Porter Five Forces and SWOT Analysis for Sunnyvale Foods, Inc.
Current situation of sunnyvale foods ,inc.
Sunnyvale Foods is a brand of canned and frozen fruits and vegetables as well as condiments.
While the firm
has been around for over a hundred years, their profits have started to decline. it can be
deduced that the
firm has a production-oriented marketing concept. Rather than producing to meet a need, the
firm is
producing in anticipation of a need. Sunnyvale Foods focuses on mass marketing, aiming at
“everyone”
rather than target marketing a specific group.
Sunnyvale Foods has a line-forcing policy, which requires that any store wanting to carry its
brand name
must be willing to carry most of the 65 items in the Harvest Farm Foods line. Smaller stores are
generally not
willing to accept the policy
Rivalry among the Existing Competitors
In the past 13 years, Sunnyvale Foods' closest competitors had an average profit return on
shareholders' investment of 5 to 9 percent, while sunny vale Foods average only 1.5 percent.
Sunnyvale Foods' closest competitors are growing vertically which means that
they are producing their own production material and utilizing their own raw material and they
have full control on its quality, input
Section conclusion:
Current situation: Average
Near future: Low
Threats of New Entrants
Profitable markets attract new entrants, Company competes with the local food product the local
food product
will have a lower price.
Section conclusion:
Current situation: Average
Near future: high
Threats of Substitute Products or Services
This force is especially threatening when buyers can easily find substitute products with
attractive prices or
better quality and when buyers can switch from one product to another with little cost.
competitors can grow
their own raw material and make all of their packing materials and make new product
Section conclusion:
Current situation: Average
Near future: high
Bargaining power of suppliers
Whole Foods Market faces the moderate impact of the bargaining power of suppliers. This
element of the
Five Forces analysis model identifies the degree at which suppliers impose their demands on
business and
the industry. In Whole Foods Market’s , the external factors that contribute to the moderate
force
Section conclusion:
Current situation: Average
Near future: Average
Bargaining power of Buyers
The consumers are time bounded and are not very selective. If they can’t find the brand of
food, they are
looking for, they will pick up another brand rather than go to food store This is a reason that by
only
offering their products at large stores
Section conclusion:
Current situation: low
Near future: low
In Conclusion:
This is an attractive market if Sunnyvale Foods, Inc., change sales and marketing
policy
SWOT Analysis
Introduction
Sunnyvale Foods is a brand of canned and frozen fruits and vegetables as well as condiments.
While the firm
has been around for over a hundred years, their profits have started to decline
Sunnyvale’s Food Company is facing severe decline in profits because of its strategies, policies
and planning.
first mistake is that it has full line forcing policy and it is growing horizontally which means that
they insist
dealers to carry all of its products. it is offering but only big stores can afford it to but not the
smaller ones.
Sunnyvale Foods has a line-forcing policy, which requires that any store wanting to carry its
brand name
must be willing to carry most of the 65 items in the Harvest Farm Foods line. Smaller stores are
generally not
willing to accept the policy.
Strength
Sunnyvale Company has a line-forcing policy, which requires that any store wanting to carry its
brand
name must be willing to carry most of the 65 items in the Sunnyvale Foods Line That means the
Sunnyvale
company line expanded horizontally, and It’s easy for the Sunnyvale company make profit
Weakness
The consumers are time bounded and are not very selective. If they can’t find the brand of
food, they are
looking for, they will pick up another brand rather than go to food store This is a reason that by
only
offering their products at large stores they are losing the market share which they could earn
from the
retail stores.
Opportunity
Sunnyvale Foods’ manager prefer the new-product development and promotion as the target
in the next
few years that way may became new opportunity to promote sale and make profit.
Threats
Company competes with the local food product the local food product will have a lower price
and
Sunnyvale Company must face with competitors can grow their own raw material and make all
of
their packing materials. Then they will get the advantage in the field of product and price.
Recommendation
Overall Sunnyvale Foods is a large food processor, and decreased price and increased quality
can help
Sunnyvale Foods to survive in the intense competition. Besides, if situation allows, Sunnyvale
can try to
integrate downstream by acquiring some small chain stores or building stores by itself. This
would create the
marketing opportunity to improve relation with smaller companies it ignored in the past. This
way strong
downstream bargain and can make money from being retailers which could be more profitable
than being
processor. Additionally, the broad product line could share resource in every store, which could
save costs.
Creating a marketing campaign that combines the various food combination and choices can
add perceived
value at the same time.