Problem Statement
The True Fruits company is a stable business that is currently facing the challenge of developing a strategic plan of international expansion to exploit opportunities for growth in a seasonal industry with very high threats of substitution and bargaining power of buyers.
SWOT Analysis
Strengths
1. Strong innovative leadership team
2. High quality smoothies that customers are willing to pay more for
3. Innovative marketing team
4. International distribution network
5. Market leader for smoothies in Germany
6. Use of exclusive, quality ingredients
7. Innovative production methods
8. Makes use of progressive technology and invests in new technology (high focus on innovation and market research)
9. High brand equity
10. Emotional affiliation with consumers
Weaknesses
1. Limited experience in expanding to countries outside the EU region
2. Businesss major dependence on its market in Germany
Opportunities
1. Franchise their business
2. Open retail stores
3. Expand in warmer temperature countries
4. Introduce a complementary healthy beverage thats not dependent on weather temperature?
5. Increase distribution channels in Austria
6. Employ economies of scale to manage costs of production
7. Distribute direct to consumers
8. Increase green product offerings and expand/diversity their product portfolio
9. Expand in emerging markets
10. Develop corporate clientele
11. Augmentation/develop new products for market where they already have loyal customer base
Threats
1. Industry has a tremendous threat of new entrants
2. Buyers substituting high price smoothies for cheaper options
3. Continuously changing consumer preferences
4. High price sensitivity of smoothies
5. Possible decrease in smoothie consumption
6. Highly seasonal industry
7. Low switching costs for consumers
8. Saturated market place
PEST Analysis
Political
Governmental monetary/regulatory support may be limited in new countries
Possible increase in company taxation in new countries could negatively impact their expansion. They have limited capacity to pass on a portion of these taxes to consumers as their smoothies are already priced quite highly
Economic
Disposal income of consumers
Increase in prices of fruits and vegetables
Inflation rates
Low/High GDP on new markets
Social
Changing consumer needs and preferences
Increased focus on health
High end smoothies - more criticising consumer base
Technological
Innovation
Sell directly to consumers through online retailing
Porter Five Forces
Bargaining power of buyers - High
Multiple product offerings by buyers (supermarkets etc) increase their buying power
Bargaining power of suppliers - Medium/High?
Threat of substitutes - High
Variety of substitutes and alternatives for consumers
Low switching costs for consumers
Threat of new entrants - High
Pressure to remain competitive as competitors increase
Competitive rivalry - High
Highly fragmen...
