Strategic Plan The mineral water market is highly competitive, so Deerside will require a comprehensive strategy in order to excel in the marketplace. There are a number of different theoretical approaches that can be taken in order to understand the strategy that the firm should undertake in order to carve out its niche in this market. Before working with these approaches, Deerfield management needs to understand its product and the consumer base for mineral water in general. The product is a mineral water from the Republic of Georgian. As there are few Georgian people in the U.S., there is no inherent appeal to this water on the grounds of its national origins. The primary appeal of this water is expected to be the content of the water. This water is rich in ingredients that have been proved to be good for the human digestive system and the prevention of colon diseases. The company cannot trade explicitly on this benefit without undergoing the full application process from the FDA's dietary supplement laws as per the Dietary Supplement Health and Education Act of 1994. However, the company can advertise the ingredients of the water -- all being naturally occurring - without inferring any benefit. Consumers interested in supplements and natural medicine already are aware of the benefits of these ingredients -- it would be no different from a regulatory perspective as marketing a drink with acai berry juice. The product is, however, differentiated from other mineral waters by the presence of these juices. In addition, the water comes from the Republic of Georgia, a remote part of the world. Shipping from Georgia is difficult and must pass through the Black Sea, the Bosporus and the Mediterranean before crossing the Atlantic. This makes the process expensive for the company.

The first framework by which the strategy can be developed is...

Companies that pursue operational excellence do not deliver anything special with respect to product or service, but they do run a tight ship. Firms adopting this strategy often compete as price leaders. While Deerside needs to bring the water from Georgia effectively, it does not appear that the company will enjoy any special strategic benefit from doing so. Product leadership comes from companies that seek to win business by offering the absolute best product available. This could partially describe the Deerside approach, in that the product is special. However, Deerside is not as committed to innovation as this description implies. That said, Deerside does feel that there is potential growth in the industry from product line extensions. Customer intimacy is reflected in a very customer-centric approach. Unique needs are identified and satisfied. This could describe Deerfield's approach if the company wants to remain a niche market player. If Deerfield wants to compete for the mass market of mineral water, it may need to go beyond the core niche market of customer that will understand the value in the minerals that the water contains.
The second framework by which the strategy can be developed is the generic strategy. Michael Porter explains these as differentiated and low cost, either in mass market or niche market size (QuickMBA.com, 2010). For Deerside, the high cost of bringing the water to the U.S. would seem to imply that a cost leadership strategy is not reasonable. It is impossible to bring this water all they way from the Caucasus Mountains to the United States and sell it at the same price as water sourced locally. Therefore, a differentiated strategy will be used. The major issue for Deerside to resolve,…