Tropical Delight Soft drinks is a small Canadian company that has a narrow line of drinks with only three flavours that was relatively unknown in the Canadian market but popular in markets of parts of Asia, South Asia and Tropical countries.
Strengths – The soft drinks were made with 30% real juice, which is more appealing to consumers who want natural flavours. The products were healthy and contain real fruit juices. Although the company had a small market share, their sales increased steadily over the years.
Weaknesses – They had a narrow line of products with only three flavours, which were relatively unknown in Canada. Although sales increased steadily, they incurred some major costs in to import the fruit concentrates from foreign countries, costs for bottle and its label, labour and admin costs and also to distribute the drinks to local convenience stores and supermarket chains.
Opportunities – They have an opportunity to expand its operations to greater cities in Canada that have a larger minority population to attract new consumers. They can also increase market share by expanding operations, thus increasing sales. They will have a competitive edge due to its distinctive name and packaging in the markets.
Threats – The costs associated with expanding can limit access to him entering these new markets. They may have issues with competitors who produce more tropical flavours known in Canada. There is also production capacity associated with expanding, where he would need to keep up production for current market as well as other markets that he is trying to get into.
Since these are tropical flavours, TDS need to first focus on the minority market which is a considerably large market in Canada. In doing that they should try to increase the number of flavours they make and import from Canadian farmers that produce these fruits. His three options...