Azalea Seafood Gumbo ShoppeSWOT Analysis
...ality control, training and other procedures are not as rigorous as those of its competitors. This has already resulted in the loss of a major supermarket account due to incorrect expiration labels on a large shipment. The products are currently not enjoying good supermarket placement in many locations due to the absence of someone (either the company or a distributor) with the resources and will to manage the supermarket accounts appropriately. The company has recently taken on significantly more long-term debt liabilities (85,086 in 2000 versus 28,526 in 1999). The resulting financial leverage is problematic in that Azalea’s profit margins are not very high and are potentially at risk because of the competitive forces discussed previously. Azalea is very low on cash and may not be able to exploit opportunities or fund expansion. Azalea has the following market opportunities: Expansion into other geographic markets. Many areas of the country may be underserved in terms of Cajun-style prepared seafood. Achieving better product placement and more exposure to consumers in the supermarkets where Azalea currently has a presence. Expanding the existing relationship with Wal-Mart and Sam’s Club stores to a larger portion of their operations. The following are major threats to Azalea’s continued ability to be successful in the marketplace: Lower overall food prices driven by consolidation and subsequent price competition in the retail industries Azalea serves (restaurants and supermarkets). ...