Describe a SWOT (Strength, Weakness, Opportunity, and
Threat) analysis for the type of beverage you have selected, and for your company overall.
COMPANY DESCRIPTION
Mission
Healthy Quench Master’s mission is to promote customer health through providing healthy non-
alcoholic beverages to aid them in maintaining their healthy lifestyle. This is done through
providing drinks that are as natural as possible including freshly squeezed and blended fruit
juice, natural and fruit flavored yoghurt and clean water. The company realizes peoples’
commitment for healthy living and therefore targets this market by providing what they need.
Healthy Quench Master aims to be the preferred beverage brand for healthy living in the United
States. We plan to undergo voluminous expansion over the next few years, with branches
distributed in all major cities across America.
Industry trends
There is a major shift in the demand for healthy drinks and this has been identified as a great
opportunity in the non-beverage market. More people are joining the healthy bandwagon,
demanding more healthy drinks and drinking more water than before in a bid to control weight,
reduce lifestyle diseases and live a healthy life in general (Government of Canada, 2013).
Organic products which are less processed and drinks that act as on-the-go replacement for meals
including yoghurt and natural juice are bound to witness significant growth. The retail value by
2017 for organic beverages is expected to reach $ 1,199,300,000, a growth from $903,100,000 in
2011; hence promising a bright future for the business (Government of Canada, 2013).
The category of drinks chosen I based on the following:
High demand: There is an increased demand for more natural products by health conscious
individuals.
COMPANY DESCRIPTION
Healthy aspect: The drinks chosen include fresh juice, water and yoghurt, all which are natural
drinks and therefore likely to get market.
Cost implications: The cost of producing natural juice, water and yoghurt is lower compared to
processed drinks such as soft drinks and energy drinks among others.
Strategic position
The company’s strategic position will aim at owning the product category. As opposed to
competing generally with all players in the market, the company will aim at being the best in the
healthy drinks market and thereby capture the market as its own (Manhas, 2010). The aim is to
dominate the market through providing quality drinks that meet the expectations of the health
conscious individual. This will be attained through sourcing fresh organic fruits and milk for the
production of fruit juice and clean water for bottling. The company will strive to avoid sugar in
their products and instead use fruits as the main sweetener, unless requested by the customer.
Distribution channels
Given that the company is a fresh produce vendor, a majority of business will be conducted at
the point of production. In this regard, the company will establish outlets within the city at
strategic places that customers can access. Examples include busy streets and hypermarkets, with
an objective of targeting busy shoppers. The products, fresh juice will have a shelf life of one
day and will be sold as fresh as possible, meaning that it will only be sold at source. The water
and yoghurt will be packed and distributed through supermarkets, retail shops, restaurants, health
shops and gym canteens.
COMPANY DESCRIPTION
Risk faced by the business
Perishable products: Healthy Quench Master deals with highly perishable goods including fruits
and milk, which could pose a major threat in the event of contamination.
Regulations from food and drug administration: The FDA issues guidelines to companies
dealing with food and drugs to promote the health of Americans. Any new regulations impacting
the beverage industry would affect the company (Grant, 2016). The company for example may
need to answer the question on how its products can be proved to be healthy.
Utilities and services supply: The nature of products that the company deals with may be
affected by various factors including weather patterns and seasonal changes; creating a possible
risk of disrupted supply.
SWOT Analysis
Strengths
Product quality: The products at Health Quench Master are of high quality
Diversification: The Company will provide a wide range of products including fruit juices,
water, and yoghurt. This will capture a large share of the market.
Strategic positioning: The first store is situated in New York, a city known for high level
business activity and this translates into more business for the company.
COMPANY DESCRIPTION
Human resource competencies: The team at the Company includes individuals who have worked
in the food and beverage sector for years and are therefore highly experienced. In addition, the
high level qualifications required by the company will ensure that only the best candidates are
selected for the job.
Weaknesses
Financial resources: As a brand new company, Health Quench Master does not have adequate
financial strength and may require to source funds from external sources.
No brand position yet: Health Quench Master is newly established and is yet to attract the
desired customer base. This may limit its performance in the first few months and huge expenses
will be borne for marketing.
Untested strategies: The manufacturing and marketing strategies are yet to be tested and it
cannot be determined whether they will work as planned.
Opportunities
High demand for healthy beverages: There is an increasing demand for healthy products as
people become more health conscious in a bid to avoid lifestyle diseases. This is a major
opportunity for the company.
Fresh juice market: Individuals are increasingly demanding fresh juice on-the-go as opposed to
store-bought juice and the company is bound to deliver this through its outlets.
COMPANY DESCRIPTION
Extensive market: The Company’s plan is to spread its operations all over the United States.
Given the high population, there is adequate market for the products.
New products: The non-alcoholic drinks market is extensive and the company could utilize its
position to provide more variety.
Threats
Competition: There are numerous non-alcoholic beverage companies in the U.S including
CocaCola, Pepsi, Nestle, Minute Maid, United Juice, Tropicana, Ace Natural and 7 Up among
other brands. Competition from alcoholic beverages is also apparent.
New products: The market is an open ground and it is expected that more products will continue
to emerge. These could threaten the company’s existence.
Changes in customer demand: Possible changes in customer preferences would impact the
company’s market.
COMPANY DESCRIPTION
References
Abrams, A. (2003). The Successful Business Plan: Secrets & Strategies Successful Business Plan
Secrets and Strategies. Successful Business Plan. Palo Alto, CA: The Planning Shop
Government of Canada (2013). Organic Beverage Opportunities in the United States.
Grant, R. M. (2016). Contemporary Strategy Analysis: text and cases, 9th edn. Chichester, Wiley
COMPANY DESCRIPTION
& Sons.
Manhas, P. S. (2010). Strategic Brand Positioning Analysis through Comparison of Cognitive
and Conative Perceptions. Journal of Economics, Finance & Administrative Science,
