Market Analysis - Micro Level: SWOT Analysis

After having analyzed Ambro's market on the macro and meso level, it is now time to move on to the micro level and take a closer look at the company itself. Therefore, we have conducted a SWOT analysis, which we will present in the following:

One key strength of Ambro is the uniqueness of their product. Since it is completely new to the market, they are not facing any direct competition. Specific product characteristics, such as organic ingredients and simple usage, make it easily patentable. This could help to prevent other companies from entering the market. Other strengths are related to their management team, innovation capabilities and connections based on the start-up Sauna.

Weaknesses of Ambro mainly stem from the fact that it is a start-up. They are lacking financial resources and operating processes still need to be improved. Moreover, some severe challenges with regard to the product itself need to be overcome.

Ambro's strength regarding the newness of the product result in some important opportunities for the company. First mover advantages might be realized and long-term customer relationships can be established. Furthermore, trends towards consumers' increased awareness about healthy food will benefit the company's growth.

Particularly threatening for Ambro could be reactions of companies offering substitutes. They might possess far more financial resources and be capable of developing a product outperforming the one of Ambro. Besides, new entrants could appear and threaten the company's position. Two practically related issues concerning the organic label and the name of the product might represent severe threats when entering the American market.


This SWOT analysis has shed light on several weaknesses and threats Ambro will have to deal with in the future. We feel that the following challenges in particular need to be overcome in the mid-term:

1. Taste: the drink is no real enjoyment, it is not particularly good tasting. The taste can be enhanced by mixing the powder with avocado/banana/juice etc., but then the drink itself is not as convenient anymore.
2. Packaging: at the moment, Ambro can only be bought in a large package that is not convenient to carry around. However, they are considering to change the packages to portion-size. 
3. Price: compared to other substitutes, such as Soylent, Ambro is rather expensive. During the pre-sales phase, a package of Ambro costs 79€ with international shipping (two packages with shipping for 119€). 
4. High transportation costs / production: deliveries outside Finland are quite expensive. Therefore, Ambro needs to find partners for production in the US. This would decrease transportation costs and increase customers' satisfaction by offering smaller package sizes. Moreover, local producers are more easily accepted by the country's authorities.

We are getting closer to the publication date of our final marketing plan. So stay tuned!


Sources:

1. The 11 Hottest Startups in Northern Europe http://www.businessinsider.com.au/hottest-startups-in-northern-europe-2013-11#indooratlas-wants-to-become-the-gps-of-indoors-1
2. United States Department of Agriculture Website http://www.usda.gov/wps/portal/usda/usdahome?navid=ORGANIC_CERTIFICATIO
3. Press Release: Ambro RELAX Introduced into New Markets in Texas and New Mexico http://www.prweb.com/releases/2011/6/prweb8519101.htm