SWOT Matrix
Strengths
1. Broad product line
National food has broad product line that includes different types of Recipe and spices powders,
Ketchup, Custard powder, Pastes, Pickle, Salt and many more. National food occupies more than
55% of the market share in the business of Recipe and Spices and 48% market share in the
business of Pickle, Jam and Ketchup market.
2. Synergy among the Departments
NFL has diversified product line the same warehouses, distribution channel can be used as they
come up with new, better and improved products.
3. Broad Market Coverage
NFL has strong and very broad market coverage especially in urban areas. According to Sales
Manager National food, citizens of each city have easy access to sales and display centers.
4. Manufacturing Competence
National food has engineering and technical staff of the highest caliber that is capable of
Manufacturing such products that differentiates National food products from its
Competitors. National food posses specific manufacturing competences for example use of
imported machinery and a high quality ingredients in manufacturing of powder mix that maintain
the quality of product.
5. Good Marketing Skills
National food’s efficient marketing team in Pakistan has over the years played a crucial
role in developing public awareness. National food has its own in-house advertising
agency for promoting all National food’s products.
6. Online Assistance to its Customer
National food’s efficient online system to assist its customers, NFL has develop discussion
forum, recipe’s, ask the chef, health and nutrition and many more features on its website which
help customer at greater extent.
7. Enhanced Research and Development
National food emphasizes on Research and Development department to a great deal.
Chief executive of National food has hired a team of R&D himself and he makes sure
that on going improvements in the existing National food products range is a continuous
activity. Efficient R&D department is considered as a vital strength of company.
8. Well Established Brand Reputation
National food is among those few brand names that have earned a lot on the basis of its
brand reputation. However the fact is that company has seen tiring 40 years of hard work to
achieve this brand image. Brand name is a source of vital strength for the company and is known
all over the market place.
9. Appropriate Organizational Structure
Organizational hierarchy at National food is very functional and appropriate. Company
top management consists of the Chief executive and Managing director. Then there are
middle managers of concerned departments like Marketing, Production, R&D and
Finance. Company believes strongly on good relationship with its human resource.
10. Good Brand Management
National food have good brand management. They are dealing in multiple product lines but their
brand mangement is much efficient that they are successfully conducting their business.
Weakness
1. Sale in Rural Areas
NFL has low sales in rural areas because this market segment in not properly addressed. NFL
gives special promotions to the customers of departmental stores like Makro, Metro and
Hyperstar but there are not such stores in rural areas, promotions to retailers are not been given
on frequent basis. So that other brands have high sales in rural areas as compared to NFL.
2. Bargaining Power of Supplier
Bargaining Power of Supplier is high because they don’t have system of backward integration.
Sudden increase in the cost of raw material because of unstable economic conditions also affects
the prices of finished good. And frequent changes in prices also affect the brand association.
3. Earning Per Share
Earning per share is decreased by 4.72 to 4.21 but EPS of its competitor increased over last year.
Opportunities
1. Expanding into foreign markets
The biggest opportunity for National food currently is exploiting new market segments.
After achieving good market coverage all over Pakistan, National food is now trying to
Expand its business in Middle East and Central Asian states. They have start their exports to
India.
2. Expansion of core business
National food started as recipe and spices producers but soon gain rapid market shares in powder
mix. Today Company has wide range of products that it has achieved by expanding the core
business. But Company can expand it more by producing Chinese recipe along with it existing
powder mix products.
3. Entering Related Business
Entering those new businesses that are related to current business is a high potential. Backward
integration can be useful tool of the company. For example company has entered the related
businesses like Kheer mix, honey, noodles, spaghettis, Pastes and many other things.
4. Capture the rural market
NFL has resources to capture rural market. They can do so by established well sound strategy.
Devan is one of its strong competitor in rural areas because of its strong promotional campaign.
HFL should compete with Devan.
Threats
1. New Entrants:
The biggest threat for the Company has been the entry of new competitors in the market has
made National food management think that they will have to adjust the pricing or to provide
some handsome incentives to customers in competition with other brands in market because
Company does not want to lose its market share.
2. In-Stable Business Environment
Current economic situation in our country is threatening the business environment. Sudden
increase in raw material prices, high rate of inflation is affecting a lot. NFL can compete with
this challenge by developing well sound strategy.
3. New Product Development of Existing Competitors
Knor and Kitchen Secret are coming into the market of Recipe and Spices. They have strong
brand recognition in its parent product. These are really threatening the sale of NFL.
4. Government Legislation:
The production department of National food uses special machinery that has to be
imported from abroad. Government has imposed heavy taxes and duties on imports which limits
the introduction of new products and innovation.
SWOT Matrix Strategies
Strengths Weaknesses
S-O strategies W-O strategies
Opportunities
S3O2 W2O3
S7O3 W2O1
S4O4
S2O4
S-T strategies W-T strategies
Threats
S2T1 W2T1
S3T3 W1T3
S5T1 W2T3
S6T1
S7T2
S4T4
S-O Strategies:
1. The major strength of national foods is the capacity of producing a wide range of
products. National Food is not catering the category of Chinese recipe It is the
opportunity for National Foods to enter in that product line.
2. National Foods customer perceives a quality product as the brand image is very attractive
in the sense that the introduction of new products in the market is always appreciated by
the customers. National Food is continuously entering the related business like
introduction of kheer mix and other products.
3. National Food through advertising can capture the market in the rural areas. Deven a
major competitor in rural area.
4. NFL should focus on using the existing synergy in the distribution channel to address
customers at rural area.
W-O Strategies:
1. National Food can do backward integration to reduce the bargaining power of the
supplier. This is an effective strategy of take control over the prices of the products.
2. NFL should capture foreign market to increase its EPS with high rate of return
S-T Strategies:
1. NFL can use synergy among the departments to minimize its production cost, so that its
impossible for new entrant to produce the same quality product at the same level of cost,
using this strategy HFL can restrict the entry of new entrants.
2. NFL can use its distribution channel as its strength; if they deliver their products more
efficiently they can have increased sale revenue it will help them to survive in this market
slump.
3. NFL should utilize properly its in-house marketing skills. In the modern era the good
marketing leads product towards success. NFL should give much attention in this regards.
4. Company should broader the scope of its online assistance to its customers. Its one of
good strength of the company because no other competitors is yet into this marketing
scope.
5. R&D department of National Foods can develop new and improved methods of
production so the cost of production can be inevitably low and the threats of increase in
raw material prices and inflation can be overcome.
6. National Foods has the manufacturing competence to produce new and innovative
products. The external threat is from the government that may restrict the import of
special machinery.
W-E Strategies:
1. Bargaining power of supplier is not much in the favor of NFL. New entrants can harm it
as well by giving more incentives to its suppliers. So, NFL should have deep look in this
aspect.
2. As NFL wants to develop and capture more market segment they should focus on
addressing properly in the rural market.
3. New product development can be affected by the increasing bargaining power of
suppliers. Backward integration should be considered.
