enhance the models efficiency. Strengths of the ablaze(p) StrategyHarrison (2005) argues that Product scarlet strategy increases the awareness of consumers and shareholders on the application of ethical practices in their organizations. As a result, consumers and shareholders utilize their influences to demand for social, political, and environmental responsibility. Given the inadequacies in brass policy and challenges in the allocation of funds, multinational organizations may place their fierceness on capitalistic goals and then introducing negative aspects to society. Illustratively, the Red strategy has the strength of inspiring ally organizations to protect and facilitate consumer rights. The above-mentioned strength has advance the course of ethical consumerism thus enhancing social responsibility among entities.In job to the traditional charity model, the reddened strategy portrays the companionship as an sufficient partner with its associates. The above-mentioned strength is confirmed by the increase in profit in organizations that have participated in REDs activities (In Healey,2013).The innovative approach has encouraged partner organizations to devote their resources in the development of REDs products, force the concept of ethical practice in business and generating additional benefits that simultaneously benefit the needy in society. Additionally, the RED strategy enables organizations to produce ethical products at prices that match their non-ethical equivale nts. The RED strategy has facilitated the production of cheap products thus reducing economic pressures on consumers. According to Harrison (2005), high prices associated with ethical commodities have been a hindrance to the espousal of ethical goods. Subsequently, the portal of ethical commodities with prices equivalent to that of non-ethical goods has enabled the RED strategy to attract the drifter and received groups of consumers In Healey (2013) contends that effective general relations are crucial in the adoption of ethical consumerism within a society. Subsequently, the RED strategy employs concepts of the public relations excellence-theory to develop a worthy communication loop mingled with organizations and consumers. As a result, RED strategy develops a strength that is associated with compound co-orientation of messages between environmental, consumer and organizational systems. The above-mentioned strength enhances availability of information among consumers thus p romoting ethical consumerism. Weaknesses of the RED StrategyThe RED strategy has several strengths that have enhanced it adoption in several organizations. However, the strategy has weaknesses that limit its potential hence an evaluation of each weak spot facilitates the development of suitable recommendations. Foremost, the RED strategy has the weakness of not regulating organizations based on a set of sustainability standards and social wellness. As a result, RED company certifies organizations that participate in un-ethical practices. For instance, Reds partner Foxconn received attestation despite violating labor standards in its companies. These weaknesses have enabled unethical organizations to paint images of socially responsible entities thus covering their misdeeds.According to In Healey (2013), inadequate assay-mark processes have led to red washing of entities. Secondly, neediness of hydrofoil in REDs activities is a weakness that attracts numerous criticisms to th e model. The aforementioned view is supported by market research findings that revealed mismatches between advertising investments and amounts brocaded for charity activities. Illustratively, market research reveals that RED company invested one speed of light dollars in marketing and advertisement but generated eighteen million dollars for charity(In Healey, 2013).The lack of transparency attracts criticism on REDs efficiency and credibility. This weakness may reduce REDs influence in the semipermanent since its opponents hold the view that donating directly to the needy is more effective. Thirdly, the RED strategy has a sustainability related weakness due to the randomness and one-time purchase of RED products. Subsequently, the market based approach is affected by lack of faithfulness among consumers hence its ability to cater for ARV needs in Africa may be jeopardized. Improvements on the RED StrategySeveral improvements can be made on product REDs strategy to enhance its eff ectiveness. In the first case, Product Red should enhance its screening capabilities to ensure that its partners with organizations with good corporate-social responsibility histories. The aforementioned improvement will enable Product RED to enhance consumer trust thus enhancing sustainability it the companys activities (Harvard Business School, 2009). In the second case, Product RED should enhance its access to financial reports from partner companies. Improved access to financial data will enhance transparency in associate companies since the right percentage is remitted to the global fund. In addition, Product RED should introduce channels that allow direct donations from individuals to affected individuals in Africa. This will increase revenues raised and reduce overhead costs associated with the absent of funds (Harrison, 2005). In the third instance, Product RED should collaborate companies that passing exceptional services on a daily basis. This will enable the entity to enhance consumer loyalty thus improving the sustainability RED projects. Additionally, Product RED should certify competitive and innovative partners to attract and retain consumers. This will promote sustainability the generation of funds. ConclusionEthical consumerism has led to the introduction of innovative concepts in business organizations. One of the innovative models that was introduced by Product Red with an aim of supplementing government activities in the fight against AIDS is the MBS. The market-based system portrays strengths and weaknesses that determine the adoption of the model among business entities. Some of the weaknesses and strengths include reduction of the prices of ethical goods, increase corporate responsibility among entities, lack of transparency and inadequate screening of partner organizations. Conclusively, an evaluation of Product reds strategy provides insight on its strengths, weaknesses, and improvements.ReferenceHarrison, R. (2005). The ethical consumer. London u.a. Sage. Harvard Business School. 2009. Product (Red) (A). HBS Case no(prenominal) 9-509-013. Boston, MA Harvard Business School Publishing In Healey, J. (2013). Ethical consumerism.