Group Research 5.22.10

1. The actual tasks you completed- I did a SWOT analysis.
2. The progress you made toward your desired outcome(s). This went fairly good. This is a hard industry to research, because there is not a particular company that is leading the market. Or even at that, it is not a huge market, so there is very little information on the industry.
3. The lessons you learned. I had to be creative in my research. I looked up companies that make fruit drinks, I looked up information about postage, and information about trends in apple production. I really had to think out of the box, this was a good challenge. Here is the information I found.

S.W.O.T. of the Apple Press Industry


Strengths Weaknesses
• Metal press
• Self reliant (only products from outside company are grinder and basket)
• A natural products/health conscience
• Double mill style • Fairly expensive piece of equipment.
• Narrow focus
Opportunities Threats
• Positive trends in online retailing
• Flattening of the world offers more opportunities throughout the world.
• Easy to enter the market
• Rising cost of postage within the shipping market
• Economy

Strengths:

• Metal press- most presses on the market are wood. Metal will not wilt, or break down over time. If a consumer is looking for a sturdy product this would be of great interest to them.

• All natural- because this produce would appeal to those who want to make their own apple juice it will appeal to people who are trying to be more earth friendly. This has the potential to be a part of the green/organic movement.

• Double Mill- in 1900’s this was most popular. This is traditional.


Weaknesses:

• Fairly expensive equipment- this equipment is fairly expensive, so those who are buying it would either really like to make their own apple juice, or they are going to make money by selling the apple juice.

• Narrow focus- if you don’t like apple juice this product would not be appealing.


Opportunities:

• Positive trends in online retailing- “US online retail reached $175 billion in 2007 and is projected to grow to $335 billion by 2012.” (Mulpuru,1)
• “This flattening of the world, where geography is being transformed by the Internet, is relevant to the wine business [apple business] in at least two ways. Number one is that with easier access to product, thanks to the Internet, I think we're going to actually see more and more demand for cult wines. I know that's counter to a lot of the current thinking, but as the globe gets smaller, somebody in New Delhi or Tokyo who wants a particular wine from Stags' Leap or Northstar will have access to it.” (Basler, 1) This means that there is a flattening in which consumers from all around the world who are looking into an apple press will be able to access the website, and see the product. People can price shop and see that they are getting according to the price.

• Apple consumption is one of the largest of the all fruits. “As of 2005 apples were the third most consumer fruit in the United States, first being bananas, second being melons.” (Granatstein, 1)


Threats:
• Easy to enter the market- there are currently very few barriers of entrance. There is the cost of manufacturing, and selling. Other than those two, anybody could enter the market.

• Rising cost of postage within the shipping market- the following chart displays the cost of shipping and the rising costs over the last 40 years. It is predicted to continue to increase.

Each Additional Ounce
September 14, 1975 10¢ 9¢ 7¢
December 31, 1975 13¢ 11¢ 9¢
May 29, 1978 15¢ 13¢ 10¢ "A" stamps
March 22, 1981 18¢ 17¢ 12¢ "B" stamps
November 1, 1981 20¢ 17¢ 13¢ "C" stamps
October 1, 1983 ZIP+4 is implemented
February 17, 1985 22¢ 17¢ 14¢ "D" stamps
April 3, 1988 25¢ 20¢ 15¢ "E" stamps
February 3, 1991 29¢ 23¢ 19¢ "F" stamps
January 1, 1995 32¢ 23¢ 20¢ "G" stamps
January 10, 1999 33¢ 22¢ 20¢ "H" stamps
January 7, 2001 34¢ 21¢ 20¢ Nondenominated stamps
July 1, 2001 34¢ 23¢ 21¢
June 30, 2002 37¢ 23¢ 23¢ Flag and Antique Toy stamps
January 8, 2006 39¢ 24¢ 24¢
May 14, 2007 41¢ 17¢ 26¢
May 12, 2008 42¢ 17¢ 27¢
May 11, 2009 44¢ 17¢ 28¢
(Dart, 1)

• Economy – the economy has an effect on every industry from large corporations to the smallest business. US consumption has decreased, and therefore, “extra” goods are the last things consumers buy.