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Ola Cabs SWOT Analysis
A SWOT analysis on Ola CABSFull description
SWOT Analysis Strength
Quality Uniqueness- flavorful and fresher tasting because craf t brewery is distinguished from standard industrial beers by their flavor and brewing styles High profit margin Exclusive image
Weakness New company, it is a new startup so it does not not have a link with distributors or suppliers. It may be difficult to convince and afford Higher price than mass-production beer Its beer is not nationally distributed. Craft beer targets only only local area. Quality of beers depends depends on the freshness. It cannot keep for for long time. Opportunity Consumer demand in craft beer increased. increased. Demand shifts from mass production beer consumption to craft beer consumption. It is called “Test revolution”. Because they want full-flavored full-flavored beers. Sales volume increased Only one competitor (Northampton Brewery) with the different target market. Beer industry- high growth, low failure. Low market concentration Barriers to entry. Because product is an experience, rather than a search good. It is difficult to be taken over by industrial industrial breweries because they cannot focus on small scale of production, inability to duplicate the craft brewed flavor. Threat Type of business- capital needed for start up is not substantial, beermaking know know how is widely dispersed so entering by other microbreweries or large microbreweries or imitators in the same area is easy Company may be taken over by mass-production beer manufacturers (they have high potential). It creates an existence of mainstream microbrand High substitution rates, it competes with all kind of beverages. Direct competitors are imports. imports. Indirect competitors are alcoholic drinks such as wines and non-alcoholic drinks such as juices, drinking water.
Table 1
Strengths
Opportunities
Strong brand image
Increased presence on the internet
Compete in volume compared to Coors
Emerging markets in Europe
Lite Beer taste
Emerging markets in Central Asia
Draft taste in cans and bottles
Emerging market in U.S. with ethnic
International presence
Cooperate with governmental rules and
Ability to purchase smaller breweries
regulations
Foreign investment
Environmentally conscious
Increased advertising budget
Strong marketing efforts for Lite Beer.
groups
Weaknesses
Threats
Weak brand identity over time – lack of
Government taxation increases
advertising focus and consistency
Government rules and regulations added
Not seen as high quality
Lack of dark beer line
Growth by closest competitors
Taste known as inferior to Budweiser
Lower priced imports and local
Seen as a mass producer
Preservatives make it seem inferior
Not associated with famous people
Products not significantly differentiated
Changing consumer preferences
from major competitors
Price wars from competitors
Small advertising budget compared to Anheuser-Busch
Loss of brand loyalty with Miller HighLife label
Undifferentiated products, as compared to close competitors
products
Increase in competition from other beverages (e.g. water, fruit juices, etc)
Table 2
Strengths.
Weaknesses.
Company Resources is a distinctive strength Diversification is a distinctive strength International Product Line seems not to be a distinctive strength. Name Recognition is a distinctive strength.
Weak Brand Recognition in Emerging Markets is a symptomatic weakness. Strong Competition is a structural weakness.
A distinctive strength can be interpreted as a core competency i.e. something that makes the organization competitive. Often a very successful organization may have only one such strength, but it is significantly exploited and yields success. A few distinctive strengths are quite acceptable.
A structural weakness is evident. These are areas in which the organization lacks a distinctive competency. This type of weakness should raise the alarm in the organization. It points to a lack of distinctive competency. These weaknesses are serious, because the core on which survival depends is lacking. This weakness alerts management to do something about acquiring skills or developing the organizational capacity in this area. Often competition will have the distinctive competency and are thereby a serious threat to survival. Structural weaknesses often indicate the direction in which the Business Idea for the future (the strategic vision) needs to be developed. This indicates areas of desirable development, in order to be competitive. You have symptomatic weaknesses and should therefore look for its underlying cause and remedy the situation before this cause becomes serious.
Opportunities.
Threats.
Emerging Markets is a current opportunity. Increased presence on the internet is a current opportunity. Focus on ethnic target markets is a current opportunity. Increased advertising is a current opportunity.
Increased Advertising from Competitors is an immediate threat. Governmental Regulations is an immediate threat. Governmental Taxation is an immediate threat. Changing Consumer Trends is an immediate threat. Lower Priced Imports is an immediate threat.
Current opportunities are evident. These are opportunities that the organization could seize without too much trouble and should consider moving in this direction. This is often a case of not being able to see the wood for the trees where one becomes blind to very available options, mainly because of habitual activities in familiar territory.
Short term (immediate) threats are indicated. These are typically within the next 12 months. If these have been identified it demands that management deal with the implications. Sometimes the only way to deal with these types of threats is by a significant strategic response. If this threat cuts to the core of the business activity it could well be evidenced as a structural weakness. Only by dealing with the fundamentals of the business process can the situation be remedied. The best advice is a constraint monitoring of the horizon for any smoke signals. A unfortunate implication of a short term threat is that it forces an organization into an almost crisis response, this by implication can result in reactive management. Too much of this kind of management reaction can habituate into crisis management. The admonition here is that management should rather engage in excellent planning to foresee threats well ahead of time. T hreats are often from the external environment and are often ignored by the preoccupations with operational matters.