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SWOT Analysis Ice cream shop Essay

The company values their close customer relationships. Thanks to arsenal sales activities of the owner of Sic Avoided Amsterdam, clients have a strong connection with their ice cream supplier (this can be concluded from the Positioning Advantages and from one current customer mentioning this advantage during the qualitative research). This will eventually lead to brand loyalty. Another strength of the company are their flexible delivery times. The firm is able to deliver the products every day of the week for the convenience of the buyer.

This gives Sic Avoided Amsterdam the advantage and ability to differentiate itself from its competitors. The many is also able to adapt and customize the ice cream flavors to the wishes of the customer. Through this approach, the firm can always fulfill the needs and wants of the client.

WEAKNESSES

Weaknesses are internal limitations and negative situational factors that may affect the company’s performance and its objectives. A significant missed opportunity for the ice cream seller is their total absence on the corporate website.

The website, owned by Sic Avoided Second, does not provide any information of their franchise in Amsterdam. Due to lacking physical and low brand awareness, a strong brand image s not yet created. It must be stated that the company did attempt to apply simple marketing strategies in the past, but failed in succeed in them.

OPPORTUNITIES

Opportunities are positive trends or factors in the external environment that the company might be able to exploit to its advantages. Through this approach, weaknesses could be decreased.

One of Sic Avoided Amsterdam biggest opportunities is the positive development of demand for ice cream in the Netherlands. Besides, the type of ice cream that the company offers (soft scoops) enjoys a stable market position in comparison to other ice cream types such as rezone yoghurt and water ice (page 11). This advantage can be compared as the Cash Cow of the BCC Matrix. A different opportunity for the ice cream firm is the positive forecasts on private consumption of future clients. This occurrence is caused by the expected positive economic forecasts in 2015.

The environmental and climate changes will also form an advantage; due to increasing temperatures and a growing SWOT Analysis Ice cream shop

Effect on the profit of the business. Another positive development, is the increasing number of health conscious customers. According to the fact that Sic Avoided Amsterdam also provides the possibility to order fat-free/ sugar-free/ yoghurt ice cream (alternatives that are considered healthier than the classic full fat ice cream), the company is more likeable to fulfill the wishes of this growing amount of clients.

THREATS

Threats are undesired trends or factors in the external environment that could have influence on the performance of the company. By pointing out these negative factors, the company can intercept problems in time and take precautions. The ice cream industry in the Netherlands is highly competitive and demanding. It must be mentioned that a significant part of the competitors (such as Othello, Sense Goleta and Ben & Jerry) are offering an extended product range in comparison to Sic Avoided Amsterdam, including showcases and maintenance services.

They also run an active promotion program and offer (optional) advertisement material. Moreover, a significant competitor has created a new technique to improve the creaminess (quality) of their ice cream. This innovative technology will not be available for Sic Avoided Amsterdam, which might cause a negative effect in the long run. These points are seen as serious threats, due to the fact that the company may lose future customers on these aspects. Additionally, according to a report given by INNING (INNING economist bureau, 2012), declining purchasing power will lead to a decline in the catering branch.

This is a forecast that could form a threat for future plans for Sic Avoided Amsterdam.

SWOT Matrix

SWOT conclusion

According to the SWOT Analysis, Sic Avoided Amsterdam invests and values their close relationships with their customers, which strengthens the trust in their products. Although the company offers high quality and customized products to their clients, it misses the opportunity to inform them about the corporate activities on the internet and website. This could lead to negative effects in attracting new clients, who fail to recognize the brand. Also read SWOT analysis of Ice Cream market

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Serious threats for the ice cream supplier are the high enmity in the ice cream industry and appealing promotion and advertisement program of competitors. Nevertheless, future perspectives show a growing demand in the ice cream industry and positive economic forecasts on purchasing power of customers. This could lead to opportunities for Sic Avoided Amsterdam to increase their customer base and to improve relationships with current customers. This is necessary in order to remain successful and to keep up in the competitive environment.

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