Strengths

 

Weaknesses  

Strengths  

Occupy leading position in the market ?1A, ?3A, ?14A  y  Established Brand in Russia ?1A, ?3A  High quality products ?1A, ?13A  y  y 

y  y 

Diverse product basket ?13A  Understanding of Russian Market ?1A 

Survivors, prospered during the financial crisis due to being the local producer, when imports struggled due to the weakness of  the Rouble ?9A  y  Entrepreneurial management: rented a production line in an

y 

Lack of recognition abroad ?9A  Lack of networks and contacts in y  foreign markets ?11A  Lack of internal innovation  reliance y  on M&A for new products ?1A, ?9A, ?14A 

y 

Reliance on (primitive) dairy farmers ?9A  y  Russian climate limits fruit supply to certain seasons  y 

Internally fragmented ?9A  y  Weak financial reporting ?1A  y 

? A 

existing factory to get started. y   Ambitious, experienced new 9 people from outside the company hired for leading positions ?13A 

Opportunities  

Diversification into higher value segments, e.g. premium-range yoghurt, yogurt drinks, dairy deserts, soft drinks (e.g. sparking, flavoured water) ?3A, ?7A  y  Diversification into growing market for Baby & children¶s food ?7A  y  Diversification into non-directly related fields, e.g. ice-cream, chocolate, tea ?3A 

y 

 Acquisition of other dairies to get geographical coverage ?1A  y  M&A in water to gain

y 

Finding & hiring qualified personnel in growing market ?1A 

Threats 

Unreliable, insufficient local supplies of  milk ?1A  y  World-wide reduction in milk-supply y 

? A 

6 Regulation of milk supply in Russia ?1A  y  Margins for dairy under pressure due to increase in raw milk prices ?3A 

y 

y 

Price-sensitive consumers may start to prefer low-cost/low margin juice & nectar ?1A 

y 

Increasing local competition in all

y 

 

consolidated market ?9A 

y 

Improve the supply chain (logistics, JIT delivery, order  intake, IT) ?11A 

sectors (Lebedyansky) ?3A, ?16A 

y 

y

 

Operational efficiency improvements (at dairies) ?9A  y  Changing market, increasing distribution through supermarkets (strategic customers) ?2A, ?15A  Low wages ?12A  y 

y 

y 

 Abundant natural resources. E.g. gas 

Joint venture, e.g. with Danone or  Pepsi Co. to gain capital and distribution ?10A 

for milk, lower costsof locally produced products decreased profitability for WBD) ?1A 

Increased price of fuel could impact transportation costs & profitability ?1A  y  Increased cost of petroleum-based products may impact cost of  packaging ?4A 

y 

y  y 

y  y 

Growing Russian Market for  dairy, baby food, water, drinks, confectionery ?1A, ?3A    y Growing upper/middle class, greater supply of money available ?1A, ?3A  y  Increasing health consciousness ?1A, ?3A   Increased demand for premium y  products ?3A 

y 

Competition from foreign Multinationals, e.g. Nestlé, Danone producing locally (increased demand

y 

Political uncertainty ?1A, ?3A  Changeable regulatory environment ?1A, ? 3A  Corruption and crime ?1A  Underdeveloped Russian banking system ?1A  Unstable currency & exchange rate ?1A