BUS MGMT

STRATEGIC MANAGEMENT BUS599164VA016-1202-001 WEEK 2 DISCUSSION

COLLAPSE

Uptown Swirl

Uptown swirl is a unique company that offers organic products to its clients who are aimed at buying health desserts and non-alcoholic beverages. The company is located in a very strategic area North Carolina where the demands for its products is very high. However, the firm faces a high competition from similar companies in this industry who are founded in this area or other international companies that have expanded here due to the demand. Therefore, it is important for Uptown Swirl to use the opportunities available to them to set up a big business that is focused on fulfilling the needs of the clients so as to mitigate the risks that are in the markets.

Strengths

The major strength of this company is that it offers a wide variety of products to the consumers which are sold at affordable prices. The numerous products are able to attract individuals from all demographic categories; the products produced by Uptown Swirl are able to cater for all the needs of the clients thereby bringing satisfaction. Due to the focus of the company to offer healthy beverages and desserts, the company is able to produce products which are of high quality as a competition strategy (Hidiroğlu, 2019). Through getting its raw materials from the local farmers, the company establishes a mutual relationship with the local community and thus increases their tendency to purchase the products that it offers.

Weaknesses

The main business of this company requires that the company preserve the products under low temperature which implies that a lot of money is spent to investing in refrigerators and freezers. In addition, these products cannot stay for long periods and thus the company has to ensure that they are consumed as fast as possible to avoid losses. The high competition posed by already established companies which are widely known in the region greatly affects this small company. The ingredients used in the production of these products make it hard for the company to maintain low prices for its products (David.et.al, 2017). The variety of refreshments that the firm produces requires a lot o labor costs which the firm is unlikely to afford due to its size of capital and business.

Opportunities

Uptown swirl has a chance to expand its business since the raw materials required in its production are locally found. The low cost of the ingredients saves a lot of money for the firm which helps in reducing prices and increasing the variety of products. The already established businesses in this industry have created a way for the Uptown swirl to thrive since the people are hard-core fans of beverages (Rothaermel, 2017). The newly created flavors by Uptown swirl will maximize its sales because many people are looking for new kinds of beverages and desserts. Interacting with local farmers and promoting livelihood in this area enables the firm to stand higher chances of being popular in this area and thus be able to promote its sales

Threats

There is a risk of Uptown swirl losing some of its targeted consumers to the already established brands in this locality which have thrived before the company was created. The increased variety of flavors introduced by the companies increases the costs of production due to the required capital in refrigeration which might hinder the firm from producing them. Threat of copied ideas by other firms is common which might pose great competition against uptown Swirl. Maintaining the production of organic products might pose a threat of having marginalized income in the company.