Diwai Frozen Juice Company SWOT Analysis

Introduction

People all over the world enjoy the product of Diwai Frozen Juice Company, and this has happened for over four decades. According to statistics, individuals around the world daily consume approximately 1 million frozen juices from Diwai. The significance of the non-alcoholic beverage is to provide a better taste, flavor and health nutrients for frozen juice lovers. Most individuals would like to buy long shelf life juice that has better taste and exhibits different flavors, and for this case, Diwai serves as the ideal company. The company targets clubs, stores, restaurant shopping malls, and lounges where both the adult and young generation would enjoy the non-alcoholic product over water, soda, regular juice or wine.

The paper will provide a detailed SWOT analysis of Diwai Frozen Juice Company and it entails the evaluation of strength, weaknesses, opportunities and threats facing the organization. The adoption of the SWOT analysis is due to the need to achieve the organizational goal (Ferrell & Hartline, 2011). First, there is a need to study the internal factors of the company, and analyzing the strengths and weakness. Second, we should consider opportunities, analyze every single threat and deal with them before they destroy the operations of the company. It is important to counter check and analyze the strengths of competition.

Mission Statement

Diwai Frozen Juice Company has a mission statement that portrays what the company is advocating thus providing it with a sense of direction to attain the stated goals. The mission is to offer beverages that refresh the world, brings inspiring moments of optimism and happiness and make a difference. The company is committed to ensuring the products offered are high quality and clients can enjoy thus maintaining high levels of expertise and professionalism. On the same note, the mission statement is essential to the company since it creates a roadmap.

The Trends in the Non-alcoholic Beverage Industry

The rate at which the beverage industry is growing is high, and it is due to the increased demand from the consumers. Similarly, beverage makers have realized the quality that customers demand hence producing products with better taste and flavors, low sugar and calories contents. Diwai Frozen Juice Company considers the health its customers thus providing them with frozen juice that has no added sugar. Also, we experience changes in the markets due to the emergence of globalization. The market is projected to grow from $1.58 trillion to $1.78 trillion between 2009 and 2015 (Banks, 2016). Most companies have indulged in creativity and innovations thus making competition stiff in the market. Besides, production innovation has created new demands for favorite drinks. From the estimates, the beverage volume rose to 30.9 billion gallons in the year 2014 representing a 2.2% increase (Banks, 2016). This was 0.1% decline in relation to the 2013 statistics. The increase was due to the high demands of non-carbonated drinks.

 

The data above shows that Coke is the leading refreshment beverage brands in the United States. Coca-Cola Company makes approximately 8.2% of the consumer product in the U.S market, and its annual sales contribution is close to $1 billion (Banks, 2016). Some of its brands include Coca-Cola Zero, Diet Coke, Dasani, Minute Maid, Sprite, and Fanta. With Diwai Frozen Juice Company, the increase in population, urbanization and income have played a critical role in the growth of the non-alcoholic beverage industry.

Diwai Frozen Juice Company Strategic Position

Diwai Frozen Juice Company manufactures non-alcoholic beverage for global markets, and it has a strong brand recognition across the world. Similarly, consumers globally have knowledge about the products offered, and they understand the company’s logo. Strategic position entails the company’s position in the future considering the ever-changing business environment (Hitt, Hoskisson & Ireland, 2013). Diwai Frozen Juice Company advocates for environment-friendly operations. It has created a solution to the conservation of the environment by reducing the size of the bottles. The move by the company is significant because reducing the bottle size lead to less raw materials and reduced wastage (Hitt, Hoskisson & Ireland, 2013). Second, the company engaged in creating sustainable packaging products thus reducing the size and materials used in the production of the products. These strategies helped to curb the distribution costs and lessen the weight of the products. Lastly, the company has embraced the best leadership and funds that helped it conserve the environment by recovering waste. Most consumers use plastic bottles and cans, and the company recommends that they should be brought back for recycling.

The Distribution Channels

Diwai Frozen Juice Company offers its services and products to the local communities and the global markets. The company has well-established destinations for its products, and due to multiple bottle entities and proper management, the company has a great ability to manage her worldwide operations. The company sells the syrup and concentrates to the bottling and canning operators, who will then manufacture, do the packaging and distribute the end products to the wholesalers and retailers. From the vending clients, the products are sold to the final end-users (Coles, 2011). Similarly, Diwai Frozen Juice is mostly sold in supermarkets, night clubs, cafes, restaurants, Automated teller machines (ATMs) and corner stores.

Three Types of Risk

Although the company is in her prime, it faces risks that threaten its operations. The three types of risks that the company faces include the following. First, the company faces a backlash against beverage companies in relation to the issue of obesity. Recently, the companies have moved a step in addressing the problem of obesity. Diwai Frozen Juice experiences increased lobby against the use of frozen juice concentrates that poses a risk to the company. Second, the company faces increased regulatory risk. Some states in the U.S have passed laws that forbid the manufacture of sugary drinks. For instance, New York City bans the sale of sugary beverages. Such unfavorable legislation has crippled businesses. The company is mitigating the risk by producing frozen juice that has no added sugar. Third, the company faces the risk of high competition. Many companies have ventured in businesses that deal with non-alcoholic beverages thus resulting in a stiff competition (Doole & Lowe, 2008). To overcome competition, Diwai Frozen Juice Company produces high-quality products, ensure there are healthy relationships with the customers and differentiate its products.

 

 

Diwali Frozen Juice SWOT Analysis 

Strengths

  • Low Operating cost
  • High customer reputation
  • Well established distribution channel
  • High employee morale

 

Weakness

  • Lack of strategic management system
  • Plant capacity has fallen
  • Lack of large number of alternative healthy beverage
Opportunities

  • Emergence of new and unexploited markets
  • Competitors are slow to embrace new technology
Threats

  • The emergence of new technology might change the market beyond the ability of the company to adapt
  • Continuous changes on consumer preference and taste

 

 

 

References

Banks, H. (2016). The business of peace: Coca-Cola’s contribution to stability, growth, and optimism. Business Horizons.

Coles, R. (2011). Food and beverage packaging technology. Oxford: Wiley-Blackwell.

Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London: Cengage Learning.

Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western Cengage Learning.

Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (2013). Strategic management: Competitiveness & globalization : cases. Mason, OH: South-Western, Cengage Learning.