Best Option for the Sagacity Tea's Growth

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Email to Kate Moran, the CEO of Sagacity Tea
To: Kate Moran.
Subject: Best Option for the Company’s Growth.
Dear Sir/Madam,
When any company is planning to expand its operations to cover a broad geographical region or enter the global market, it must be well-prepared to make the right decisions. Sagacity Tea Company is in this situation where it has to choose the most appropriate strategy that would enable it to continue growing not only in the United States of America (USA) but also worldwide. The company was established in 2007, when Kate Moran, the chief executive officer of Sagacity Tea, and Steve Benton, the product development and quality manager, started selling the ready-to-drink (RTD) tea in the local markets in Burlington, Vermont (Quelch and Handlin 4). For Sagacity Tea to expand and penetrate deeper into the tea industry, Moran must choose option five.
The most appropriate recommendation for Sagacity Tea is to continue serving its regional market for the time being to achieve a deeper market outreach or penetration instead of a broader market reach. Since the company started, it has focused on serving the Vermont region, which has enabled it to grow to the enterprise it is today. One of the reasons why a regional market is the most appropriate option is because Sagacity Tea will interact with customers directly and gather relevant information that would enable it to improve its products. Additionally, the company will open a 100-square-foot space in the Church Street Marketplace, which is an open-air mall in Burlington (Quelch and Handlin 7). The advantage of this option is that Sagacity Tea will be guaranteed of gradual market penetration one region at a time. Second, the company will not spend more money to implement this strategy as opposed to using brokers or distributors. Third, Sagacity Tea will interact with its customers directly and probably get relevant suggestions that would enable it to improve its products. The primary drawbacks of this strategy include the competition from new market entrants and difficulty convincing potential investors.
Although the other four options are feasible, they are not the best for Sagacity Tea. Option one, which involves accepting the proposal offered by the broker, Jim Shields, while negotiating his requirements, is costly. By implementing this ...