A SWOT analysis represents an internal and an external analysis of the company. Strengths (positives) and weaknesses (negatives) of the company are the internal analysis of your SWOT. Opportunities and threats are the external analysis within your SWOT Analysis. *Note: Information used to fill in the external analysis portion of your SWOT (opportunities and threats) should be pulled from your PESTEL and Porters Five Forces Analysis that you constructed in your Part I assignment. You, as consultants, need to assess what you have learned in terms of opportunities the company can take advantage of and threats they must protect themselves against. PLEASE PROVIDE REFERENCES.

Below is the PESTEL and Porter's Five Forces Analysis.

PESTEL Synopsis

The developing economy of Winnipeg, inhabitants' fondness for sweet desserts, the growing adoption of technology in the food business, and the focus on sustainability in the local market are all key elements in the PESTEL analysis pertinent to Made by Marcus Ice Cream. These aspects give the potential for market expansion and growth.

On the other hand, political stability and government backing are less relevant in this context because they apply to all enterprises operating in Canada. Legal compliance is vital but also a legal need for any food establishment.

Porters Five-Forces Plus One Analysis

Threat of New Entrants

• The relatively low barriers to entry, such as lower startup costs and access to suppliers and distributors, make it easier for new ice cream shops to enter the market in Winnipeg (Manitoba Restaurant & Foodservices Association, 2020). However, made by Marcus Ice Cream can leverage its established brand reputation, customer loyalty, and unique flavours to differentiate itself from potential new entrants (Made by Marcus, n.d.).

Buyer Power

• Buyers in the food service industry in Canada have moderate to high power due to their ability to choose from a wide range of ice cream brands. Canadian Restaurant and Foodservice Association. (2021). Factors influencing buyer power include price sensitivity, brand loyalty, and alternative ice cream options. Statistics Canada. (2022). Food services and drinking places, summary statistics for Canada, provinces, and territories.

Threat of Substitutes

• The threat of substitutes in the ice cream industry is relatively high, as consumers have various dessert options like frozen yogurt, gelato, and other frozen treats. Global Industry Analysts, Inc. (2021). Ice Cream Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031. Factors that contribute to the threat of substitutes include consumer preferences for healthier alternatives and the availability of diverse dessert choices. Mintel. (2022). Ice Cream - Canada - June 2022.

Supplier Power

• Suppliers in the food service industry in Canada hold moderate power, as they provide essential ingredients and materials for ice cream production. Mintel. (2022). Ice Cream - Canada - June 2022. Key factors affecting supplier power include the availability of alternative suppliers, the cost and quality of ingredients, and the brand's purchasing volume. PWC Canada. (2021). Supplier Risk Insights: Navigating the challenges of an evolving supply chain.

Industry Rivals

• The Canadian ice cream market is highly competitive, with numerous established players and a growing number of artisanal brands. Euromonitor International. (2021). Ice Cream and Frozen Desserts in Canada. Key competitors include national and regional ice cream chains and local shops offering unique flavours and experiences. The NPD Group. (2022). Canadas Top 50 Foodservice Chains.

Complementors

• Complementors in the ice cream industry include suppliers of toppings, cones, sauces, and other products that enhance the ice cream experience. Partnerships with complementary businesses, such as local bakeries or coffee shops, can create additional customer value and differentiate the brand.

Porters Synopsis (7 marks)

According to the PESTEL analysis, expanding Made by Marcus Ice Cream to Winnipeg, MB, is a good move. The expanding economy, consumer preference for sweet desserts, increased use of technology, and a focus on sustainability all present potential for market expansion. However, fierce rivalry from current ice cream stores and the threat of new competitors pose difficulties. The brand's strong reputation and consumer loyalty in Calgary can provide a competitive edge. Overall, the potential market opportunities, strategic positioning, and distinctiveness indicate that the Winnipeg market has the potential for success.