draft of swot analysis

SWOT Analysis

Strength

1. Blended EVOO (no vintage EVOO with different taste)
2. Mass market oriented
3. Australian market
Brand = RedIsland => blended EVOO
• Brand market penetration
• Brand awareness
• Brand recognition
• Brand scaleable (sunflower, canola oil see Costco)

Brand = Njoi => regional EVOO (currently not promoted?!)

Weakness

1. Company highly indebted (800 TAUD interest yearly)
2. Management reacts slowly to market changes e.g. 10/11 selling prices high <-> market share down <-> operating loss
3. Global market penetration
4. Orchard management
• MIS structure (bad debts: growers don’t pay their bills)
• Orchard yield (EVOO purchases)

Opportunities

1. Regional expansion (China, Taiwan, Japan, South Korea)
2. Currency fluctuation => AUD weakens
3. EC olive oil subsidies reduced or cancelled (EC debt crisis)
4. Successful AOA promotion of quality EVOO
• Aussie supermarkets go for local quality EVOO and reduce EC imports
• Aussie government introduces quality check for all olive oils sold in Australia


Threats

1. Worldwide overproduction
2. EC olive oil subsidies no change
3. Currency fluctuation => AUD strong
4. Further increase of EC olive oil imports -> cutthroat competition



Bullet point

To produce olive oil only money and patience is needed => worldwide overproduction
To sell olive oil with a reasonable operating profit a lot of brain and know how is needed => few companies