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TOWS ANALYSIS

The document outlines the strengths, weaknesses, opportunities, and threats (SWOT) faced by a company in the beverage industry, emphasizing its strong brand presence, market share, and reliance on intellectual property. It discusses various strategies for growth, including market penetration, product development, and international expansion, while also addressing challenges such as raw material price fluctuations and competition. Additionally, it highlights the importance of innovation through backward and horizontal integration to enhance efficiency and adapt to market demands.

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parneciohazelann
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0% found this document useful (0 votes)
12 views

TOWS ANALYSIS

The document outlines the strengths, weaknesses, opportunities, and threats (SWOT) faced by a company in the beverage industry, emphasizing its strong brand presence, market share, and reliance on intellectual property. It discusses various strategies for growth, including market penetration, product development, and international expansion, while also addressing challenges such as raw material price fluctuations and competition. Additionally, it highlights the importance of innovation through backward and horizontal integration to enhance efficiency and adapt to market demands.

Uploaded by

parneciohazelann
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. A robust and well- 1.

The company experiences


regarded collection of sensitivity in its sales to
brands, underpinned by changes in pricing,
products known for their indicating that consumer
superior quality. demand is responsive to
price fluctuations.
2. Extensive accessibility of
products from small and 2. San Miguel Corporations
medium-sized businesses operations and sales are
(SMBs), with production influenced by seasonal
facilities strategically patterns, causing
located near consumer fluctuations in business
markets. activity during different
times of the year.
3. Impressive size and scope
of operations, underscoring 3. The company heavily
the company's vast presence relies on trademarks and
in the industry. proprietary rights,
emphasizing the
4. Sustains a formidable significance of safeguarding
position as a cost leader, intellectual property.
ensuring efficiency and
competitiveness. 4. The company depends on
third-party entities for
5. A team of seasoned and various aspects of its
skilled managers with a operations, underscoring the
wealth of experience. importance of these external
relationships.
6.Strategic expansion efforts
aimed at widening the 5. The company's
coverage area and market performance is susceptible
reach. to alterations in its dealer
network and its own
7. Achieved remarkable workforce, necessitating
growth in both revenue, at adaptability in response to
an impressive rate of 18%, these changes.
and volume, with a 12.09%
increase. 6. An impaired reputation
poses a potential risk to the
8. Dominates the market company's brand and
with a commanding market standing in the market,
share of 95.6%, benefitting emphasizing the importance
from substantial economies of maintaining a positive
of scale. image.
Top of Form
7. The company faces the
possibility of its products
competing against each
other, potentially eroding
sales or market share.

8. There is a risk of losing


valuable international assets,
underlining the importance
of safeguarding these
overseas investments.

1.The economy is 1. Capture a large 1.Market Penetration -


experiencing robust growth, portion of the Enhance product visibility
with an impressive 6.2% industry growth through targeted
expansion, and the industry (S1,O1) promotional campaigns,
itself is thriving, posting a 2. Market persuasive sales techniques,
remarkable growth rate of Development - and the implementation of
7.9%. Expand to areas trade incentives. This
currently approach leverages strengths
2. The Filipino population is underserved (S1, like your existing market
witnessing a rising presence S2, S7, S8, O1, presence (W1), a skilled
on social media platforms O3, O6) sales force (W2), and your
and the internet, indicating a 3. Product established brand (W4) to
growing digital footprint Development – capitalize on opportunities
among the people. Introduce new like increased demand (O2)
products and and expanding market share
3. The culture of drinking packages (S1, S3, (O3).
among Filipinos plays a S5, O1, O3)
significant role in consumer 2. Segmented Pricing
behavior and market trends. Strategy - Implement a
pricing strategy that tailors
4. The practice of recycling prices to different market
waste materials is gaining segments. This strategy
traction as an important aligns with your existing
environmental concern and strengths in market
business opportunity. knowledge (W1 and W2)
and can capitalize on
5. There is a heightened emerging opportunities
focus on the conservation (O1).
and treatment of water International Expansion and
resources, underlining the
importance of sustainable 3.Diversified Product
practices in this regard. Offerings - Unlock growth
potential by venturing into
6. The global demand for international markets and
beer products, particularly in introducing a more diverse
North America, is on the range of products
rise, presenting an attractive customized to match the
opportunity for expansion unique cultures and
into international markets. preferences of target foreign
markets. This approach
takes advantage of your
existing strengths such as
global ambitions (W6), a
robust infrastructure (W8),
and positions you to seize
opportunities related to
international demand (O6).

1. Raw Material Price 1. Pursue Economies of 1. Backward


Fluctuations - The Scale and Adopt Integration through
company faces Returnable Bottle Vertical Integration -
challenges associated System - Strive to Consider
with the availability attain cost incorporating
and price volatility efficiencies by backward integration
of essential raw optimizing into your business
materials, which can operations and, strategy. This
impact production concurrently, involves owning or
costs and introduce a controlling the
profitability. returnable bottle supply chain
system. This elements that
2. Supply Surges and approach aligns with produce essential
Shortages - There is the company's raw materials,
a risk of being strengths in components, or
unable to meet scalability (S4) and inputs. This
sudden increases in addresses the threat approach capitalizes
demand or of raw material price on your strengths in
encountering volatility (T1). market knowledge
shortages in the (W1), resource
supply chain, 2. Build a utilization (W2),
potentially leading to Comprehensive and economies of scale
missed opportunities Streamlined (W4), and can
or disruptions in Distribution Network mitigate the risks
operations. - Create a robust and associated with
effective distribution volatile raw material
3. Competition from system that provides prices (T1) and
Local Alcohol wide coverage. supply chain
Producers - The Leveraging existing disruptions (T2).
entrance of both new strengths in market
and established presence (S2), this 2. Horizontal
domestic alcoholic strategy mitigates the Integration for
beverage producers, risks associated with Market Expansion -
offering products supply surges and Explore
similar to beer, poses shortages (T2). opportunities for
a competitive threat. horizontal
integration, which
4. Regulatory and involves merging
Taxation Concerns - with or acquiring
The company is competitors
vulnerable to operating in the same
Philippine laws and industry or market.
regulations, This strategy
including the leverages your
imposition of higher strengths in market
excise taxes, which understanding (W1
can have significant and W2) and can
financial help diversify your
implications. product or service
Additionally, offerings (W3).
political and social Additionally, it can
instability in the mitigate risks related
region may further to supply chain
exacerbate these disruptions (T2),
challenges. changing consumer
preferences (T3), and
5. Shifts in Consumer intensified
Preferences and competition (T5).
Buying Power -
Changes in what 3. International
consumers prefer or Expansion to Low
their purchasing Excise Tax
capacity can affect Countries - Consider
the demand for the expanding your
company's products. operations into
countries with more
6. Labor Disruptions - favorable excise tax
The potential for rates. This strategy
labor-related aligns with your
disruptions within strengths in market
the workforce may knowledge (W1) and
disrupt production resource utilization
and business (W2) and can help
operations. mitigate the impact
of high excise taxes
7. Influence of Major (T4) on your
Shareholders - The business.
ability of prominent
shareholders to
influence corporate
decisions and actions
could impact the
company's strategic
direction.

8. Conflict Among
Joint Venture
Partners - The
possibility of
disagreements and
conflicts arising
between the parent
company and joint
venture partners may
disrupt collaboration
and hinder decision-
making processes.
TOWS ANALYSIS ON:

Presented by BSMA 4D - Group 5


Juarez, Rylyn
Liguaton, Diovie Mae
Parnecio, Hazel Ann
Puedan, Kaye
Tacsan, Mary Jane

When does innovation take place?


Innovation can take place at various stages and under different circumstances,
Backward Integration for Innovation (W1, W2, W4, T1, T2): Innovation can occur when
a company decides to vertically integrate backward into its supply chain to secure a stable
and cost-effective source of raw materials. This could involve developing new processes or
technologies to enhance the efficiency and reliability of the supply chain.
Horizontal Integration-Driven Innovation (W1, W2, W3, T2, T3, T5): Innovation can
also be spurred by horizontal integration efforts, where a company merges with or acquires
competitors. This might lead to innovation in product offerings, marketing strategies, or
operational efficiencies as the company seeks to stand out in a more competitive landscape.
Innovation in International Expansion (W1, W2, T4): When expanding into countries
with lower excise taxes, innovation can manifest in adapting products or marketing
approaches to cater to the specific preferences and regulations of those markets. This could
involve product diversification, supply chain optimization, or new marketing tactics.
In summary, innovation can take place when a company strategically responds to its strengths
and the threats it faces, whether through supply chain optimization, expanding product
portfolios, or adapting to new markets. It's a dynamic process that often arises from a
combination of factors and strategic decisions.

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