SWOT Analysis of Yorkshire Meat Company

SWOT analysis entails the analysis of Strengths, Weaknesses, Opportunities and Threats that affect the business (Porter, 2008). Strengths and weaknesses affect the internal environment while opportunities and threats affect the macro-environment of the company. They can also be categorized into negative (threats and weaknesses) and positive factors (opportunities and strengths). These SWOT factors are explained in details below:

Strengths

One of the strengths if Yorkshire Dales Meat Company is that it has a large market share in the markets it operates. In UK, the company is the second largest meet producer, and in USA, the company is the leading meat producer. Its market share in Ireland is also large enough to support the demand meat and cheese products. This dominance in the market gives the company an opportunity to win the loyalty of many customers compare to other own-label supermarkets offering cheese products. The company also offers lower prices than those of own-label brand. Low prices increase demand, hence boosting sales revenue and profitability. Furthermore, the company is also rich in human resources. It employs over 8,500 employees who offer services to customers. Human resources are important in enhancing the business brand and value-addition to customers (Needham, 1996).

Weaknesses

Despite having sufficient human resources, the company is poor in terms of strategic management and marketing. The strategies of the company are mainly focused on the product, leaving aside the interests of customers. In a competitive market like UK food market, focus on customers’ needs and wants is more significant than focusing on the product (Blythe, 2009). The Black Barrel Cheese product is not really different from own-label brand. Differentiation strategy is not utilized in the company. The company also uses poor marketing strategies that are mainly product-oriented rather than customer-oriented. It spends a lot in advertising and promotion instead of improving the qualities of the product to suit the attitudes and interests of customers and delivering them at the right time and at the right place for customers.

Opportunities

There is a significant growth in UK food retail industry due to increased demand of food products and drinks. This provides room for the company to grow and gain economies of scale. There is also a large population of affluent persons aged between 25 and 54 years (CIA World Factbook, 2013). This group of people demands food including cheese products. Such increased demand increases the sales of the company; hence boosting profitability and success of the product. High population in major cities including North Yorkshire enhances demand for retail products, especially food products.

Threats

Threats refer to macro-environment factors which cause problems to the operations and marketing opportunities of the company. One of those threats is competitive rivalry. The company faces rivalry from own-label brand in the market which offers similar products. The company may avoid the intensity of rivalry by providing unique and differentiated products that meet specific needs of customers. The second threat of the company is the decline of income and increased unemployment rates in UK. Unemployment rate of the country in 2012 was recorded at 8% (World Factbook, 2013). Unemployment and low income reduces the purchasing power of customers, hence reducing the profitability of such companies.

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