Mohamed Amr – 202302351 – BUS-3430/L3
Case 1: Granadilla
Issues:
1. Why did Granadilla pivot from selling men's boardshorts and women's bikinis to selling
Fresh Food and Vegetables?
2. How did Granadilla adapt to the new market while maintaining their identity and resources?
3. Which growth strategy did Granadilla Apply to overcome obstacles it faced during their
pivot?
Analysis:
Granadilla has started as a swimwear brand which sells men's boardshorts and women's bikinis.
In addition, they have expanded their business by starting to sell kombucha under the Sunn brand.
During the Quarantine, most companies have pivoted or started to have e-commerce to be able to
survive in the market they are operating in. Consequently, Metz and Duxbury, who are the founders
of the company, saw an opportunity in the food market as their lifestyle business was expected to
have a decline in demand as it is not an essential item and the new travel restriction regulations;
Moreover, their Kombucha product was suffering from decrease in sales due to the close of the
retailer. They chose the Food market as it was the only market that could accept new companies
and it was not affected by the catastrophe. Pivoting in their situation is a must but pivoting needs
to be correctly managed to be able to succeed as this pivot needs a cash flow; however, they do
not have enough cash flow as they had a decline in their business revenue. In consequence, they
have used their existing food production and packing facilities where they produced kombucha; in
addition, they have used their relations with logistics partners, who were working on the Sunn
kombucha brand. This consistency has helped the Company to adapt easily to the new market,
save its resources, and save its identity. Furthermore, they implemented their service quickly as
the first order was 48 hours after creating their service which helped them to take a part of the
growing market (e-commerce) easily. In addition, they had a fixed time frame that they were
committed to as this option was not available by their competitors. The growth strategy that
Granadilla applied when launching their new service was Diversification as they have entered a
new market with a new Product. This strategy has the highest risk as they need to build trust with
the new market customers and provide a good quality product.
Recommendations:
For Granadilla's new service to survive, they need to start having on-site shops, where customers
can buy from after the lockdown in South Africa ends. Moreover, they need to allow customers to
order by phone and allow them to pay in cash as it is more suitable for Gen X and before. Lastly,
they need to open delivery options for other towns rather than Cape Town.