Wimm Bill Dann Swot

Wimm Bill Dann – SWOT Analysis Missing information from Resources & Capabilities research! STRENGTHS †¢Occupy leading position in the market ? 1? , ? 3? , ? 14? †¢Established Brand in Russia ? 1? , ? 3? †¢High quality products ? 1? , ? 13? †¢Diverse product basket ? 13? †¢Understanding of Russian Market ? 1? †¢Survivors, prospered during the financial crisis due to being the local producer, when imports struggled due to the weakness of the Rouble ? 9? †¢Entrepreneurial management: rented a production line in an existing factory to get started. ?9? Ambitious, experienced new people from outside the company hired for leading positions ? 13? WEAKNESSES †¢Lack of recognition abroad ? 9? †¢Lack of networks and contacts in foreign markets ? 11? †¢Lack of internal innovation ? reliance on M&A for new products ? 1? , ? 9? , ? 14? †¢Reliance on (primitive) dairy farmers ? 9? †¢Russian climate limits fruit supply to certain sea sons †¢Internally fragmented ? 9? †¢Weak financial reporting ? 1? †¢Finding & hiring qualified personnel in growing market ? 1? OPPORTUNITIES †¢Diversification into higher value segments, e. g. premium-range yoghurt, ogurt drinks, dairy deserts, soft drinks (e. g. sparking, flavoured water) ? 3? , ? 7? †¢Diversification into growing market for Baby & children’s food ? 7? †¢Diversification into non-directly related fields, e. g. ice-cream, chocolate, tea ? 3? †¢Acquisition of other dairies to get geographical coverage ? 1? †¢M&A in water to gain consolidated market ? 9? †¢Improve the supply chain (logistics, JIT delivery, order intake, IT) ? 11? †¢Operational efficiency improvements (at dairies) ? 9? †¢Changing market, increasing distribution through supermarkets (strategic customers) ? 2? , ? 15? †¢Low wages ? 2? †¢Abundant natural resources. E. g. gas †¢Joint venture, e. g. with Danone or Pepsi Co. to gain capital and distribution ? 10? †¢Growing Russian Market for dairy, baby food, water, drinks, confectionery ? 1? , ? 3? †¢Growing upper/middle class, greater supply of money available ? 1? , ? 3? †¢Increasing health consciousness ? 1? , ? 3? †¢Increased demand for premium products ? 3? THREATS †¢Unreliable, insufficient local supplies of milk ? 1? †¢World-wide reduction in milk-supply ? 6? †¢Regulation of milk supply in Russia ? 1? †¢Margins for dairy under pressure due to increase in raw milk prices ? ? †¢Price-sensitive consumers may start to prefer low-cost/low margin juice & nectar ? 1? †¢Increasing local competition in all sectors (Lebedyansky) ? 3? , ? 16? †¢Competition from foreign Multinationals, e. g. Nestle, Danone producing locally (increased demand for milk, lower costs of locally produced products ? decreased profitability for WBD) ? 1? †¢Increased price of fuel could impact transportation costs & profitability ? 1? †¢Increased cost of petroleum-based products may impact cost of packaging ? 4? †¢Political uncertainty ? 1? , ? 3? †¢Changeable regulatory environment ? 1? ? 3? †¢Corruption and crime ? 1? †¢Underdeveloped Russian banking system ? 1? †¢Unstable currency & exchange rate ? 1? References ?1? WBD Memorandum, February 2007 ?2? Data from PESTEL ?3? EUI Industry Forecast, Food, beverages and tobacco, Russia, January 2007 ? 4? Danone Company Report, 2005 ?5? Expert Opinion, Ian Kellett ?6? http://www. nzherald. co. nz/category/story. cfm? c_id=96&objectid=10439897 ? 7? http://www. cee-foodindustry. com/news/ng. asp? id=60598, http://www. cee-foodindustry. com/news/ng. asp? id=69136, http://www. cee-foodindustry. com/news/ng. asp? id=66563 ? ? http://www. cee-foodindustry. com/news/ng. asp? n=63088-unimilk-childrens-food-dairy-products, http://www. cee-foodindustry. com/news/ng. asp? id=60598 ? 9? WBD Case Study, GSB University of Strathclyde, April 2007 ? 10? http://www. cee-foodindustry. com/news/ng. asp? id=71380 ? 11? Original thoughts, assumptions based on data†¦ ?12? http://www. iht. com/articles/2007/04/04/business/east. php ? 13? WBD Company Presentation, 2006 ?14? http://www. flexnews. com/console/PageViewer. aspx? page=8603&str= ? 15? Supermarkets. doc research ?16? Competitive Situation_V2. doc research