NABBeverage Company — SWOT Analysis
CompanyDescription
TheNew Age Beverage (NAB) is an American-based company located inThornton, Colorado. The company was established in 1994 bylike-minded business partners who were passionate about thedevelopments in the beverage industry and saw the need of taking analternative path of providing healthier choices of beverages as thealternatives to trending high sugar and calorie products. Utilizingtheir strong entrepreneurial skills, the partners set up severalbusinesses in different regions, combining knowledge on the marketdemands and trends, and sharing experiences and achievements to makethe company successful. The New Age Beverage Company (NAB) provides awide range of products, including alcoholic and non-alcoholicbeverages. The notable non-alcoholic products include war, tea,juices, sodas, and energy drinks. The company also provides coolers,sales sheet, barrels, and troughs and serves the grocery and retailstores such as schools, companies, convenience stores and drug storesand gyms. However, Tropic Lite juice is perhaps the product that thefirm prides on. Despite the historical successes, the company iscommitted to long-term growth and profitability. Of particularinterest is the position of the business to realize these goals (NAB,2016). This paper conducts a SWOT analysis of NAB Beverage Company,focusing on Tropic Lite Juice.
SWOTAnalysis
TheSWOT analysis for NAB’s Tropic Lite Juice presents variousstrengths and opportunities that the company may enjoy and leveragecompetitive advantage. However, the analysis also presents threatsand areas of weaknesses that will need to be checked to deliverdesirable results. The table below summarizes the findings on marketposition of NAB’s Tropic Lite Juice.
|
Strengths |
Weaknesses |
|
Focus on nutritional value Emerging strong brand and market presence Upward trend of sales and profitability |
Weak employee engagement practices Limited resources |
|
Opportunities |
Threats |
|
The promising demand for beverages from nutritional value Technological developments Strategic partnerships and alliances Internationalization |
Threats from established competitors Threats from alternative products Economic downturns Threats from new entrants |
Strengths
Itis noted that SWOT analysis of NAB’s Tropic Lite Juice revealsseveral areas of strength that the company can pride upon the sourceof competitive advantage. One of the influential areas of strength isits focus on the nutritional value. The company recognizes that thecontemporary society is inherently concerned about consuming productsthat contribute positively to their health. To be able to meetconsumer demands, the company has been on the forefront in producinga product with a nutritional value, that is, the Tropic Lite Juice,which is gaining popularity as a preferred drink. The focus onnutritional value has earned the company a reputation of a sociallyresponsible firm, in addition to contributing to improved brandvibrancy. Consequently, the good reputation and brand vibrancy havetranslated to growing sales and profitability (NAB, 2016). Thismarket trend is sustainable in the sense that it will enable thecompany to enjoy stable cash flows that would support long-termgrowth.
Weaknesses
Apartfrom having different areas of strength to enjoy, the company alsotends to have some areas of weaknesses that could impede itsperformance in the market. One of the notable areas of weaknesses isthe weak employee engagement policies. The adverse side of pooremployee engagement policies follows rests on the view that theorganizational success rests solely on the human resource. This viewcorresponds with the new humanistic paradigm, which recognizes thathuman resources are organization assets that should be treatedspecial because, in contrast to other resources, they havepsychological needs that, if unfulfilled, will cause them to be lessproductive. Examples of human resource engagement practices that NABtends to lag behind include poor employee compensation practices,limited training, development and work health and safety. The secondarea of weaknesses is relative resource limitation. The company isyet to be established in different markets and has limited resourcescompared to other major competitors such as Coca-Cola and Softa(BeverageMarketing Corporation, 2016).In this regard, the ability to realize long-term goals depends on howit will be able to address these areas of weaknesses.
Opportunities
Thebeverage market presents numerous opportunities that should be partof the reason for the NAB to remain committed to pursuing success.One of these opportunities is the promising demand for the beverageswith the nutritional value. In essence, the society is becoming moreconscious about what goes to the human diet. Consumers are concernedabout the health concerns of consumption of high fat, sugar andcalorie foods such as diabetes, obesity and hypertension, and need totake foods that would keep such diseases at bay. This scenarioessentially implies that the company will have many consumerstargeting its products. Secondly, the technological developments arealso promising. The emerging technologies will be beneficial in termsof increasing efficiency, the costs of production and quality ofproducts (Hawkins & Holden, 2013). NAB is expected to benefit alot from this development. Moreover, internationalization andstrategic alliances also lend themselves as the opportunities toenable the company to increase its customer base.
Threats
Whilethe company has various opportunities in the market to exploit, italso faces different forms of threats that stand on its path tosuccess. Strong competition is the most outstanding factor that doesnot only threaten the profitability, but also survival and long-termgrowth. The major competitors include Coca-Cola, Schweps and Softa(Hawkins & McCambridge, 2014). The existence of alternativeproducts is also another form of threat. A combination of otheralcoholic and non-alcoholic products, including those that are notnecessarily nutritional threaten the product sales and profitabilitybecause the company can always opt for these alternative products attheir convenience. Moreover, the effect of economic downturns andmarket uncertainties should not be overlooked. The 2008-2009 globalfinancial crises were accompanied by far-reaching consequences suchas reduced discretional expenditure, reduced sales, and profitabilityfor many businesses across the world. There are no indications thatsuch an occurrence belongs to history (BeverageMarketing Corporation, 2016).The success of NAB and performance of Tropic Lite Juice lies in therisk management strategies that will be undertaken to check on theadverse sides of these factors.
Conclusion
Inconclusion, the aim of this paper has been to conduct a SWOT analysison NAB Beverage Company, focusing on Tropic Lite Juice. The companyhistory presents the company as a vibrant and successful one. Despitethe historical successes, the company is committed to long-termgrowth and profitability. The SWOT analysis for NAB’s Tropic LiteJuice presents various strengths and opportunities that the companymay enjoy, yet it also presents threats and areas of weaknesses thatwill need to be checked to deliver desirable results. Therefore, theability for the company to achieve its goals depends on thestrategies it will take to make the weaknesses its strengths, turnthreats to opportunities, and translate the opportunities to success.
References
BeverageMarketing Corporation (2016). U.S.New Age Beverages through 2020. Retrievedfromhttp://www.beveragemarketing.com/shop/new-age-beverages-in-the-us.aspx
Hawkins& McCambridge (2014), Industry Actors, Think Tanks, and AlcoholPolicy in the United Kingdom. AmericanJournalof Public Health 104,pp. 1,363–9.
Hawkins,B. & Holden, C. (2013), Framing the alcohol policy debate:industry actors and regulation of the UK beverage alcohol market,CriticalPolicy Studies 7:1,pp. 53–71.
NAB(2016). AboutUs.Retrieved from http://www.nabdrinks.com/team
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