Strategy Survival Guide
Strategy Survival Guide
Strategy Survival Guide
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Structuring the thinking - SWOT<br />
In Practice: SU Alcohol Misuse Project<br />
The team constructed a SWOT analysis following some preliminary research and discussions with key<br />
stakeholders in order to:<br />
• Summarise the assessment of the strengths, weaknesses, opportunities and threats within the<br />
UK drinks industry<br />
• Provide an easily accessible framework for identifying the relevant commercial issues affecting<br />
the UK drinks industry<br />
• Build a picture of the general business drivers within the UK drinks industry<br />
• Crystallise key trends, issues and considerations.<br />
Strengths<br />
Weaknesses<br />
Internal<br />
1. Strong brand awareness, powerful<br />
international brands<br />
2. Multi-nationals have developed<br />
profitable scale economics<br />
3. Drinks brands are flexible and can<br />
be adjusted to reflect changing<br />
tastes<br />
4. Greater diversity of catering outlets<br />
and venues with bars have opened<br />
up to new markets for drinks<br />
5. Multiple grocers can give drinks<br />
large areas of display in the<br />
superstores<br />
1. Near monopolies or duopolies exist<br />
in many segments, making barriers<br />
to entry high<br />
2. Large multiple retailers have<br />
increasing buying power<br />
3. Production costs are relatively low<br />
leading to low cost imitations<br />
4. Exports for traditional British<br />
products are weak<br />
5. Pressure from Alcohol Concern etc<br />
Opportunities<br />
Threats<br />
External<br />
1. Consumption of some drinks is still<br />
lower in the UK than in other<br />
countries, leaving room for increases<br />
in per capita consumption<br />
1. Since production costs are low and<br />
marketing costs are high, drinks<br />
brands are always under threat from<br />
own label products and other brands<br />
2. Young consumers' thirst for novelty<br />
presents an opportunity for<br />
2. Alcopop’s cannibalising beer and<br />
cider<br />
continuos innovation<br />
3. Flavoured water cannibalising<br />
3. Further de-regulation of the licensing carbonates<br />
laws will extend the opportunities for 4. Contraband and legitimate products<br />
distributing drink in the on-trade bought across borders and present a<br />
threat to profitability<br />
5. Smaller companies are constantly<br />
faced with the threat that their<br />
launches might be overshadowed by<br />
large multi-national marketing<br />
budgets<br />
6. Mergers will be heavily supervised<br />
by government as the industry<br />
continues to consolidate<br />
<strong>Strategy</strong> <strong>Survival</strong> <strong>Guide</strong> – <strong>Strategy</strong> Skills<br />
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