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BUS599BirdsBeverageSwotAnalysis.docx
Bird's Beverages' Description and SWOT Analysis
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Bird's Beverages' Description and SWOT Analysis
Bird's Beverages is to be a chain of beverage joints based in Birmingham, Alabama but spread across the country. It will be a place where the finest quality cold and hot drinks will be available to all in a consistently convenient environment. Right from the selection of the premises, creating floor plans, and bringing the employees on board, the company is zealous about making the customer experience fulfilling and memorable.
Mission Statement
Bird's Beverages has a mission to become the premier producer and seller of soft as well as hot drinks in America. The company seeks to make a difference, create value, and refresh Americans in ways which keep them alert throughout their busy schedules.
The food and beverages industry is rather competitive, and Umehara (2018) argues that only the finest will succeed since a significant number of return clients stick with just a handful of top sellers. This is why it is imperative to ensure that the clients have an unforgettable experience; and they are motivated to talk about it with their friends, colleagues, and relatives (Mirasgedis, Georgopoulou, Sarafidis, Papagiannaki, & Lalas, 2014). If the clients find value in the products and spread the word, that will have saved the company a significant amount of resources, effort, and time necessary to make inroads into the market. Nevertheless, the company will still invest at least 10% of its annual revenue on marketing (Moroski, 2018).
Past, Present, and Future Trends in the Beverage Industry
In the past, clients would prefer sitting at a place until they have consumed their drinks and/or meals. Nowadays, consumers are consuming their items while on the go. This is why they search for convenient and quick beverages, possibly in single-portion packages. The idea is to either have them consumed quickly or stored discreetly (Hoppe-Spiers, 2018).
McClain (2015) argue that clients will be rewarding companies that are keen on sustainability initiatives. In this regard, Bird's Beverages will be utilizing environmentally friendly packaging. This is in an endeavor to reduce the organization’s carbon footprint and help the clients to do their part in reducing environmental degradation even as they enjoy their favorite drinks (Krishna, 2018).
In 2016, the nonalcoholic beverage market was valued at $967.3 billion. The anticipated growth is 5.8% between 2017 and 2025. The expected rise is attributed to the rise in disposable income, changing lifestyle, and population growth (Hajieghrary & Homayouni-Rad, 2016; Hoppe-Spiers, 2018). Therefore, the industry is expected to be valued at $1.60 trillion. The size of the industry in the US was $253.7 billion in 2016, and is expected to be valued at $419.64. This means there is a lot of potential for Bird's Beverages and hence it is a viable business endeavor (McClain, 2015).
The Approach to Attain the Strategic Position
The strategy will be to increase the number of outlets by about 7% annually. It is imperative to appreciate that while the clients might love the quality of Bird's Beverages, they may not wish to invest a lot of time and effort trying to locate an outlet. Plans are underway to establish if it would work if Bird's Beverages partnered with a couple of restaurants and sports venues to increase accessibility to its drinks. Of course, this is to go hand in hand with the plan to have the company’s own dedicated outlets.
The Risks Bird's Beverages Must Overcome
Food processing firms are subjected to rigorous regulations both at the federal as well as state levels. These regulations are expensive to meet, and it also take a significant amount of time to get the needed approvals (Hoppe-Spiers, 2018). For instance, the FDA Food Safety Modernization Act (2010) demands of all firms in the food and beverage industry to renew their registrations after every two years. The renewal is not automatic, and some of the firms go out of business. The government justifies the tough regulations with the argument that at least 128,000 Americans get hospitalized as another 3,000 die on a yearly basis as a result of foodborne diseases (Mirasgedis et al., 2014; Umehara, 2018).
In addition to regulations, Bird's Beverages will need to research and trust the stakeholders involved in the production, storage, and distribution of the products as well as ingredients. The supply chain has to be reliable, and also ensure safety of the products. There are market-based demands to maneuver too (Hajieghrary & Homayouni-Rad, 2016). For instance, if Bird's Beverages fails to adopt new technology, it might risk being edged out of the business. This is why a SWOT analysis is imperative since in addition to understanding the risks (which might fall under weaknesses or threats), the stakeholders might as well understand the opportunities and strengths which could be exploited to maintain a competitive edge (Hoppe-Spiers, 2018; Moroski, 2018).
Bird's Beverages’ SWOT Analysis
A SWOT analysis is important as it helps in determining if the business organization is stable or unstable. The stakeholders familiarize themselves with the internal as well as external factors which impact either on its failure or success. It is important while formulating strategies and or making preparations for probable threats, say, posed by the competitors (McClain, 2015). Therefore, the SWOT analysis is completed to enable Bird's Beverages to make informed strategic decisions, and hence increase the probability of success.
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Strengths Bird's Beverages is to offer a variety of drinks, and this will attract clients with varied tastes. It is geared to be a warm as well as welcoming atmosphere. The outlets will remain open for long hours. Quality and delicious drinks on offer |
Weaknesses Since it is a new entrant, there is lack of awareness. While efforts are being made to select prominent locations, this cannot be objectively determined until business operations have started (Krishna, 2018). The sampled locations have few parking lots. Many of the weaknesses can only be addressed by an experienced team of workers who are not only expensive to hire but also hard to come by (Moroski, 2018). |
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Opportunities With the social media, Bird's Beverages can work towards increasing its level of awareness. The market exists, and it is growing rapidly. The clients simply wish to know where they can get the products (Krishna, 2018). Indeed, the company can sustain its niche market by getting and remaining in touch over the social media.
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Threats Non-alcoholic beverages are everywhere nowadays. It is reasonable to believe that some competitors might have products of superior quality and/or even cheaper (Umehara, 2018; Mirasgedis et al., 2014). Some chains have more locations than Bird's Beverages can manage to have at the moment. Some major competitors have stores quite close to the sites being proposed by the Bird's Beverages’ stakeholders. Nevertheless, Bird's Beverages is committed to exploiting every opportunity to prove that its products are worth the effort and the cost. |
Conclusion
Bird's Beverages will implement integrated marketing communication and convince the clients that this is the place of choice. This is to ensure that all messages, actions, and products point towards the same understanding; which is Bird's Beverages is committed to delivering quality products and ensuring that the clients have value for their money. The company is not just selling products, but the experience as well. Furthermore, the stakeholders plan to offer the products and services at the lowest prices possible. Lastly, feedback from the clients is readily welcome.
Hajieghrary, F., & Homayouni-Rad, A. (2016). Physical, rheological, and sensory properties of non-alcoholic malt beverage formulated with date syrup. Carpathian Journal of Food Science & Technology, 8(4), 47–56
Hoppe-Spiers, J. (2018). Thirst Quenchers: Brown Bottling Group says on the cutting-edge of innovation and market trends to remain the market leader in non-alcoholic beverage distribution. Retail Merchandiser, 58(5), 50–53
Krishna, C.G. (2018). Starbucks communication strategies - more than just a cup of coffee. IUP Journal of Soft Skills, 12(3), 23–53
McClain, K. (2015). Squeezing profits. Restaurant Business, 114(6), 48
Mirasgedis, S., Georgopoulou, E., Sarafidis, Y., Papagiannaki, K., & Lalas, D.P. (2014). The impact of climate change on the pattern of demand for bottled water and non-alcoholic beverages. Business Strategy & the Environment (John Wiley & Sons, Inc), 23(4), 272–288. https://doi.org/10.1002/bse.1782
Moroski, R.J. (2018). Troester V. Starbucks Corp. -- What is a trifle, anyway? Venulex Legal Summaries, 30(7), 1–4
Umehara, T. (2018). Nonalcoholic fatty liver disease with elevated alanine aminotransferase levels is negatively associated with bone mineral density: Cross-sectional study in U.S. adults. PLoS ONE, 13(6), 1–16. https://doi.org/10.1371/journal.pone.0197900
