Suunyvale

1153 words 5 pages
Sunnyvale Foods, Inc. Case
1 Present Situation Analysis
Strength
* Long history
It has history of more than 127 years. Its products are popular under the Sunnyvale Foods brand.
* Enough facilities
Sunnyvale Foods is the one of the large US food processors operating more than 30 processing plants with total annual sale about $650 million. So Sunnyvale Foods is capable of economy of scale or scope, which can contribute to low cost or price.
* Broad product line
Sunnyvale Foods has a product line of 65 items. If this is made use of appropriately, it can contribute to economy of scope.
Weakness
* Sales orientation
The former president said, “as long as new products look like they will increase the company’s sales
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They can play one supplier against another, and they have power to insist that processors meet price point. Chain store require price allowance if special locations or displays are desired and accept producers’ cents-off coupons. Besides they carry non-advertised brands or their own brands at low price to attract consumers.
* Intense competition
According to the vice president of sales, the size for the market hasn’t grown for
many years and food processers advertise heavily.
* A lot of substitutes
Most consumers are pressed for time and aren’t very selective. If they cannot find the brand of food they are looking for, they will pick up a substitute instead of finding the same brand elsewhere.
Opportunities
The case does not tell us much information about opportunities. We conclude some opportunities from our knowledge which are increasing needs for healthy food and convenience, overseas markets especially emerging markets, and some potential blue ocean markets.

Exhibit SWOT Summary | External Opportunities1.increaing need for healthy food2.needs for convenience3.potential blue markets | External Threats1.Less bargain power toward upstream suppliers2.Downstream retailers have strong bargain power3. Intense competition4.A lot of substitutes |
Internal Strengths1.Long history2.Enough facilities3.Broad product line | SO | ST |
Internal Weakness1.Sales orientation2.No serious consideration before

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