Essay About Threat Of Substitutes And Availability Of The Substitutesexisting Competitors

Swot for Deep Root Distillery
SWOT ANALYSIS for DRDStrengths:Have a source of fresh applesProduce a quality and value added productsWorking by approval of all necessary regulationsPositive appearance of distillery in trip advisorUse of pure maple syrupWeakness:Unclear about the marketing budgetDependent on the tourism and visitors for most of the salesOpportunities:new opportunities by 2015 edition of food island partnership publicationPrince Edward Island was a popular tourist destinationPositive reputation for organic and high quality productsThreats:Availability of the substitutesExisting competitors in the marketPORTER’S 5 forces:Threat of substitutes:  In the aspect of spirits and liqueurs, the substitutes are available in terms of different flavor and variety. Different distilleries produce different variety of liqueurs. DRD focused on producing products using high quality organic fruits that leads to differentiation. So, Threat of substitutes is medium.Threat of competitors: There were few strong small wineries and distilleries in the region. These companies were mature and strong players. Prince Edward distillery received grant and opportunities to expand their business in the other nations. Threat of competitors is high.Power of suppliers: fruits are required for producing the different products of this industry. There is low power of suppliers in that region. Companies could get the suppliers easily for the normal fruits. Companies could get issue in getting suppliers of organic fruits.Power of buyers: buyers have high power because they have different alternatives. They can choice in the terms of price, quality, flavor, and preferences. They have many choices for these products in the industry.Threat of new entrants: business in alcohol beverages are emerging since last 20 years. Many new firms are entering the industry. Capital costs for start up is one of the barrier. Barriers for the new firms are few that results in competition for existing ones. So, threat of new entrants is high.