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SWOT Analysis of A2 Milk Company Case Solution

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A2 Milk Company SWOT analysis

The A2 Milk Company is one of the leading businesses and firms in the industry. With increasing competition, the company has still maintained its leadership position through responding to consumer needs and demands.  The company maintains its strong position, and strong brand name through continuous evaluation of the internal and external business environment. This analysis helps in shaping its future strategy and growth direction. The swot analysis explores the strengths, weaknesses, opportunities and threats for a business to assess internal and external business environment – which helps in strategic decision making. The swot analysis of A2 Milk Company is also presented below to understand its sustainable leadership position as well as continuous growth strategy.

Strengths

Different consumer segments

The company targets different consumer segments for its products. This ensures higher penetration, and a higher consumer base. As a result, the company has maintained different product lines with high quality to meet the demands and needs of these different segments.

Wide geographic presence

The company has a wide reach across different regions. Its products are easily available at retail and through other channels. With its high reach, the A2 Milk Company is also able to maintain high sales across different regions for all its consumer segments.

Different revenue sources

The company has made smart investments, and as a result, generates profits from different sources. It has revenue streams that are apart from its focused and core business of livestock and fishery. As a result, the company has a strong financial cushion.

Strong brand image

The company has delivered consistently on its promise of quality and freshness. As a result, the company has been able to build high consumer trust as well as a strong brand reputation. This brand reputation is also important for the high brand equity the business enjoys.

Trained workforce

The A2 Milk Company continually invests in its workforce and personnel. This is done through in-house training as well as external trainings and workshops. The company makes sure that the employees are updated with the latest skills and knowledge to stay ahead of competition.

Strong distribution and supplier network

The company has a strong backward and forward supply chain to ensure high and consistent quality in all its products. The company also maintains high availability and access to consumers for its goods through this easily.

Innovation

The company has a high focus on innovation to introduce new products that meet the consumers’ demands, the company maintains updated and upgraded product lines through focus on research and innovation.

Weaknesses

Trouble in integrating work culture of acquired firms

The size of the A2 Milk Company had grown because of its continuous mergers and acquisitions. These mergers and acquisitions had allowed the company to increase its size. However, the A2 Milk Company has not been able to blend cultures of acquisitioned and merged companies with the original work and organizational culture of the A2 Milk Company.

Restricted growth beyond core business

The company has broad product lines in its core business. However, the company has been unable to expand beyond this successfully in terms of exploring different as well as related product lines as new product developments and new product offerings.

Cost of expansion

The regional cost of expansion for the company has risen. Further international expansion will also be costly for the business because of limited resources for global expansion.

Limited online presence

Even though the company has high quality products, it has limited presence on the internet and on social media platforms. This is a weakness for the firm because modern consumers use the social media for information gathering, verification, as well as sales. The A2 Milk Company is losing out on important customer markets and segments.

Rigid organizational structure

The company has a rigid organizational structure which is not supportive of external changes and trends. This rigid organizational structure also make it difficult for the A2 Milk Company to adapt to the changing external environments, and the much needed changes in the internal business environment.

Mature market setup

The industry and the market in which the a2milk company operated has been in the growth stage, and has reached high saturation. As a result, the company also has stagnated present and future growth.

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