Introduction
Deep Roots Distillery having been established in Canada at Prince Edward Island the village about 15 kilometers at the outskirts of Charlottetown, the company majorly deals with the distillation and production of liquor among other related products in the same line of production. The management through Tows analysis can derive SWOT analysis to assess the company’s internal strength, weaknesses, opportunities, and the general threats both internal and external.
The acronym TOWS is a derivative of SWOT analysis which stands for strengths, weaknesses, opportunities, and threats. The American international business professor developed the matrix by the name Heinz Weirich which is a strategy meant to create tactical options from an internal-external analysis and is a useful tool predominantly in the fields of professional business organization and marketing (Sarsby, 2016). The two primary goals that Deep Root Distillery as a company can work on is first the company can raise its revenue to about $100,000 in income earned annually. Another possible objective that is achievable if the management of the company can utilize the available resources is the expansion of Deep Root distillery operations to other countries. The achievement is because Deep root distillery Products are highly distinguished enough from its competitors.h
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Deep Root Distillery annual revenue can increase since the management has adopted criteria such as SMART. The company is specific about the product they offer. For instance, the company specializes in the production and distillation of liquor. The management has established a legit progressive track of performance over the years since the first year of establishment ensuring that the company attains its set objectives. It is without a doubt that the Deep Root Distillers has managed to reach its goal of being the favorite brand providers as much as a tourist souvenir market is concerned. In regards to the high demand for liquor and related alcoholic drinks, the company has managed to maintain its customers as the products are in high need in the current state of economic affair as it delivered in the right and required time (Green, 2014).
The fact that Deep Root Distillery is in charge of supplying the raw materials for the production process, the strategy makes the operation and the running of day to day business efficient. Provision of organic material for production is an activity which was predominantly started by the company major stakeholders hence ruling out the possibility of future competition ( Grant, 2016 ). Furthermore, the industry within which the company lies as own supplies gives Deep Root leverage strength hence outdoing other competing firms which produce the same products. To increase income, the company must ensure that SWOT strategy that it adopts can attract more customers ( Grant, 2016 ). For instance, one of the company’s strategies is that it has developed a model that is tapped into the tourist client base which is a potential high-profit operation.
It is realistic for Deep Root Distillery set a goal of over $75,000 revenue in a year since the company managed to build a stock of $40,000 on the material year that it started the production. In regards to the second goal of expanding to capture more markets, the journey started way back in 2005 when the management acquired a full certification by the Atlantic Organic as a legal formality to begin the production of more carbon-based fruits (Janzen, 2017 ) . The close association with Canadian food inspection agency and the compilation with PEI have enabled Deep Root Distillery to run a perfect distillation process for liquor production. This managerial initiative had a good market reception as the customers enjoyed the products.
SWOT analysis as a derivative of TOWs matrix is an ideal method to scrutinize the operation of Deep roots distillery (Sarsby, 2016).
Strengths of Deep Root Distillery
Deep root distillery has an excellent customer relation since the company over time has managed to create a loyal client based market.
The company is certified and has managed to be legally established since it has completed all the legal requirements.
The company has a reliable and captive means of acquiring organic fruits for production.
The company has managed to produce quality products over the years.
Deep Root Distillery Weaknesses
The company does not have a wide range of products.
The company does not have a strategy for marketing and advertising
The plan used to choose
The company's oprincipal market is dependent on the tourist.
Deep Root Distillery Opportunities
Deep root distillery has its captive source of organic fruits as compared to its competitors.
There is no stiff competition as the spirit distillation companies are
Deep root has a connection with PEI which has a significant influence on determining the external markets as far as the quality of the products in the same industry is concerned.
Threats to Deep Root Distillery
The risks may comprise both internal and external threats. Some of the external threats that may affect the company negatively may include state regulations, ban on some of the products, unreasonable government standardization on liquor quality, less raw material as well as environmental factors which entail calamities such as earthquakes among other.
Internal threats emanate from within the company. These threats may include poor management, fraud, and resistance to change, unreasonable terms and conditions affecting stakeholders among others. Concerning deep root distillery, some of the significant Threats is the frequent production of alternative substitutes in the tourist souvenir fair as well as the requirement that the company has to be always ready to curb stiff competition by the few distillers in the same industry.
References
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition . John Wiley & Sons.
Green, G. (2014). The Smart Business Exit: Getting Reward for Your Blood, Sweat, and Tears. Cork: BookBaby.
Janzen, E. (2017 ). Mezcal: The History, Craft & Cocktails of The World’s Unlimited Artisanal Spirit.
Sarsby, A. (2016). SWOT Analysis, A Guide to SWOT for Business Studies Students.
