SWOT Analysis of Johnnie Walker
SWOT is a key tactical planning tool that enables someone to analyze a company’s business strategies. It helps to investigate the current strengths, weaknesses, opportunities, and threats. This SWOT analysis of Johnnie Walker will focus on these factors to determine the company’s internal and external business scenarios.
Johnnie Walker is a Scottish whisky brand established by Grocer John Walker. There is no doubt that it is one of the leading names in the industry. The company is maintaining its business, reputation, and market share successfully. This success is because of the excellent coordination of different departments working within the company like strategic planning, management, marketing, finance, and information. The SWOT tool also helps the managers to create four types of unique strategies such as:
- Strength-Opportunities (SO) Strategies
- Weakness-Opportunities (WO) Strategies
- Strengths-Threats (ST) Strategies
- Weakness-Threats (WT) Strategies
Company Name: Johnnie Walker
Founders: Grocer John Walker
Founded: 1820 (Grocery Store), 1860 (Whisky blending)
Headquarters: Kilmarnock, East Ayrshire
Parent Company: Owned by Diageo
CEO: Ivan Menezes
Type: Scotch whisky
Sector: Blended Scotch Whisky
Tagline: Keep Walking
Products: Ballantine’s, Buchanan’s, Chivas Regal, Cutty Sark, Dewar’s, Vat 69
Target Consumers: Young men and women of drinking age
Sales: 14.1 million 9-liter cases (2020) – Figures released July 2021
Revenue: £2.1 billion (2020) – Figures released July 2021
Net sales: £11.8bn (2022) – Figures released July 2021
Here is the step by step SWOT analysis of Johnnie Walker,
Strengths of Johnnie Walker – SWOT Analysis of Johnnie Walker
Johnnie Walker is the most popular player in the Scotch whisky industry. There are so many particular plus points or strengths of Johnnie Walker that help the company to thrive in the industry. Due to these strengths, the company has earned immense popularity and market share. Thus, the company is trying to make a place in the new markets to grow its business.
Here are some prominent strengths of Johnnie Walker given:
- Free flow of cash is considered as the most powerful strength of Johnnie Walker. It gives a wonderful chance to the company to spend its money on new markets and projects because of the plenty of resources available.
- Through its worker learning and training program, Johnnie Walker has established a skilled workforce, which is the company’s main strength. On the other hand, the company is investing more money in these programs to motivate and train its workers so that they feel motivated to get more for the company.
- Without a successful distribution network, a big company can’t achieve the right amount of fame and success. The distribution network of Johnnie Walker is really reliable and strong, so its products are available in every potential market.
- Mergers and acquisitions are one of the biggest plus points of Johnnie Walker. So, to streamline its working and operations, Johnnie Walker has invested in tech companies and R&D. That is why its supply chain network is really dependable.
- The performance of Johnnie Walker in new markets is really commendable and they are trying to expand its business further. In this way, the company is earning more profits and revenues. As a result, they are minimizing the risk factor.
- In product innovation, Johnnie Walker is unbeatable; therefore, its product portfolio is really vast.
- The marketing strategy of Johnnie Walker is really amazing and it is a key strength of the company.
- The company has built a strong distributor and dealership community through its effective planning. That’s why the dealers not only promote its products but also train their workers how to sell its products. Due to this reason, Johnnie Walker is extracting maximum benefits from these dealers in the form of revenue and profit.
Weaknesses of Johnnie Walker – SWOT Analysis of Johnnie Walker
There is always room for improvement when you are an international company. There are some areas where the company can improve some things. Weaknesses are like hurdles in the way of success, and as a global brand, it is imperative to find out the real cause of weakness and address it ASAP. Here are some major weaknesses of Johnnie Walker given:
- Financial planning department is slightly weak of Johnnie Walker. When it comes to financial planning or strategy, Johnnie Walker is lagging in this department. The company is not doing efficient and proper financial planning. They should use the cash properly to gain more market share.
- The net contribution percentage and profit ratio are quite below Johnnie Walker’s average.
- In tackling present challenges and hurdles, the company is not taking proper initiatives. They do not have proper feedback mechanism, so they can’t resolve challenges. This weakness could hurt the profitability of Johnnie Walker in the future.
- The main success of Johnnie Walker is heavily dependent on its core products. Its product portfolio is highly diversified, but there are only a few products that generate the company’s major revenue.
- Johnnie Walker’s marketing and unique selling proposition are not so effective, so they failed to attract customers in the new markets.
- As compared to competitors, Johnnie Walker is spending a lot of money on workforce training and learning programs. This kind of higher attrition rate can disturb its budget.
- The technological department of Johnnie Walker is not so innovative. They need to invest in more and the latest technologies to streamline its operations. It is necessary to maintain the supply and demand ratio. The latest technologies also help the company to reduce its carbon footprint and manufacturing costs.
Opportunities for Johnnie Walker – SWOT Analysis of Johnnie Walker
- After the economic recession and slowdown, customers’ spending power has increased, which gives a fantastic opportunity to Johnnie Walker to target new consumers to expand its market share.
- The slight change in consumer behavior can be beneficial for the company. They should invest in new products to increase its revenue stream. It also gives diversification opportunities to the company.
- The inflation rate is getting lower day by day, giving the industry a strong stability. It will open the doors to success for the company.
- The online platform of Johnnie Walker was not so strong, but the company has realized this thing and now investing a significant amount in the online platform. They can earn more money by selling their products online. In this way, they can fulfill the demands of customers easily.
- Government environmental initiatives can also open plenty of opportunities for the company. This thing will help the company to earn the trust of eco-conscious customers as well as the government.
- By using latest technologies, Johnnie Walker can take competitive edge over its rivals.
- It is imperative to introduce new products to fulfill the requirements of consumers. It will increase the company’s market share, profitability, and revenue.
- Government rules and regulations can impact the business of Johnnie Walker significantly and in a positive way.
Threats for Johnnie Walker – SWOT Analysis of Johnnie Walker
- The presence of local players as well as international brands in the market can hurt the profitability of Johnnie Walker. They are one of the biggest threats for the company at local and international level.
- The seasonal demand of some core products can create trouble for the company in the form of low profit and sales.
- Changing buying patterns of customers can also hurt the profitability of Johnnie Walker.
- New environment-related rules like Paris Agreement could disturb the infrastructure of Johnnie Walker. They can also face packaging and supply chain issues due to this agreement.
- Other companies in the industry are continuously adopting the latest technologies to increase their profit. So, this thing can create some serious problems for Johnnie Walker.
- Economic recession in big markets is also a big threat for the companies like Johnnie Walker. These things can impact the business of Johnnie Walker negatively.
- The dearth of experienced and skilled workforce is also a big threat.
- Plenty of big players in the industry is putting Johnnie Walker to trouble due to their diversified product portfolio and increasing market share.
Overall, the company is doing fine in some markets, but it should address its weaknesses to increase its market share and profitability. The company is trying to establish its business in new markets, which will open the doors of excellent opportunities for the company. By reading this SWOT analysis of Johnnie Walker, you can easily predict the company’s future.
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