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 seasons •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