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SIC 2082 Food and Kindred Products - Malt beverages

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Brewery Business Plan

Sedibeng Breweries

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SWOT Analysis

We are in a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond quickly to what the market dictates and to provide quality brew in a growing market. In addition, through aggressive marketing and quality management we intend to become a well-respected and known entity in our respective industry. Our key personnel have a wide and thorough knowledge of the local manufacturing market and expertise, which will go towards penetrating the market. However we acknowledge our weakness of a medium-sized company without a lot of experience, and the threat of new competition taking aim at our niche. Below are the summarized strengths, weaknesses, opportunities and threats.

4.1 Strengths

• Strategic market segmentation and implementation strategies.
• Diversified market segments: ensuring the lack of dependency on one particular market.
• Combination of skills in directorship. The directors intend to jointly develop business strategy and long-term plans, having wide experience in product and business know-how.
• Establishment and maintenance of strong capital base.
• An aggressive and focused marketing campaign with clear goals and strategies.

4.2 Weaknesses

• Lack of a reputation in comparison to our competitors.
• The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the company.
• A limited financial base compared to the major players in the industry.
• Lack of clear-cut channels of distribution.
• Establishment on the Internet will produce technological challenges.

4.3 Opportunities

• Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and integration therein).
• The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious).
• Current drive by government and specialized institutions such as the Botswana Export Development and Investment Authority towards export of locally manufactured products.
• Internet marketing and sales--though still in its infancy.
• Increasing number of foreign firms, especially from South Africa looking at penetrating the market.

4.4 Threats

The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including:

1. Established mass-market companies' development of new lines and vertically integrating so as to be totally in control of supplies and products being sold on the respective markets.
2. New marketing strategies and tactics by established products and companies.
3. Existing competition.
4. Other start-up companies generated by healthy economic growth nationwide.
5. Intolerable price increases by foreign suppliers may occur.