SWOT Strengths Experienced management in entrepreneurship. Tea experts. Diversified blends from around the world.

und the world. Online marketing via online purchase of products and direct orders. Unique aroma. Is a nonperishable product and therefore can be stored for long amounts of time therefore contributing to decreased operational costs. They are considered to be tea specialists, since they are a brand with over 25 years of experience in the tea industry. Dilmah has been able to establish a well-recognized brand in over 90 countries worldwide. Dilmah provides value and quality to many people - Rich taste and flavor. Has a very innovative team of skill who come up with regular findings which widens the companys portfolio. Dilmah is very responsive to the market trends, because they offer their customers with different types of tea and further improving their experience. They offer their tea lovers with a wide range of products and flavors to serve new and existing markets. Figures in the annual reports of Dilmah prove that they are financial stable. Dilmah is currently ranked among the world's top 10 tea brands and is the third largest exporter of tea in Sri Lanka, a country where tea is mainly exported as a commodity.

Weaknesses Dilmah doesnt have their own companies in other countries so therefore rely on their international distributors. To account for the costs of importing Dilmah tea from Sri Lanka all the way to Canada, Dilmahtea is sold in Canada at a slightly higher price than its competitors. Dilmah does not provide coffee or hot chocolate therefore consumers in those markets are not attracted to Dilmah. AlthoughDilmah is a Sri Lanka brand, they have less market share in Sri Lanka compared to other local tea brands. Due to the climate changes in Sri Lanka, tea growing regions may be harmed therefore prices may increase thus affecting Dilmah.

Opportunities In 2012, retail current value sales of tea grew by 3% to reach C$517 million, up slightly from growth in 2011 therefore Growing tea consumption in Canada as a results Dilmah is able to penetrate the market to drive itself to greater revenue. Over the forecast period, retail sales of tea are projected to increase at a 2% constant value CAGR by 0.4% in volume, reaching C$564 million by 2017. Imports of tea significantly increased from $487.9 million in 1999 to $845.3 million in 2009 in Canada. Sri Lanka is one of the top suppliers of tea in Canada therefore Dilmah could convince importers of Canada and export their products. The global market shifting over to the healthier side of the food and beverage industry, which is a green light for Dilmah as they are able to further promote their green series of tea. Tea consumption will continue to grow in Canada as changing demographics and rising demand for premium tea experience drive new developments in the market. Nowadays people buy products over the internet as they have a busy life style and also since its much more convenient. Canada's tea consumption is expected to rise 40% by 2020 driven by increasing health awareness. Canadians drink more than 50% above global average of consumption of alcohol, therefore Dilmah could easily promote the new product which is vodka tea to the market and increase market share. Canada has shown a willingness to embrace flavored teas and experiment with alcohol-infused mixes, as result this would be an opportunity for Dilmah to promote the new product.

Threats With companies acknowledging the overall aging of the Canadian population, there has become a higher degree of actual and potential competition for shelf space at retail stores. Tetley Canada continued to lead tea sales with a 31% value share in 2012, thanks to its flagship brand, Tetley. Due to the popularity of coffee in Canada over tea, coffee considered to be the dominating drink in the hot drinks market. In 2010-2011, per capita alcohol consumption declined for the first time since the mid1990s to 8.0 litres of pure ethanol. This is equivalent to about 470 standard servings of

beer, wine or spirits for every person age 15 years and older in Canada per year, if this continues to reduce it will be a problem for Dilmahs new product. Associated Brands, a supplier of private-label and co-manufactured packaged foods and beverage products, has completed a merger with North American Tea & Coffee, a Canada-based manufacturer of specialty teas. This merger broadens and strengthens its private label business, giving access to the fast -growing market for specialty tea.

Pestle Political Sri Lankan government has imposed taxes on companies exporting tea as at 31st march 2011, as a result of this Dilmahs exporting cost would increase in turn the prices of these exported products in Canada would also increase. According to the 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA), trade has being dramatically increased due to this it will be a threat to Dilmah as Canada would import more from UK since its the largest trading partner of Canada. Municipalities in Canada issued building permits worth $7.2 billion in October 2013, up 7.4% from September 2013, therefore Dilmah could construct their buildings at a low cost and open up operations there as well.

Economical In 2010-2011, per capita alcohol consumption declined for the first time since the mid1990s to 8.0 litres of pure ethanol. This is equivalent to about 470 standard servings of beer, wine or spirits for every person age 15 years and older in Canada per year, if this continues to reduce it will be a problem for Dilmahs new product. The GDP of Canada in 2005 was $1,373,845(millions) and it has increased to $1,819,967(million) in 2012. Imports of tea significantly increased from $487.9 million in 1999 to $845.3 million in 2009 in Canada which would have an effect on the balance of payments in Canada, as a result this will benefit Dilmah since they export tea to Canada. Inflation rate of 2011 in Canada was 2.91% and in 2012 it was 1.52%, this clearly shows that the inflation rate has decreased by 1.39%, due to this prices of products in Canada are rising but at a slow rate. The exchange rate of Canada of has appreciated from 2011 to 2012 compared to the Sri Lankan Rupee.

Social The retail current value sales of tea grew by 3% to reach C$517 million from 2011 to 2012 which allows Dilmahto penetrate the market to drive itself to greater revenue. In 2012, Employment continued on a slight upward trend edging up 22,000 in November and the unemployment rate held steady at 6.9%, therefore more people are earning money as a results demand of consumers increase, due to this Dilmah could promote their products and attract more consumers. Canadians drink more than nine billion cups of tea a year therefore Dilmah could easily sell their tea.

Technological 2,69,60,000 of the total population in Canada are internet users which means its 79.2% of the total population, as of march 2011 and this percentage keeps on increasing throughout the years, therefore Dilmah could sell their products online as well and capture a larger market. Legal In order to be legally sold in Canada, all natural health products must have a product license, therefore in order for the Dilmah to sell tea such as green tea, they would have to have a product license. Canada is planning to change its current regulations which mean the responsibility is now shifting to the importers, who will be solely liable for the safety and traceability of all products being brought in therefore more risk towards Dilmah. In Canada, sales tax is exempted for certain beverages such as tea, therefore prices of Dilmah tea will not increase as a result they could compete with other tea sellers.

Environmental Canadas climate is dominated by extreme long and cold winters, as a result tea would have a growing demand since these beverages many keep people warm in cold environment therefore Dilmah could easily export their tea to Canada.

Porters five forces

Threat of new entrants

Threat of Substitutes Threat of substitutes for tea in Canada is high since there are many other beverages that can be consumed instead of tea such as coffee, carbonated soft drinks and other available beverages. These substitutes can be direct and indirect substitutes. Also other competitors that sell better quality tea in Canada will become threat of substitutes. --- Direct substitutes Coffee and malted products. ---Indirect substitutes Carbonated soft drinks and fruit juices. Bargaining power of customers As a result of the number of competitors in the tea industry in Canada is high, customers switching costs will be low. Also the tea products in the market are differentiated hence the bargaining power of customers is moderate.

Bargaining power of suppliers