Swot Analysis of Of Ichi

SWOT analysis of ICHI

Strengths:

• The leader Mr. Tan is famous in Thailand as a celebrity to the ICHI brand.
• ICHI is increasing its production capability to reduce OEM rate for more profit margin.
• Efficient inventory and modern management system enhance the productivity.
• Yen Yen herbal tea helps to penetrate the market with whole new concept.

Weaknesses:

• Brand awareness of ICHITAN is not optimized. Many people knows Mr. Tan, but they don’t know what the green tea is called. OSHI may be mixed with ICHITAN.
• Most products are not differentiated from the major competitors.
• Mr. Tan causes too much influence on this brand, The people who don’t know him may not interested in this brand or if he leave the company one day, there is few competitive advantage to keep ICHI in customer’s minds.

Opportunities:

• ASEAN community is providing opportunity for business to expand with lower cost and obstacle. The export revenue of ICHI now is only at 1% out of total revenue, there are still lots of opportunities for ICHI to expand to ASEAN countries.
• Green Tea as the healthy drink is attracting more and more attention. Young generations starts to be more opening to healthy drink as the result of health education.
• The global warming cause the new temperature record almost every year, the market of beverage is increasing with higher demand.
• The ready to drink tea market in Thailand has a CAGR almost 20% in the last five years. The growing market provide more space for company to grow.

Threats:

• Direct competition from OISHI and other imported green tea products.
• Downturn economy of Thailand. The GDP and purchasing power growth rate of Thailand are negative in last 2 years.
• New entrants trying to get a piece of cake from this growing industry.