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Constellation Brands (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Constellation Brands

Constellation Brands is a leading international producer and marketer of beverage across the wine, imported beer and spirits categories. The company primarily operates in the US, the UK, Australia and New Zealand. It is headquartered in Fairport, New York and employed about 9,200 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Market leader
  • Strong manufacturing capability
  • Strong product development skills

Weaknesses

  • Customer concentration

External

Opportunities

  • Inorganic growth initiative
  • Wine plan initiative
  • Growing US and global wine market

Threats

  • Industry consolidation
  • Scarcity of skilled labor
  • Stringent advertising regulations in many countries
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