MANAGEMENT 4 - SWOT Analysis of Tropicana's Market Position

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tropicana. The analysis highlights Tropicana's strong brand image, long-term experience, and global presence as key strengths. Weaknesses include high prices and challenges in rural distribution. Opportunities include the growing health consciousness of consumers and potential partnerships with hotels and restaurants. Threats identified are the preference for fresh juices and intense competition within the beverage industry. The report synthesizes these factors to assess Tropicana's market position and strategic challenges, providing a comprehensive overview of its internal and external environments, and offering insights into the company's future prospects and strategic considerations.

SWOT Analysis

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SWOT Analysis
It is a strategic management planning technique that helps to identify strength,
weaknesses, opportunity and threat of the organization. Strength and weaknesses are the internal
factors and opportunity and threat are the external factors as these helps to examine the internal
and external environment of the organization (Gürel & Tat, 2017). The SWOT Analysis tool is
implemented on Tropicana:
Strength: Strength defines major factors of the organization that helps to attain the competitive
advantage in the market. Strength factors of Tropicana are given below:
 Tropicana has high brand image in the market that helps to operate the business smoothly
and effectively in the market. Apart from the brand image, the company also has its
different position in the market (Tropicana, 2019).
 The company has the long term experience in the market such as it is a 60 years old band
that successful operates the business (Mind Tools, 2019). Experience makes the company
profile more appropriate that helps to attain the success in business.
 Tropicana operates the business at the global level in order to grasp the high market share
in the market. It operates the business in 60 countries and still it is continuously growing
or focusing on geographical expansion (Tropicana, 2019).
 The distribution process of the company is also strong as it delivers its services across the
world with the help of its different suppliers and distribution channels. The product of
Tropicana requires attention during the distribution process as it directly affected from
the environment (Phadermrod, Crowder, & Wills, 2019).

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Weaknesses: Weaknesses defines the major factors those affects the business and needs to
improve for operating business
 It has been seen that the prices of Tropicana is high as compare to the other company’s
product. The high price rate strategy affects the market share and limit of customers. It
reduces the demand of consumers towards the product of the brand.
 It is observed that Tropicana reduces the quantity with the constant price rate. Instead of
decreasing prices, the company reduces the quantity from the product from 8-10% that
develops the costly brand image of the company. It is also a weakness factor as it affects
the demand of consumers to buy the product of the company on continuously basis.
Tropicana provides the packaged juice to consumers but it is difficult for it to provide the
juice to rural areas. The packaged juices of the company are more relies on high margin
than mass sales which means company invest has to invest in its distribution channels
instead of earning from selling the product. That is the reason; the company mainly
operates the business in urban area (Tropicana, 2019).
Opportunities: It defines the factors that help to expand or grasp the new business in the market:
 Nowadays, the people are getting health conscious for their health and try to consume
healthy food. Tropicana also provides the aerated juices which is quite healthy for human
body. It is the great opportunity for the company to expand their business from aerated
drinks to healthier drinks (Imarc, 2020).
 Tropicana has numerous variants under its arsenal but the variants are also most common
as the competitors also use them. It is suggested that the company has to look out towards

MANAGEMENT 3
the fruit flavors those are not easily available in the market so that it can compete with
their competitors to gain the competitive advantage.
 Tropicana also has the opportunity to tie up with the hotel or restaurants to increases the
consumer awareness towards products that helps to increases the amount of revenue.
Threat: Threat defines the factors that directly affect the business in negative terms:
 It has been found that the fresh juices are still more preferred than packaged juice. The
consumers have high trust on fresh juice which raises the threat for the company to losing
the consumers. There is high competition with fresh juice in the beverage industry as the
fresh juice reduces the demand of consumers towards the packaged product (Imarc,
2020).
 Competition is the other threat for the company as there are numerous brands that offer
the different flavors of drinks such as Saints, Del Monte Juices, Minute Maid and Real
Juice (Craft, 2019).
Summary
From the above analysis, it can be said that Tropicana has high brand value in the market as it
operates the business from 60 years. There are some weaknesses as well due to which the
company fails to rank at the first position just because of nature of product. It has the opportunity
to expand its business in new streams such as tie up with hotels and restaurants, and the others.
But somewhere it has to be careful which operating the businesses as the competition among the
companies are high.

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References
Craft. (2019). Tropicana Products competitors. Retrieved From: https://craft.co/tropicana-
products/competitors
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Imarc. (2020). Fruit Juice Market: Global Industry Trends, Share, Size, Growth, Opportunity
and Forecast 2019-2024. Retrieved From: https://www.imarcgroup.com/fruit-juice-
manufacturing-plant
Mind Tools. (2019). SWOT Analysis. Retrieved From:
https://www.mindtools.com/pages/article/newTMC_05.htm
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, 194-203.
Tropicana. (2019). About Us. Retrieved From: https://contact.pepsico.com/tropicana/about-us