Running a business is not easy because it must be profitable and take many risks into account. Only with the proper analysis and the right strategy is it possible to develop the project and improve both the product and its production. This affects the result and, consequently, allows to bring in more profit (United States Government Accountability Office, 2021). There are many different ways to analyze a project, the most popular of which is the SWOT method. This method is ideal for exploring a new product and also gives a total amount of information about how relevant it is and what to expect from its introduction to the market.
Strengths
First, it is necessary to investigate the strengths of the ice cream project. First, it is needed to analyze the demand for the product in the proposed region for sale. This will make it possible to understand how important the product can be, what type of competition there is, and what conditions for production need to be established. The city of London, Ontario, is in a hot climate, which contributes to the demand for selling ice cream. It is important to note that the region is chosen well because it allows for production under suitable climatic conditions (Box & Platts, 2020). The fact is that the ice cream production equipment is designed to work in a hot climate, which is ideal for business development requirements.
It is important to note such a strong point as the ideological approach to selling the product (Vaněk et al., 2017). The condition states that the ice cream will be made in the American style, which suits the market for selling the product. Since the city is close to the Canada-U.S. border, this affects both the acuteness of the product sales and the production setup (Kotler & Keller, 2016). Since the distance is not significantly large, the logistics costs will be modest and will not exceed the limit.
Weaknesses
However, there are a number of weaknesses that must be taken into the consideration. Despite the novelty of the idea of selling American-style ice cream, there is competition. In theory, the hot climate can mean the relevance of sales and that other manufacturers may already occupy this niche. Moreover, it is worth noting the price that will be set for the product. Since the product preparation method will be different than usual, its price will also be higher (Vaněk et al., 2017). Such a decision may force the potential buyer to save money and buy a good quality product in a different style. In such a case, the overall sales trend will be lost, which will affect the business. Lowering the price of the product to improve competitiveness will also have a negative effect because, in this case, production will not generate the proper income.
Moreover, the sales of food products imply the maintenance of quality because the customer, over time, can understand how the recipe has changed. A significant disadvantage can also be the fact that despite the small distance between countries, sales will still take place in another country (Box & Platts, 2020). This means that the regulation and control of production can take much effort and time. This requires a fully competent staff who perform their duties to the best of their abilities to improve the product’s quality. In addition, this person must have the general knowledge of doing business and high socialization skills and be a brand ambassador in another country (Bergeron et al., 2017). There are not many people like this, so a much time must be spent to ensure that the quality of the product stays on the same level and continues to bring in revenue.
Opportunities
In addition to its strengths and weaknesses, which are often manifested in the earlier stages of business development, it is also necessary to pay attention to the future establishment of the project. For this purpose, the SWOT system also considers the opportunities to improve production and the threats that may hinder this. A proper SWOT analysis should not only focus on the short term but in the longer term.
Speaking about the development prospects of this project, it is necessary to take into account the fact that such businesses cannot afford to stagnate and stand in one place. In the case of a sufficiently good return on production, it is necessary to expand the range of products, improve production and implement new business models. It is also essential to strengthen its influence in other regions (Carr & Beaumont, 2018). One establishment may not be enough to reach a new level of development.
It is necessary to expand your establishments in terms of staff. Despite the higher costs, this will allow one to control the production process more carefully and show the prospects for the development of the franchise (Bergeron et al., 2017). In this regard, it will attract the attention of potential investors and more professional staff. It is also essential to understand that these solutions are boosting the companies’ grow significantly. However, it may seem more expensive, but it should be understood that this solution is designed for the prospect of the entire business and, as a result, will be able to count on more favorable working conditions and sales, as well as an increased amount of funding.
Threats
No less critical point are also the risks that may be associated with the future development of this type of business. The most important issues are the weather conditions that may cause severe damage and geographical location of the first place of sale. Despite the aforementioned benefits, such a location can be detrimental due to hurricanes and tornadoes, which are often near London, Ontario. Every precaution should be taken to ensure that in the event of a state of emergency and an impending disaster, the location will be able to survive and continue to generate income. Mechanisms must be developed to deal with the possible consequences and how to keep the business from going bankrupt. It is also essential to consider the risk of increased regional competition due to increased demand.
During the project’s development, new establishments may appear that offer similar products at an undervalued price. For this purpose, it is necessary to keep an eye on new businesses and adjust to the realities of the sales market. Thus, this method will change the price of the product and attract the attention of new customers. In addition, it is also essential to take into account the fact that the project is located in another country, which also affects quite significantly on the development and does not allow to expand appropriately. The product in this style may not appeal to residents of more distant regions, therefore it is essential to include in the menu new items that will suit customers in places other than London.
References
Bergeron, C., Asselin, P., & Perelman, M. J. (2017). Establishing business operations in Canada. Goodman Lapointe.
Box, S., & Platts, K. (2020). Business process management: Establishing and maintaining project alignment. Business Process Management Journal, 11(4), 370–387. Web.
Carr, C., & Beaumont, J. R. (2018). SWOT: Law of evidence. (6th ed). Balckstone Press.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th Ed.). Pearson.
United States Government Accountability Office (2021). SWOT Analysis : A tool for making better business decisions. U.S. Dept. Of Agriculture, Risk Management Agency.
Vaněk, M., Mikoláš, M., & Žváková, K. (2017). Evaluation methods of swot analysis. GeoScience Engineering, 58(2), 23–31. Web.