SAE – Wimm Bill Dann SWOT Analysis
Wimm Bill Dann – SWOT Analysis
Missing information from Resources & Capabilities research!
? Occupy leading position in the market ?1?, ? Lack of recognition abroad ?9?
? Lack of networks and contacts in foreign ?3?, ?14?
markets ?11? ? Established Brand in Russia ?1?, ?3?
? Lack of internal innovation ? reliance on ? High quality products ?1?, ?13?
M&A for new products ?1?, ?9?, ?14? ? Diverse product basket ?13?
? Understanding of Russian Market ?1?
? Reliance on (primitive) dairy farmers ?9?
? Russian climate limits fruit supply to ? Survivors, prospered during the financial
certain seasons crisis due to being the local producer,
when imports struggled due to the
? Internally fragmented ?9? weakness of the Rouble ?9?
? Entrepreneurial management: rented a ? Weak financial reporting ?1?
production line in an existing factory to
? Finding & hiring qualified personnel in get started. ?9?
? Ambitious, experienced new people from growing market ?1?
outside the company hired for leading
? Diversification into higher value ? Unreliable, insufficient local supplies of
segments, e.g. premium-range yoghurt, milk ?1?
yogurt drinks, dairy deserts, soft drinks ? World-wide reduction in milk-supply ?6?
(e.g. sparking, flavoured water) ?3?, ?7? ? Regulation of milk supply in Russia ?1?
? Diversification into growing market for ? Margins for dairy under pressure due to
Baby & children’s food ?7? increase in raw milk prices ?3? ? Diversification into non-directly related
fields, e.g. ice-cream, chocolate, tea ?3? ? Price-sensitive consumers may start to
prefer low-cost/low margin juice & nectar ? Acquisition of other dairies to get ?1?
geographical coverage ?1?
? M&A in water to gain consolidated market ? Increasing local competition in all sectors
?9? (Lebedyansky) ?3?, ?16?
? Improve the supply chain (logistics, JIT ? Competition from foreign Multinationals,
e.g. Nestlé, Danone producing locally delivery, order intake, IT) ?11?
(increased demand for milk, lower costs ? Operational efficiency improvements (at
of locally produced products ? dairies) ?9?
decreased profitability for WBD) ?1? ? Changing market, increasing distribution
through supermarkets (strategic
? Increased price of fuel could impact customers) ?2?, ?15?
transportation costs & profitability ?1? ? Low wages ?12?
? Increased cost of petroleum-based
products may impact cost of packaging ? Abundant natural resources. E.g. gas
? Joint venture, e.g. with Danone or Pepsi
? Political uncertainty ?1?, ?3? 16.05.2010 1/2
SAE – Wimm Bill Dann SWOT Analysis
Co. to gain capital and distribution ?10? ? Changeable regulatory environment ?1?,
? Growing Russian Market for dairy, baby ? Corruption and crime ?1?
food, water, drinks, confectionery ?1?, ?3? ? Underdeveloped Russian banking system
? Growing upper/middle class, greater ?1?
supply of money available ?1?, ?3? ? Unstable currency & exchange rate ?1?
? Increasing health consciousness ?1?, ?3?
? Increased demand for premium products
?1? WBD Memorandum, February 2007
?2? Data from PESTEL
?3? EUI Industry Forecast, Food, beverages and tobacco, Russia, January 2007
?4? Danone Company Report, 2005
?5? Expert Opinion, Ian Kellett
?6? http://www.nzherald.co.nz/category/story.cfm?c_id=96&objectid=10439897 ?7? http://www.cee-foodindustry.com/news/ng.asp?id=60598, http://www.cee-foodindustry.com/news/ng.asp?id=69136, http://www.cee-
products, http://www.cee-foodindustry.com/news/ng.asp?id=60598 ?9? WBD Case Study, GSB University of Strathclyde, April 2007
?10? http://www.cee-foodindustry.com/news/ng.asp?id=71380 ?11? Original thoughts, assumptions based on data…
?12? http://www.iht.com/articles/2007/04/04/business/east.php ?13? WBD Company Presentation, 2006
?14? http://www.flexnews.com/console/PageViewer.aspx?page=8603&str= ?15? Supermarkets.doc research
?16? Competitive Situation_V2.doc research