Introduction Healthy potion is an existing business dedicated in producing and selling unique beverage made of some special concentrate imported from north-western China. Although the business is earning significant profits, there is a risk on the business for relying on a single product as its only main source of income. This essay will use SWOT analysis to assess the internal and external factors affecting Healthy Potion and also formulate a strategy to further expand the business whilst eliminating potential risks. It will also consider the financial implications facing the business and assessing which type of fund raising plan suits best for the business. Strategic Analysis In order to develop a successful business strategy, it is …show more content…
For example, a recession in the economy, or drought in China which results to the delay in production of goods might ultimately force the business to shut down. Healthy potion has several potential business opportunities which includes the growing market shares and developing new products. The business has been earning significant profits and have just recently overturned the startup capital cost in quarter 3 of 2016. This indicates that the company is in a good position and there is a high chance that it will perform steadily in the foreseeable future. Furthermore, the business’ weakness of having to rely only on one product for its main source of income could turn to be an opportunity for the business to develop other new range of product. Healthy potion faces threat of potential competition and production delay that may be harmful to achieving business objectives. The existence of positive economic profits through selling healthy beverage will attract new firms to enter the industry. As a result, Healthy potion will lose a portion of their market share and causing sales to drop. Furthermore, delay in production may also occur if the exporter of the special concentrate fails to produce a certain amount of the main ingredient. This may result into a further decline in sales revenue. Strategy for new business development Taking into
Businesses are affected by the economy and sometimes the economy can have a dramatic drop in countries causing issues for some business mainly due to 4 factors. These factors are inflation, Economic growth, Exchange rates and unemployment.
Bellamy’s Australia (hereinafter Bellamy’s) is a public company producing organic infant formula and baby food in the Australian food and beverage industry. In order to assess the current position of Bellamy’s, a comprehensive SWOT analysis was undertaken. Resulting from this, two strategies are presented assist Bellamy’s in maintaining advantages over its competitors.
Cranfield Inc. is a leading producer of juices for range of cranberry cocktails. After a market research experiment Cranfield Inc. has many different business decisions to make. One to introduce a new line called lite cocktail which requires space and machinery and will eat into sales of currently offered products. Or not to introduce the new product and lease out it’s space, or do nothing to save the space until it’s needed for its current product line.
This analysis is provided by the members of the marketing team at Natureview Farm, Inc., on behalf of Christine Walker, Vice President of Marketing. The purpose of this analysis is to provide a recommended course of action for the company to grow their revenues by 50% by the end of the 2001 through the use of SWOT analysis on the three recommendations proposed by the senior leadership at Natureview Farms. The findings will serve as the recommendation for Christine Walker to present to the CEO, Barry Landers.
The second part will present the SWOT analysis based on internal and external environment. The last section is to set the marketing objectives for developing the marketing strategies.
The SWOT-driven strategic plan is New Belgium’s Brewery (NBB) competitive advantage, the most important and the cornerstone of the company’s strategic focus (Ferrell & Hartline, 2014). The purpose of a SWOT analysis is to collect marketing information via a situation analysis which identifies the advantages and disadvantages of New Belgium’s Brewery (Ferrell & Hartline, 2014). A SWOT analysis provides a strategic focus for New Belgium’s Brewery marketing efforts (Ferrell & Hartline, 2014). The process of collecting information for the situation analysis is done by first identifying New Belgium’s internal strengths and weakness (Quast, 2013). As well as identifying New Belgium’s external opportunities and threats (Quast, 2013).
As you work on the assignment, consider why you have chosen one type of non-alcoholic beverage over another and the reasons for that choice. As you complete your SWOT analysis, be sure to include external factors such as industry / market trends and competition, and internal factors such as your capabilities or abilities to reach certain market segments.
BrewDog is a company that has gone from strength to strength in its short time since establishment. The company has been experiencing rapid growth over the past several years. Through extracting the relevant information from a SWOT analysis on the company, I will look at BrewDog’s strengths and opportunities, leading to analysis of competition, barriers to entry and the threat of substitutes in proposed future markets. Through this I will show what growth methods are not suitable for the company, and conclude with my recommendation that simultaneous expansion of the UK and foreign markets are the most viable growth prospects for the company. I will provide analysis and discussion to show the validity of this.
The high demand of nutritional liquid supplements means the industry has to be serviced with capacity, formulas and products, including product bottling and packaging and having liquid supplements in bulk containers.
One of the reasons why fruit juice is chosen to be the new product is the threat from the natural food trend. People are learning what is better for them and start preferring natural foods rather than nutritional supplements. They consider absorbing nutrients from natural foods is better or enough for them. Moreover, consumers are using beverages and food to manage health issues today. For example, many consumers are seeking foods like whole grains and avoiding trans fat and cholesterol to manage diabetes (Hartman Group 2015). The trend of inclining natural food has threatened the whole vitamins and supplements industry. The general public may not fully understand nutritional supplements as the company does. Medically, nutritional supplements
Business failure refers to a company ceasing operations following its inability to make a profit or to bring enough revenue to cover its expenses. A profitable business can fail if it does not generate adequate cash flow to meet these expenses. There are many factors that affect a businesses ability to succeed, including the consumer demand for the product and the surrounding competition within the operating market, however it ultimately comes down to the firms financial efficiency and its ability to cover
An opportunity exists for the firm to venture into new product lines like energy drinks and other culinary applications.
A strategic SWOT analysis, crossing internal & external analyses, in order to determine strategic directions for the internationalization of Espressamente.
Branding has been effectively used as a strategic tool for marketing by innocent smoothies and that helps the company to maintain its share in the market or in keeping its competitive position. Innocent has developed its brand image by providing excellent satisfaction, by being genuine, healthy and socially responsible in the eyes of their consumers and once the image is developed, they were able to attract the customers. It is because of brand and its perceived value that consumers are loyal and committed to the Innocent products and they do not look for any substitutes (Ginden, 1993). Customers also perceive it less risky in buying a brand product with which they are emotionally attached. It is more important for products like innocent drinks which the customers have to consume and which has direct impact on their health and body.
When the business has more work than it can handle is another warning of the enterprise not doing well. A lack of liquidity can also be a cause of business failure. Liquidity is the speed at which an asset can be converted into cash and if the company does not have enough liquid cash at its disposal, it can lead to their downfall. A new business venture that provides products or services at the cheapest price in a desperate quest for making sales is also a sign of struggle.