Friday, November 30, 2012

Market Analysis: Micro Level

SWOT Analysis

STRENGTHS
WEAKNESSES
  •  Different product with low mineral content (reputation based on UNESCO)
  •  Source of water: Lapland
  •  Product design
  • Brand positioning
  • Appealing promotional methods
  •  Niche and specific market segment, HORECA
  • Clear strategy on how to proceed, e.g. using certain distributors
  • Little adaptation needed
  •  Entrepreneurial and innovative owners with open mind and sense of humour
  •  Already established relations in some markets, e.g. in Abu Dhabi
  • Extremely small size of the company
  • Low bargaining power
  •  Few financial and human capital resources
  • High price compared to competitors
  • Low brand recognition
  •  Location of the water resource
  •  Lack of economies of scale
OPPORTUNITIES
THREATS
  •  Continuous growth in bottled water markets (value CAGR 2010-2015: 5.5%; volume CAGR: 3.7%)
  • Further demand for luxury products along with rising living standards e.g. in China
  • Increasing concerns on water safety
  • Possible trend/fashion factor
  •  Expanding HORECA sector e.g. in Saudi Arabia
  • Moderate  competition in the market
  •  Multinational corporations rule the markets
  • Different legislative and regulatory environment in different markets
  • Economic fluctuations affect the demand (esp. in HORECA sector)
  • Gaining access to distribution channels
  • Without an informed consumer base (water sommelier education), cannot reach full market potential

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