As for weak points those include first of all high financial leverage which is a repercussion of wide expansion of “Sibirsky Bereg” on the foreign markets. This leverage may limit the company ability to construct a plant and provide the necessary communication coverage in France. Another weak point is that the company itself and its brands are not known on the target market so it will be difficult for it to keep on the market. Also the company has never dealt with French market so it has no knowledge of the market. Finally dried crusts is the product that is easy to copy, so all communication costs of the company headed at creation of the new product category may be utilized by the other companies.
Opportunities |
Threats |
Rising healthy trends (O1) |
Deeply ingrained meal traditions in France (T1) |
Growing pace of life (O2) |
Loyalty to terroir (T2) |
Decreasing expenditures on eating-out (O3) |
Decrease of kids’ pocket money (T4) |
Entering B2B market (HoReCa, Kiosks, etc.) (O4) |
Introduction of healthy menus in fast-food restaurants (T5) |
Now a few words about how the French environment may affect the plans of “Sibirsky Bereg”. The opportunity for the company may be the rising healthy trends in France. Dried crusts are healthier than for instance crisps, which may be used to promote the product. Besides, there is a growing pace of life in France implying the heavier usage of fast-food products. Moreover one of the effects of financial crisis is that the French are spending less on eating out so they get hungry and have no ability to eat at home, they are more inclined to buy snacks. Furthermore there may be an opportunity for the company to enter HoReCa sector the net of which is quite widespread in France.
As for threats, the most important of them is the meal traditions that are deeply ingrained in France. People in France tend to stick to their eating habits and it may be difficult to persuade them to try a new product. Particularly as a consequence, the French are also highly loyal to the products that are produced in the neighborhood. Moreover again as a consequence of the crisis the French give their children less spare money, so one of the potential target audience of the company has less money to spend and as a result are less likely to buy our product. Finally there may be a threat of wide introduction of healthy menus in fast-food restaurants, which may deteriorate our selling proposition by creating a substitute of our product.
Now we would like to proceed to dynamic SWOT.
Leverage (O→S) |
Vulnerabilities (T→S) |
Ease of collaboration with business partners (S5 - O4) |
Decrease of importance of healthiness of the product (T5 - S6) |
Increase in sales (S6 - O1) |
Aggravation of acceptance of the product (T1,T2 - S3) |
Increase in situations of product usage (S7 - O2, O3) |
Reduction in consumption (T2 – S6, S7) |
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