Swot analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture.

strengths
Adequate availability of seasonal fruits throughout the year. Our new and natural product which will attract many taste changers Our price is also a competitive advantage for us Our new production technology will enable us to mass produce products more efficiently and quickly than other old companies.

weaknesses

Brand acknowledgement Late entry into the market Non availability of trained staff at the beginning having market experience Our juices are not storable for very long time

oppurtunities
Participation with a growing industry Competitive advantage over carbonated soft drinks Our new delicious taste will attract much, such type of consumers who are taste changer Increasing health awareness will also turn out to be an opportunity Our new and improved plant will work more efficiently and effectively Limited options in locally produced real fruit juices

threats

Cut throat competition Unstable government policies Brand loyal customers may not switch to a new and small company People may not accept a new product

Pest analysis
A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: Political Economic Social Technological

Political or legal forces: If government imposes heavy taxes on the industry then it badly effects the industry growth. The taxes are imposed from government side and it varies from industry to industry. Currently juice industry has 16 % sales tax on it. Labor laws: Labor laws also effect the industry and government keep on revising the laws related to labor force e.g. laws related to child labor and forced labor. Government recently increased the minimum salaries of an employee to Rs. 7000. These laws directly affect the industry.

political

Environmental protection laws: Environmental protection laws also affect the industry. By law industries must treat their wasted water and must not pollute the environment through smoke. All the industries have to abide these laws. Political instability: The governments stability plays a great role for any industry. In Pakistan,government faces a lot of difficulties from terrorism, clash with Supreme Court and other political issues like corruption and Swiss bank accounts. These all activities effect industries badly and no one is ready to invest in the country. The electricity shortage problem, caused due to mismanagement and negligence of government has also created lot of problems to the operations of the industry.

Inflation Rate:

economic

Inflation rate in short run doesnt seem to be an important thing but in long run if the rate of inflation increases then the overall cost of production will also increase and hence the price of the product.

Interest Rates:
At present the fluctuation in the interest rate has no impact on our product as no financial aid has been taken from any bank but in future if any such financial help will be taken from any bank then the changes in this rate would be considered.

Disposable income:
If the disposable income within the country will be reduced

Inflation Rate:

economic

Inflation rate in short run doesnt seem to be an important thing but in long run if the rate of inflation increases then the overall cost of production will also increase and hence the price of the product.

Interest Rates:
At present the fluctuation in the interest rate has no impact on our product as no financial aid has been taken from any bank but in future if any such financial help will be taken from any bank then the changes in this rate would be considered.

Disposable income:
If the disposable income within the country will be reduced

social
Health consciousness: Today people are more health conscious. As the awareness in people is rising they are becoming more and more health conscious.
Environmental concerns Our product considers a lot about environmental concerns because they are very much socially responsible towards nature and humans. Lifestyle Changes: The lifestyle of people keeps on changing so it is very important to stay update with those changes, it is very important to take the advantage and to attain and retain the customers. Consumer adopts the trends of changing environment and

New products: Businesses are focusing on concentric and conglomerate diversification because in present era it is not possible for any organization to exist in the market for long run by providing just a single product. Organizations have to be diversified according to changing demands of the customers and trends Product Innovation: Product innovation is becoming more necessary for any organization because of the globalization; people are becoming aware about the changes being taking place around them and in order to respond them organizations have to focus on product innovation by introducing new flavors or changes in packaging etc. Productivity Improvement through New Technology: Automation and new technology does not matter a lot but it does contribute towards the productivity and improvement. It reduces labor cost and increase the production level. New juice manufacturing and packing machines are on their way to enter in the market, number of local suppliers and international suppliers available with the advance and cost cutting techniques.

technological

Porters five forces model

Threat of new entrance (barriers to entry): In juice industry threat of new entrance is low because high investment and advance technology is needed so barriers to new entrant are high. Every brand has different identity and has some goodwill so to capture a customer new entrant has to spend heavy amount to capture customer's loyalty. Bargaining power of buyer: juice market is a fragmented market so the bargaining power of buyers is high as they have a choice to switch from one brand to another.

Bargaining power of suppliers: The bargaining power is low because many suppliers are present in this industry and fresh fruits are easily available in the market.also PJC has its own fruit farms. Competitive Rivalry The big factors determining the strength of rivalry is how actively and aggressively are rivals employing the various weapons of competition in jockeying for a stronger market position and seeking bigger sales. In the market rival create a great threat. Many local company enter in market,there is also great threat for establish company. PJC will also face lot of HIGH competitor rivalry. Substitute availability There is no close substitute available of Cali 5.

Breakeven Point
Typically the time period of breakeven point is monthly; however it could be yearly or even hourly. In case of juices, people are more concerned about quality and brand image. As we are going to provide sugar free juices with affordable price and enhaced nutritions so, we hope to reach at break even point within 2 years.

conclusion