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Assignment 1: Company Description and SWOT Analysis

Marquise Daniels

Dr. Vernotto McMillan

Bus599 Strategic Management

July 24th 2017

NAB Company and Its Significance

Classic Drinks limited will be registered and incorporated as a business in the year 2017 aiming at venturing in the beverage industry, specializing in the non-alcoholic drinks such as naturally flavored waters and teas. The enterprise’s products are mainly based on nonalcoholic drinks and mobile bar services that are offered to a customer upon demand whenever they have events. However, the company usually purchases its supplies from major manufacturers and other suppliers within the country. The business will be distributing its services in Washington D.C. area and its environs (Hewings, 2017). The Directors are well experienced in the service industry and have been in the business for more than three years and also have a personal touch towards this investment.

Company’s Mission Statement

Mission-To be the reliable events solutions provider in the United States and beyond by offering first class, professional and cost-efficient services to our clients tailored to meet their specific needs at each event.

Trends in the Non-Alcoholic Beverage Industry

The beverage industry is one of the fastest developing economic segments in the world. Many individuals particularly those from the western-nations have ventured into this industry especially the non-alcoholic beverages. Additionally, due to the continuous and vigorous sensitization concerning the calories intake people are nowadays very cautious with the type of product contents they take (Bierman, 2011). Therefore, offering the market a non-alcoholic drink, that is the classic drink is a viable decision and is likely to prosper since there is already a high demand and ready market for the product. However, very few people in Washington DC are investing in this sector. Therefore, I have focused on seizing this opportunity. The budget is growing at a shocking rate, and there are numerous classes of societies from low-income recipients to high-income earners. However, the high and middle-income earners have been left behind by most of the sectors when they are evolving their products. More so not many companies have capitalized on the beverage economy to increase their profits.

Strategic Position

Market Segmentation- The products and services will mainly target the middle and the high income earning classes of people otherwise known as the high-end market segment. The Classic Drinks limited concentrates on the high-end market so as to capitalize on its sales and also to meet the needs of this part of the private market segment (Hewings, 2017). The high-end market is comprised of private persons who love things tailored according to their tastes and preferences. Targeting on this market group will help the Classic Drinks limited company to enjoy the first mover advantages. The company has established strong distribution networks within the city of Washington DC which will enable them to reach their customers; they have developed strategic advertising plans through broadcasting channels that endorse their services and emphasis their efforts on delivering better quality services that are affordable to clients in this market segment.

Company’s Distribution Channels.

One Level Distribution Channel-In such a type of delivery the company will directly avail the products and services to its key consumers. The company will have strategic suppliers across the marketplaces that will be selling the products directly to the clients. This distribution channel will help in enhancing a strong distribution network since the company will have the chance to create a good customer-company relationship. Additionally, the clients will access products at reasonable prices since there are no middlemen included in the distribution channel.

Possible Risks and Mitigation Strategies

Market Penetration

Acquiring a significant market share in the industry may be a little harder considering the already well-established companies like Coca-Cola Limited who already are offering nonalcoholic drinks (Doole, 2016). However, the firm will also concentrate on the flavors of its drinks and the packaging since most customers are at first attracted to a product due in part to its attractive presentation.

Huge Investment

Being a beverage industry the firm’s investment is quite huge, and failure of the business will lead to huge losses. To minimize the instance of the losing the investment, the company will ensure that its sales are maximized and that it has competent management and employees to conduct the operations.

Loss and Damage of Equipment and Facilities

The firm risks losing equipment during the events, and possible physical damage may result to the facilities during distribution and event sessions. Therefore the firm will ensure that once it has offered the mobile bar services to the various premises that their facilities are well taken care of, and inspection of the premises is thorough before they are taken to the premises and before being stored back.

SWOT Analysis for Classic Drinks Limited Company

S - Strength

W - Weakness

O - Opportunities

T - Threats

A survey of the interior and outer condition is critical in any business planning process. The natural components inside the firm are either qualities or shortcomings. The variables that are outer tends to be the opportunities accessible or the dangers the organization is confronting.

Strengths

Pricing-Classic Drinks Company prices its products and services mainly to suit the high-end market (Ferrell, 2016). By offering the nonalcoholic drinks at an affordable and yet a strategic price the firm will attract more high-end users and as well have great referrals from the customers.

Experienced Staff- Classic Drinks Limited will hire well-experienced team who will mainly have had experience in the same industry

Weaknesses

Classic drinks Limited has not been in the beverage industry for long as compared to its competitors.

Opportunities

Ready market - There are thousands of events being held daily both in Washington DC and beyond the borders of the city. Furthermore, every now and then people want to quench their thirst using nonalcoholic beverages.

Threats

Competition- There is stiff competition in the beverage industry from competitors such as Coca Cola Company and nestle limited

References

Bierman, H. (2011). Improving the competitiveness of the industry. Singapore: World Scientific.

Doole, I. (2016). International Marketing Strategy. Cengage Learning.

Ferrell, O. C. (2016). Marketing strategy. S.l.: Cengage Learning.

Hewings, G. D. (2017). Regional Industrial Analysis and Development. Routledge.