Wednesday, November 17, 2010

FINAL PROJECT: Situation or SWOT Analysis

Strengths: We have a strong management and marketing team behind us, as well as a strong advertising agency. The product is processed carefully and responsibly to avoid health issues from the consumer. Before the product is shipped, we have specially trained workers who finalizes the product to make sure we have the right amount of alcohol. Also, the product was carefully priced to make a good quality beverage actually affordable.

Weakness: The Company’s biggest weakness would have to be time management. Since the product is carefully processed and managed responsibly, that may throw us back even with multiple workers. We can’t necessarily hire more workers to work faster because that would shorten the profit, thus throwing the company out of business. As long as we keep having a strong management team, this problem should be avoided, for the most part.

Opportunities: There isn’t a more perfect time to hit the market with our brand of beer. Our biggest competitor, the Four Loko brand, has recently been in trouble with the law. The beverage is a mixture of caffeine and alcohol and because of a recent lawsuit, they are ordered to take the brand off the market until their non-caffeine version hit the market. This is a wonderful opportunity to flood the market with a 12% alcoholic beverage since consumers wouldn’t be able to purchase Four Lokos. Consumers will walk into stores and see a 32oz and 40oz of 12% alcohol and be ready to go crazy. It gives us the opportunity to capture consumers in our beverage instead of the Four Loko brand.

Threats: As said before, the Four Loko brand is our biggest competitor. Four Loko hit the market and exploded! They’ve recently caught a lawsuit for mixing caffeine and alcohol together which caused them clear off the market. Four Loko is still a threat to us because they’re supposed to come back to the market but just without caffeine. Because there’s so many fans of the Four Loko brand, they have the potential of whipping us out the market.

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