Paqui Chips Company External Analysis

 I would like to get a 4 pages to 5 , a strategies development for this company

notice: you did external analysis for me before 2 weeks ago for the same company.

and I would like to get at least 3 type of strategies , like low cost , focus , growth . and you will see the examples and explanation in the pdf .

but please make sure you follow the instructions .

Strategic development

The Paqui Chips Company deals in the chips and snacks business where the competition is high, and the switching cost of the buyer is minimal. Competitors like lays, uncle chips, bingo, potato sticks, etc., ran their business for many years and captured the huge market. They with their brand and various flavoured chips that they introduce according to the taste and demand of the market. Their effective marketing and multiple flavors develop the customers’ taste to get their chips (Strom, 2012).

Most of the time, it’s seen that the consumers of this chips snack product select the random chips and only care about the flavor like spicy, salty etc. and not give much attention to the brand of chips. But with the increase in health concerns, many people have become aware that these snacks are not much good for health. Because of the many artificial flavours, these snacks affect the digestive system of individuals and enhance obesity issues.

Consequently, the Paqui Chips is good in this situation and with the effective strategy, there exist a considerable chance that they attract many consumers and capture the vast market because it’s handmade chips and use the natural ingredients in making the different flavor snacks that are beneficial for consumers and not impose a negative impact on their health. To attain a competitive edge in this complex and highly competitive market, there are many strategies on which the company needs to pay attention to achieve high success. The major strategies are differentiation strategy, low-cost strategy, focus strategy and growth strategy.  Below each strategy is discussed briefly (Paqui Chips Company, 2018).

Differentiation strategy

It is right to state that in the market where the competition is high, and the available brands capture the huge demand, the best way for the new company and brand to attain success in this market is by using the intelligent and effective differentiation strategy. There exist various ways by which the company differentiate their products from the competitors like based on their expertise, market demand, market trend, offering eclectic flavour or using the different ingredients that attract the customers of the market (Mind Tools 2018).

The Paqui chips company, to capture the customers and to become successful, have to use the differentiation strategy smartly like in the market various flavor of chips are already available from the well-known brands like lays, uncle chips etc. so introducing a new flavor to differentiate themselves is much difficult for this they have to introduce some new flavors that are still not available in the market. So the best way for them to differentiate themselves from a competitor is to make handmade chips with natural products. This differentiation strategy helps them attract many customers, especially those who are chips lovers but avoid eating because of health concerns.

When the company differentiates its products based on natural ingredients and promotes them effectively, they attain a competitive advantage, and their sale and success in the market improve. They become able to capture the enormous market. Therefore, the differentiation of the product on the basis of its ingredients and making style is the best development and competitive strategy for the Paqui Chips Company to capture the huge market share and promote the product.

Low-cost development strategy:

The other effective strategy for the Paqui Chips Company for the development and attaining the high competitive edge in this complex market is through offering the products at the low-cost. In the snacks market, it is seen that the switching cost of the buyers is minimal and most of the customers are price conscious. So, by offering the quality products at a low cost than the competitors, there is a high chance for the Paqui Chips Company to attract customers and succeed in the market.

The company also offer the online delivery service of the chips to attract the consumers so through offering the free delivery and reducing its price of per packet they become able to grasp the attention of many customers and by this their sales volume improves as well. they also have to set their prices according to the market like in India the customers are more price conscious so offer them the product at low cost and in USA the customers are not much price conscious they are much health conscious because of the changing in the living trend so offer them the product at a reasonable price with high quality (Nagle & Müller, 2018). Consequently, the low-cost development strategy is also effective for the Paqui Chips Company to achieve the competitive edge and improve their market growth when they offer products to international customers.

Focusing Strategy

The focusing strategy is all about the company’s biasedness towards the aspects the whole firm depends on. In this case, the Paqui Chips Company focuses on the overall market for chips and the public’s most preferred flavors. The two things matter a lot, and the third most important thing is the pricing of the chips. Currently, the company is opting for the following flavors, which are:

  • Nacho cheese flavour
  • Sour cream flavour
  • Black pepper flavour
  • Salt flavour
  • Grilled chicken flavour
  • Jalapeno flavour

So these are the min flavors on which the company is mainly focused. The pricing set by the company is named according to the national and international market. It is essential to know that the company always focuses on the market dynamics and the customer’s choice of interest. Moreover, it also includes the buying power of the customer. Concerning these figures, the company finalizes the pricing aspect of the product, and the marketing strategy is made (Paqui Chips Company, 2018).

Every manufacturing company makes another significant focus and this unique focusing strategy. It is the sales target factor that is the prime focus of all. Here the company strictly monitors the production of chips, so the number of chips packets is estimated.

The targets are set in a daily, weeks, monthly and yearly perspective. The main objective behind this is to achieve those targets at a suitable time which would make the company earn considerable profits and in this way the company flourishes. Hence the focusing strategy plays an essential factor in running the business effectively and efficiently.

Growth Strategy

The Paqui Chips Company uses 7 steps for its growth strategy. The first step is the establishment of a value proposition. This is very important in defining the objectives of the company. This step includes the uniqueness of the product, which makes it different from other competitors. The second step is the identification of the customer. This consists of the customer’s choice of interests. I this case, the company consults the market surveys, and in this, the choice of flavors are asked by the public. So in accordance to their interest, the company makes the plans on introducing the flavor (Strom, 2012).

The third step is the specifying the key indicators. This includes the indicators which would help in enhancing the business. The fourth step in this regard is the verification of the revenue streams. This step caters to the pricing of the chips in both the domestic and international markets. The pricing factor defines the overall profit to be generated if the sales of chip packets meet the target. The last three strategies include the overview of the competition, focusing on the strengths and the investment in talent (Mind Tools, 2018).

The overview of the competition considers the strategies made by other chip manufacturing companies. The strategies are pricing, the flavours they are adding, and the competition’s growth. Focusing on strengths includes the plus factors of the company to boost its sales and generate more revenue. Therefore, the last step, the investment in talent, includes enhancement in the customer relationship and hiring new employees in which they will have skills to beat other competitors, which gives a company an edge over others.

Mathematical Models

The Paqui Chips Company conducts the analysis that uses the mathematical model to conduct the investigation—considering the first model, the forecasting model. This model is for predicting the trends in sales, and it calculates it through the extrapolation method, and the resultant answer gives the progress in sales of chips which is represented in the form of a logistic curve. The second mathematical model is linear programming. This model makes use of linear functions, and the company utilizes this technique for their processing of chips where certain constraints are kept in a linear region (Strom, 2012).

The third mathematical model is the critical path, and its job is to monitor the state of the overall status of the product. This is helpful for the company to monitor the processing of chips. The firth model is the decision theory. This model accounts for decision-making tools, and this aids in selecting the right decision to speed up the process. The fifth model in the waiting line specifies the waiting times of the chips to be packed after being appropriately processed. The sixth model is the Markov, and it is for making the changes in the system randomly concerning the current processing stage. The final model is the inventory, and it undertakes the financial constraints of the company. This includes the pricing of the product based on the market, along with the adjustments to be made.


Mind Tools. (2018). Porter’s Generic Strategies. Retrieved from

Nagle, T. T., & Müller, G. (2018). The strategy and tactics of pricing: A guide to growing more profitably (Sixth ed.). Routledge.

Paqui Chips Company. (2018). Retrieved from

Strom, S. (2012). Frito-Lay Takes New Tack on Snacks. Retrieved from The New York Times.

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