SWOT Analysis For Organic Food Industry Essay.

1. The intended strategies could be defined as the company's strategies to improve its market position or develop itself (Hammami 2019). This strategy is described in detail about the business plan. In contrast, emergent strategies could be stated as a pattern of actions developed over time within an organization due to the absence of the company mission and vision (Kudesia 2021). This attitude is generally seen when a company or organization has entered a new market. And finally, the third type of strategy is the realized strategy (Höhler and Kühl 2021). This strategy defines all the strategies that were successfully implemented and successfully executed. The realized strategy included both emergent and intended strategies.

Porter 5 forces

Power of customers- The  bargaining power of the  customers are very high due to  a lot of available options

Power of suppliers – It is very high as the organization's store has very limited suppliers groups.

The threat of Competitors- Many competitors are already present in the market.

The threat of new entrants- Due to a high competition being  present in the market, the threat of new entrants is very less

The threat of substitution- This is also very high as there are multiple similar products available in the market

PESTLE

Political environment – is very supportive of this business as this improves economic activity within the country.

Economic environment- The impact of the Covid-19 has reduced the buying power of the customers on an international level

Socio-cultural environment- The growing importance of health and change in fooding habits has shown a rise in organic food

Technological- Digital marketing would create a huge opportunity

Environment- Organic food industry has a very positive  impact  on the environment

The above segment has clearly defined the major opportunities and threats that the company may face during its operations. The mid-term opportunities of the company are  as follows

• • In recent years the importance of health has risen significantly. People now prefer to have food grown with the use of chemicals and inorganic fertilizers (Nedumaran 2020). By addressing this need and marketing their production of organic food products on an international level, the company clearly satisfies the critical success factor of addressing a social need.
  • The COVID-19 pandemic has shown exponential growth in terms of online commerce. This resulted in creating many opportunities for the company to expand their market internationally and operate much more efficiently. The use of e-commerce has also ensured that the company could connect better with their customers providing a greater value (Nedumaran 2019). As per CSF wide reach of an organization is also an important part of success.
  • In recent years, people have become more concerned about their impact on the environment. This greatly defines and dictates their buying behaviour, even in food and beverage. This becomes the key motivation for everyone to change towards a sustainable form of food and beverage, which in this case is organic food. Thus, the company could further promote its product using this strategy to reach out effectively to its customers (Senyshyn and Kundytsky2019).

Critical success factor

• Wider Reach- as the company expands their business they  would improve  their reach to a wider range.This ensures a wider variety of customers  and  higher income.
• Addressing Social needs- The business address the rising requirement  of  healthy and chemical free food  in the market. Thus it becomes a critical success factor

Many mid-term threats have also been identified, which would greatly impact the company's growth. The company's SWOT analysis has already revealed the company's threats. The threats  are as  follows

• The first major threat that the company is facing in this midterm progress is the presence of a huge number of competition in the market. Organization Farmdrop and Planet organic are currently active in the market (Federico 2018). These companies have created a huge market base and have almost similar products; therefore, creating a brand name and retaining market position becomes very difficult for the company.
• The next major threat that the company is facing is the sudden outbreak of the covid-19 pandemic. As the pandemic broke out, many economies fell, resulting in a loss of employment, resulting in a significant loss of buying power of the customers. It is known that the products of the company are quite highly-priced. Therefore, it also resulted in a fall in the number of customers.
• Finally, the third threat that the company is facing is the imitability of the product. It is a well-known fact that organic food products and beverages and not very e rare and easily differentiable from other company products; therefore, they could be easily imitated by other competitors. Thus, the company needs to establish a strong customer engagement strategy to establish a strong relationship with the customers and create strong brand loyalty.
• The company mainly focuses on customer intimacy to market their products, but when they change to online platforms, they lose their personal connection with their customers. Therefore it would put a sign on their CSF that is promotion.

It has been stated that the company has focused Great Value on providing customer intimacy in its fast dealing with customers. The company has created a very good value for the customers and has raised their expectations. The company has focused on creating a strong relationship with the customer's enhancing customer loyalty (Budur and Poturakl 2021). However, the expansion has resulted in significant future threats and weaknesses for the organization. It is a well-known fact that expectations of the customers become the basic benchmark of any organization to retain the customers. Customer expectation is directly related to customer satisfaction. If a product or service fails to meet the expectations of the customers, then customer satisfaction is sure to go down (Godovykh and Tasci 2021). In this case, after creating a great value for the customer, the company has significantly raised the expectation of the customers, but keeping in mind the current situation and the lack of funds of the organization, it becomes very difficult for the company to maintain the same level of customer satisfaction as before. 

PESTLE analysis

During the recent covid-19 pandemic, the company's funds have been significantly reduced due to the prolonged lockdown. This greatly impacted the organization's smooth operations relating to meeting the Expectations of the customers (Pandey and Chawla 2018). The major problem with creating such an intimate relationship with the customer is that once the company starts growing, it becomes very difficult for the company to keep up with all the customers' expectations. Therefore, providing personalized support to each customer during the initial phases of the company's growth could result in a negative cycle. Apart from that, another major weakness that could be highlighted in this case is maintaining the relationship with their customers. The changing online platform will lead to the loss of customer intimacy and create a more generalized relationship.

To maintain a strong relationship and keep meeting the customers' expectations, the company must establish strategies that involve understanding the requirements of the majority of the target customers. And then starting to work upon creating strategies that help the company better meet the customers' expectations (Ieva, M. and Ziliani 2018). The company would establish various outlets worldwide to better connect with the target market and maintain their customer intimacy. Apart from that, the company could also establish various feedback systems in order to connect with their customers. The company would also utilize social media as a tool to connect to their customers as well as promote their services. Social media would help the organization pinpoint their customers and maintain customer intimacy through personal chats and chatbots. 

. The company should always provide honest opinions and honest messages about themselves through the customers to efficiently meet the Expectations and deliver high-quality service. Considering the changes in the external market and the desire to seek markets at the international level will be problematic if the company tries to maintain an intimate relationship with the customers as every country's values, ethics, needs, and requirements differ from the other. Therefore,  it significantly compromises the mission and the vision of the organization.

The first weakness identified through this vote analysis of the company is that the company has a very limited group of suppliers (Hubley Copeman and Woodall 2021). The limited group of suppliers provides the suppliers' group with greater bargaining power. As stated by porter's model, five forces diversifying the supplies group ensures that each individual supplier does not hold much power that may inversely affect the pricing strategy as well as the supply of goods to the organization. In order to ensure greater control over the supplies go, the company needs to create a strong relationship with the suppliers and maintain diversified and suppliers groups, ensuring a constant supply with a little bargaining power provided to the suppliers.

The next weakness that the company has found is that it has got a very nice type of market segment restricting its growth and development (Jin and Smith 2021). The company focuses only on one type of customer as well as promote the sales of only similar type of product. To expand the market in the international level, the company needs to identify the needs and requirements of different countries all across the globe and then develop a new product that meets the needs and requirements of that country. Apart from that, the company also needs to explore new market areas in order to expand themselves further in the market.

SWOT analysis of a company operating in the industry

The third and most significant weakness is that the company has a very poor promotional strategy (Untari 2020). The company has their presence only on their social media platforms, which is very weakly managed by the social media officials of the company(Khosiev 2019). The company has a significant number of followers on its social media handles; however, it has got no promotional strategy other than this. This strategy could easily be overcome by establishing a strong social media marketing strategy where the company code posts regular pictures as well as updates about the company products and various offers. This would improve the customer engagement of the company as well as attract more other customers. The customers could also be engaged through various broadcasts as well as through display advertising. This strategy would ensure that the company remains more visible to the targeted customers. The engagement of the customers would help the company understand the needs and requirements of the customer and better serve them.

2. Considering all the opportunities and threats, the company has got two different options. One is to increase the number of outlets in the United Kingdom and the second is to establish outlets internationally and expand over their commerce platform. Analyzing all the available resources and the market, this could be stated that improving the outlets in the U.K. as well as establishing outlets in international markets are both feasible, and the company should work to improve both the strategies. The increasing number of outlets in the U.K. concerns the company (BALAJI). According to the market, there is a high demand for organic foods and beverages. As identified in the PESTLE analysis, people are shifting towards organic foods.

Moreover  the company has got a very strong brand name in England. Apart from that, the company, even though hav e got a limted number of resources, is well accustomed to resource availability in the U.K. Therefore, establishing outlets in England would ensure the company has a lot of physical presence of itself throughout the country (Moorthy et al. 2019).

According to the Resource based model  the tangible  resouces  of the company  are  the products  that the  company wants to sell whereas the intangible product of the company are all the non touchable resources of the company. As per the VRIO analaysis of the company the  tangible  resouces of the   company are  highly imitable and are  not  very rare whereas  the  type of  customer  intimacy  shared by the company with their cutomers.  The company could  capitalize over this resource by opening various outlets of  the company. This would help the customers come in at any time of the day with their queries and get them solved and buy products by establishing the outlets in different areas across England. The company vote help in providing Physical evidence and act as part of a strong positioning strategy. Moreover, establishing them at different points across the country and hence their availability improves their positioning in the market. The physical outlets across England would also act as a promotional strategy as this would provide a greater engagement with the customers and expand their area of service. Establishing outlets throughout the U.K. would ensure the customers could take a look at the company's day-to-day function, establishing a strong faith over the friend, ensuring a strong Emotional selling quotient (El-Zein 2021). This would ensure that the company has strong brand loyalty and attract other customers. 

Critical success factors

Secondly, establishing international outlets would ensure the company would establish their presence at an international level. The company would also get significant brand loyalty at an International scale. The company would ensure opening outlets at an international level with e-commerce as its backbone strategy. This would ensure that the company does not pay a significant amount of cost in outlets maintenance and supply maintenance across the country. Moreover, the limited resource supply makes opening large outlets international market very difficult. At the same time opening internationally help the company to improve their market position as well as their brand image on an International image.  Creating a digital platform would help the company save a lot of money which the company invests in maintaining physical outlets of the company. As it is known that during the covid-19 pandemic,  there has been a significant rise in The E-Commerce sector, and more and more people are shifting towards buying products online. Therefore, opening their  International outlets would ensure that the company gets complete  International exposure, allowing them to develop for them and expand their market reach. The company. The company's expansion internationally establishes a strong relationship with international customers and ensures that the company gets a maximum market share from the unexplored market. As it is known that organic farming is not well established in many international countries, expanding the international market allowed the company to gain much competition, allowing it to generate higher profits. Is that that companies who penetrate the market  Before any other organization gain the maximum advantage over their competitors (Moorthy et al. 2019). The company can also diversify its supplies group by establishing itself on an international level. Apart from that, when the company starts to work at an international platform,  its products start to formulate themselves as products of the Global standard, improving customer satisfaction levels.

Mintzberg and Lampel's Ten Schools of Strategy FormulationResult could also be applied to get a detailed input and make further considerations. The first school of thought that has been selected for this analysis is the positioning school. Positioning school has been selected in particular because this mainly focuses on the industrial, economical angle similar to Michael Porter's five forces theory. As already found in porter's 5 forces analysis, there is no threat of new entrants in the market, which also forms the basis for the positioning schools key concept (Bal et al. 2019). The positioning school will help the organization determine their competition and their competitive position in the new international markets and the regions where they would open their new outlets. This school of thought would help the organization to get a complete understanding of all the competition already present in the market as well as help the organization to establish their stronghold in the international market (L.O. and SUGIARTO 2021).. Under The school of thought, various theories such as competitive advantage theory the BCG matrix is utilized (Henderson 1970). By utilizing the school of thought, the company would be able to better position their product in terms of availability and generate a greater income.  It also ensures that the company is well prepared for or facing any competition or resistance when penetrating the market on an international level as it is known that through has enabled countries from all across the globe to market their products internationally, creating a significant threat of competitors for the company. 

 Another entrepreneurial school also provides significant help for the company to formulate the strategies (Talaoui Kohtamäki and Rajala 2021). As suggested by the entrepreneur, School strategic management of any organization is a visionary process that takes place within the leader's mind on the management of the organization. As per the school of thought, the environment could be easily influenced and manipulated by capable leaders (Celik 2019). This strategy would ensure that the company is easily able to manipulate and formulate the company's external marketing environment and establish a strong marketing strategy for the organization. The company also brings various innovative products in terms of organic food and beverages in the market, which could completely change the Dynamics of the traditional food and beverage industry. Food gives the company an added advantage over the competitors as well as help it remain ahead. However,  it has its own weakness: this school is very risky and tries to make decisions based on tuition, only making it vulnerable to failures.

3. The above analysis of the company has helped to identify various weaknesses and threats that it may face while expanding in the external marketing environment. According to the PESTLE Analysis, the paper has identified that the  buying power of the consumers has greatly declined due to the pandemic, and Porter has highlighted the high competition in the market. Another major threat identified through VRIO analysis is that the products are highly imitable. Another threat is that they will lose customer intimacy if they expand on a huge scale. Thus, the paper has come up with a few recommendations that will help the company to manage its weakness and threats in a much more efficient way.

• The first recommendation to the company is that they need to improve their company visibility by working on their promotional strategy. As per the current promotional strategy, the company is present only on the social media platform. Even though the company boasts of a huge following, the company's social media profiles are not very active. Therefore, the company needs to become very active on their social media platforms in the company that would ensure greater customer engagement as well as increase their reach to their customers.
• Apart from that, the company could also promote their products through other digital platforms and tools. The company could also use affiliate marketing as a tool to help the company reach further to their targeted customers. The other tools include content marketing, such as blogs and articles to promote the company. The company needs to implement keyword and SEO  strategy  in  such  a  way  that it gains a competitive  advantage  over their competitors
• The company needs to open various outlets in different regions in order to create physical evidence of their store. This would also help the company to maintain their customer intimacy which is the USP of the store.
• The company would offer different discounts and cashback offers on the first purchase. This would help the company deal with the consumers' poor buying capcity.
• The company needs to incorporate a strong promotional strategy in terms of broadcast and display advertising. The display advertising would include putting up billboards and posters at various locations across the country. This would enhance the company's visibility outside of the digital platform and increase the chance of being visible to the customers. This would provide a greater market penetration in the international market as well as provider a greater advantage over their competitors.
• The next recommendation is that the company go into a strategic collaboration with farmers to enhance their relations with the suppliers. The company could provide financial support to grow supplies for the company. This strategy would provide two forms of advantage to the company. First, this would create a strong relationship with suppliers, ensuring a  lower supply cost and deterring competitors from accessing a similar group of suppliers. Apart from that, this also ensures that the company is ensuring that it creates a strong brand image of itself through this CSR  The company could win the customers' faith, allowing higher sales of the company.
• The next recommendation for the company is to segregate the customers according to the needs of the customer. As per the SWOT analysis, it has been found that companies market their products to their customers in a very generalized way that fails to effectively communicate the message to. Therefore, the paper recommended that the company needs to thoroughly study the customer and their needs. In generalizing the customer management strategy, the company has created higher  expectations  among the customers,
• The final threat to the company is that the company's products are easily imitable. The company is therefore recommended to improve their brand image and brand loyalty. The company could do this by providing exciting offers and customer loyalty cards. This would ensure that the customers return to the company to buy again. This improves the relationship with the customers to the company very significantly. This may lead to a further enhancement in the company's competitive strategy and help it become one of the global brands.

After these strategies get approval, the organization must follow various steps to effectively implement the strategies. At the very beginning, the higher and the top management would identify the various objectives required to establish the strategies effectively and do a complete analysis of all the resources and skills required for each and every aspect of the strategies. The main responsibility of effective implementation of all these strategies would lie in the hands of the operational manager of the organization. The management then distributes the roles and responsibilities of each and every department of the organization. The sales and promotional teams will execute the promotional strategies, which the sales and marketing manager will overlook. This department would identify all the effective social media platforms as well as all day activities of the target customers and then approach them through these platforms effectively. This department will look after the reach of their posts and the response they are getting through these promotional strategies. The marketing department would also conduct a thorough survey of all the possible locations where new outlets could be opened up throughout the U.K. and other areas. After pinpointing those areas, the marketing department would then provide a thorough report of all the locations and the organization's cost for implementing those strategies. The organization's finance department would be responsible for looking after all the fund allocation and expenses incurred by the company during this complete process. The finance management department would also suggest ways to reduce pauses in various areas. The human resources team conducts a thorough survey of all the departments and identifies the needs and requirements of all these skills and talents. Then, the organization would be responsible for supplying all those skills within these specific departments. The production manager and the production department would look after the product quality and other product-related needs. After all the propositions and approaches are finalized, the management department would pass on the employees' specific tasks. The promotional department would ask the digital marketing experts to create and develop different handles on this specified social media platform. Whereas the social media marketing department would be responsible for looking after, all the post reaches and their responses.

Similarly the technical team would be looking after the website and the online platforms through which the company would indulge in e-commerce activities. The sales department would also be responsible for looking after all the customers' feedback through various portals and will work closely with the social media marketing team. Another group of market analysts would completely monitor the market's changing trend and develop various new strategies and policies that would ensure that yeah organization keeps up with the changing face and the changing in the external environment. Moreover, the higher management would also determine various quality measures that should monitor departmental heads.

Reference

Alvarez-Mon, M.A., Del Barco, A.A., Lahera, G., Quintero, J., Ferre, F., Pereira-Sanchez, V., Ortuño, F. and Alvarez-Mon, M., 2018. Increasing interest of mass communication media and the general public in the distribution of tweets about mental disorders: observational study. Journal of medical internet research, 20(5), p.e9582.

Bal, M., Bhuyan, B. and Mishra, B.B., Conceptualisation & Formulation of Marketing Strategy A Literature Review.

BALAJI, K. Analysis Of Marketing Strategies And Their Influence On Customer Satisfaction Towards Retail Outlets In Chennai District.

Barney, J.B., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120. Available from:https://search.ebscohost.com/login.aspx?direct=true&authtype=sso&custid=ns019211&db=bsu&AN=9604164890&site=eds-live

Budur, T. and Poturak, M., 2021. Employee performance and customer loyalty: Mediation effect of customer satisfaction. Middle East Journal of Management, 8(5), pp.453-474.

Celik, T.S., 2019. The Rational vs. Behavioral Approaches to Strategy Thinking. International Journal of Contemporary Economics and Administrative Sciences, 9(1), pp.184-204.

El-Zein, H., 2021. Mastering Selling Skills: Making the most of service, communication, negotiation, and cultural and emotional intelligence. Hassan El-Zein.

Federico, M., 2018. The organic food market in China: Trick-or-treat for Italian companies? A SWOT analysis (Bachelor's thesis, Università Ca'Foscari Venezia).

Godovykh, M. and Tasci, A.D., 2020. Customer experience in tourism: A review of definitions, components, and measurements. Tourism Management Perspectives, 35, p.100694.

Hammami, H., Al-Omiri, M., Bouraoui, T. and Anam, O.A., 2019. Target costing: adoption and its relationship with competition intensity, intended strategy and firm size. Asia-Pacific Management Accounting Journal (APMAJ), 14(3), pp.220-245.

Henderson, B. 1970. The product portfolio [online]. Available from:

https://www.bcgperspectives.com/content/classics/strategy_the_product_portfolio/  [Accessed 16 June 2020]

Höhler, J. and Kühl, R., 2019. What Strategies do Dairy Companies Realize? Using Content Analysis to Examine Realized Strategies in the Dairy Industry (No. 2240-2019-3018).

Hubley, J., Copeman, J. and Woodall, J., 2021. Practical health promotion. John Wiley & Sons.

Ieva, M. and Ziliani, C., 2018. The role of customer experience touchpoints in driving loyalty intentions in services. The TQM Journal.

Jin, Y. and Smith, J.T., 2020. Manufacturer power over suppliers: scale development and validation. Journal of Manufacturing Technology Management.

Khosiev, B.N., Ostaev, G.Y., Kontsevoy, G.R., Suetin, A.N., Sokolov, V.A., Antonov, P.V. and Suetin, S.N., 2019. Development of a brand promotion strategy: management accounting and comprehensive analysis. Indo American Journal of Pharmaceutical Sciences, 6(5), pp.10060-10068.

Kudesia, R.S., 2021. Emergent Strategy from Spontaneous Anger: Crowd Dynamics in the First 48 Hours of the Ferguson Shooting. Organization Science.

L.O., P. and SUGIARTO, S., 2021. Strategic Planning in SMEs: A Case Study in Indonesia. The Journal of Asian Finance, Economics, and Business, 8(2), pp.1157-1168.

Moorthy, S., Chen, Y. and Tehrani, S.S., 2018. Selling your product through competitors' outlets: channel Strategy when consumers comparison shop. Marketing Science, 37(1), pp.138-152.

Nedumaran, D.G., 2019. E-Marketing Strategies for Organic Food Products.

Nedumaran, D.G., 2020. Consumer Perception and SWOT Analysis of Organic Food Products.

Pandey, S. and Chawla, D., 2018. Online customer experience (OCE) in clothing e-retail: exploring OCE dimensions and their impact on satisfaction and loyalty–does gender matter?. International Journal of Retail & Distribution Management.

Senyshyn, O. and Kundytskyj, O., 2018. Application of SWOT Analysis Method in Forming the Organic Farming Development Strategy as a Basis of Success of the Food Industry in Ukraine. Journal of Management and Finance, 16(1/1).

?rednicka-Tober, D., Kra?niewska, K., Bara?ski, M., Rembia?kowska, E., Hallmann, E. and Kazimierczak, R., 2018. Swot analysis of the Polish organic food sector in the context of its impact on the environment and human health. Journal of Research and Applications in Agricultural Engineering, 63(3).

Talaoui, Y., Kohtamäki, M. and Rajala, R., 2020. Seeking'Strategy'in Business Intelligence Literature: Theorizing B.I. as part of strategy research.

Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.

Untari, D.T., 2020. The role of information technology in promotion strategy. Case in taman mini Indonesia indah and ragunan, Indonesia. Journal of Environmental Management and Tourism (JEMT), 11(04 (44)), pp.960-964.