SWOT ANALYSIS BACKGROUND CASE SUMMARY: 1. Well known in oatmeal and also makes other break fast products.

2. Indeed the world leader in hot cereals. 3. In 1983, bought one most popular sports drink Gatorade 4. As it was virtually the only product in its rapidly growing market, competitors began to nibble away at Quakers market share. 5. The main competitors of Quaker, in the beverage market was like, Pepsi, Coco-Cola etc. 6. Other competitors, one Snapple, as they introduced with new technology, their sales raise from $13 million in 1987 to $516 million in 1993 7. Despite a hefty of $1 per bottle, Snapple products got market for new technology and health conscious. 8. Quakers considered selling part of Gatorade to a company like nestle or Unilever, reason they have big budget for advertising and also then it will be easy to get in the foreign market. 9. Fear of new partner of taking over the entire company. 10. Realized the problems of Snapple, that as their product was trendy-almost faddish so, initially it was popular. 11. Quaker bought Snapple for $1.7 billion in late 1994 a merger that created the third largest soft-drink company in USA. SWOT ANALYSIS STRENGTH: 1. Double Goodwill. As Quaker was already popular with Gatorade, now they bought another popular Snapple, so. 2. More efficient. Quakers manufacturing technologies can allow it to manufacture, package, and distribute Snapple more efficiently. WEAKNESS: 1. Budget (Cash infusion) Thats why Quaker considered once to selling part of Gatorade to increase its advertising budget and also to introduce it in foreign market. 2. Management The CEO observed that integrating Snapple and Gatorade would not be an easy management task. So obviously the management is weak.

Prepared by Md. Naimul Islam

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SWOT ANALYSIS OPPORTUNITY: 1. Foreign market. As Quaker considered to selling part of Gatorade, reason to get in the foreign market. 2. Long-term prospects look very promising. CEO has argued the above comment. 3. Fewer Competitors. As Quaker becomes the third largest soft drink company. 3. New Technology (Added). As Snapple got new technology, now it belongs to Quakers. This technology allowed the product to be bottled while hot, thus eliminating the need for preservatives and other artificial ingredients. THREAT: 1. Giant competitors. Competitors like Coca-Cola, Pepsi. 2. Initially popular (Snapple) Although it was initially popular in part because it was trendy almost faddish, Snapple sales were leveling off as more and more entrants made their way into the market. STRATEGY 1. First strategy will be a. To make use of strengths and opportunity b. Improve weakness c. Taking steps for defending threats. 2. Cash and Management a. Arranging cash (loan or investment) for marketing development purpose. And also to get a greater access to foreign markets. b. Development of a good and skill management for work most efficiently after integration, cause there is an opportunity that the long-term prospects look very promising.

Prepared by Md. Naimul Islam

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