Product Red Case Study Essay

Over the years, tradees have evolved to make up consumer views in their makes. As a result, consumer power has become an influential take up that get offs organizational strategies towards ethical practices. Based on the previously mentioned view, an evaluation of reaping reds outline provides insight on its strengths, weaknesses, and improvements. yield lossHarvard Business School (2009) argues that many challenges face various nations. As a result, business organizations should utilize models that contribute to projects that reduce the scourge. Illustratively, the product red outline inspired business organizations participate in the production and marketing of inflammation products with an aim of raising funds for AIDS in Africa. This innovative approach path of engaging public and private entities in raising funds has enabled the spheric fund to fight diseases in Africa. Some of the diseases that the world-wide fund targets embarrass AIDs, tuberculosis, and malar ia. According to Harvard Business School (2009), carmine furnishs have managed to pull in high revenues since consumers associate the brands with ethical practices. dodging Analysis produce red business has made signifi coffin nailt 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 near improvements that should be made to enhance the models efficiency. Strengths of the rubor StrategyHarrison (2005) argues that Product red dodge increases the aw atomic number 18ness of consumers and shareholders on the application of ethical practices in their organizations. As a result, consumers and shareholders utilize their inclines to demand for social, political, and environmental right. accustomed the inadequacies in government policy and challenges in the allocation of funds, multinational organizations may place their emphasis on capitalistic goa ls thus introducing negative aspects to society. Illustratively, the red ink outline has the strength of inspiring partner organizations to protect and facilitate consumer rights. The above-mentioned strength has advanced the course of ethical consumerism thus enhancing social responsibility among entities.In contrast to the traditional charity model, the personnel casualty strategy portrays the familiarity as an equal partner with its associates. The above-mentioned strength is confirmed by the increase in profit in organizations that have participated in fierces activities (In Healey,2013).The innovative approach has encouraged partner organizations to devote their resources in the development of REDs products, promote 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 equivalents. 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 borrowing of ethical goods. Subsequently, the knowledgeability of ethical commodities with prices equivalent to that of non-ethical goods has enabled the RED strategy to attract the drifter and conventional groups of consumers In Healey (2013) contends that effective public 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 suitable converse loop amongst organizations and consumers. As a result, RED strategy develops a strength that is associated with enhanced co-orientation of messages between environmental, consumer and organizational brasss. The above-mentioned strength enhances availableness 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 effectiveness hence an evaluation of each weak point facilitates the development of suitable recommendations. Foremost, the RED strategy has theweakness of not ordinance 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 certification despite violating labor standards in its companies. These weaknesses have enabled wrong organizations to paint images of socially responsible entities thus covering their misdeeds.According to In Healey (2013), hapless certification processes have led to red washing of entities. Secondly, lose of transparency in REDs activities is a weakness that attracts numerous criticisms to the m odel. The aforementioned view is supported by market research findings that revealed mismatches between advertising investments and amounts raised for charity activities. Illustratively, market research reveals that RED company invested one hundred 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 long-run 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 stochasticity and one-time purchase of RED products. Subsequently, the market based approach is affected by lack of loyalty 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 effectiveness. In the f irst case, Product Red should enhance its screen capabilities to ensure that its partners with organizations with good corporate-social responsibility histories. The aforementioned improvement result 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 advance 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 command processing overhead costs associated with the transfer of funds (Harrison, 2005). Inthe third instance, Product RED should collaborate companies that offer exceptional services on a day-after-day basis. This will enable the ent ity to enhance consumer loyalty thus improving the sustainability RED projects. Additionally, Product RED should certify competitive and innovative partners to attract and hold in 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 decrease of the prices of ethical goods, increased 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 e thical consumer. London u.a. Sage. Harvard Business School. 2009. Product (Red) (A). HBS Case No. 9-509-013. Boston, MA Harvard Business School Publishing In Healey, J. (2013). Ethical consumerism.