Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Strategic planning
Strategic planning
How to overcome weaknesses and threats in SWOT analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Strategic planning
After enjoying years of success as a master distributor, RCI was now facing challenges adapting to the needs of the changing 1990’s environment. The problems RCI faced, as a distribution company was three-fold: Firstly, Component Manufacturing wanted to alter their distribution arrangements so RCI would no longer be an exclusive distributor for Component Manufacturing. RCI aided the company to become what it is today. Removing RCI’s exclusivity meant that RCI would be losing on margins of the selected products. Secondly, Masato Corporations demanded that RCI purchase 23 000 units of leakage detectors or risk losing their exclusivity. This marked a huge decision for the company as leak detectors posed the single highest gross margin product for RCI. Lastly, the company needed a long-term strategy for the company to survive the intense competition in the industry. SWOT Analysis Strengths Opportunities • Long standing relationship with Component Manufacturing • Exclusivity with certain replacement parts • Strong brand equity • Explore downstream option • Explore upstream option • Merge with other master distributors Weaknesses Threats • Threat of Component Manufacturing removing exclusivity • Threat of Masato Corporations removing …show more content…
As wholesalers have essentially taken the role of the distributor at a lower cost to manufacturers, shares of the market are shifting. Due to this channel evolution, exclusivity is disappearing. Therefore, due to this changing nature, RCI should give up exclusivity and allow Masato to distribute the products to competing distributors with hope to gain the units at cost. In this way, it will keep out other distributors and then buy their inventory at discount. It is not wise for RCI to simply purchase al 23 000 units as from Exhibit 2, RCI only sold 20 755 units. It is a huge financial and inventory risk for RCI to accept all 23 000
Andrews is a sensor manufacturer in the market. While the company has been unable to develop a straightforward competitive advantage over the course of the past three years, the competitive landscape of the market has become a significant source of concern for the company’s leadership. There are other companies out there who produce better products, or are able to compete strictly based on price cuts. It came to the CEO’s attention that there is an opportunity for Andrews to shift a large portion of its production to an offshore location. This decision will not only allow Andrews to reduce its labour and material costs, but will also allow for improved distribution practices.
MCI is at a critical point in their company history. After going public in 1972 they experienced several years of operating losses. Then in 1974 the FCC ordered MCI's largest competitor AT&T to supply interconnection to MCI and the rest of the long distance market. With a more even playing field the opportunities to increase market share and revenue were significant. In order to maximize this opportunity MCI required capital. Their poor financial performance required them to use less traditional instruments to obtain financing. The capital acquired supported their growth until they reached a level of profitability in 1978. Subsequently they continued to increase their net income and the quality of their balance sheet. With continued prospects for growth tempered with some regulatory uncertainty they need to determine their optimal financial structure for the future.
The industry has loyal customers with broad customer base that lowers the collective bargaining power of buyers to medium. The switching cost is very low and thus the customers can turn to a service provider who provide faster and innovative service but this is overcome by customized services and integrating into their customer supply chain.
...hreat the possess. Companies should also pay attention to the changes that occur in each particular industry. For example, the innovations in technology. Because when making long term investments, the company should make sure that they can financially adapt to the changing situations.
...ine and Gaudin was going to present. Reliant had done their homework on their demands, potential softness of the market and was preparing themselves adequately to be able to deal with any changes. Pacific was not as prepared at the negotiation table as Reliant, and was eventually backed into a corner on a single item in the renewed control, the option for Reliant to re-sale any VCM product they have left over. The was a major oversight on the final advice from Kelsey in securing a huge customer and giving them time in further analysis the demand and impact that the new manufacturers would cause.
Without the overhaul of its management, which had fixed objective also made their objectives unattainable. The corporation was in a state of out of control before the long-range strategic objectives were set in place. GM’s nominal long-range strategic objective “to use its vast financial resources to spend its competitors right into the ground” fell short on critical characteristics of practicability, flexibility, cost effectiveness, and accountability.
According to Carl N. Siemon, “providing customers the highest level of quality, service, innovation, and value is the highest priority at the Siemon Company” (Siemon, 2015). Siemon achieve this through teamwork, creativity, resourcefulness, and integrity which have been the core values that the Siemon Company has lived by since 1903. “Values are the underlying principles or standards that guide all human actions – personal and organizational” (Nolan, Goodstein, & Goodstein, 2008, p 43). Based on these values, "Siemon has cultivated a culture of continuous improvement and leadership" (Siemon, 2015). After 112 years, Siemon 's unique family culture is stronger than ever. The Siemon brothers surround themselves with talented
...ged change and drove stability. They also managed risk with their wave implementation plan and other measures. The company had performed their due diligence and had earned their rights to success.
that made the company one of the most recognized companies of the world. The dynamic
Other companies have had a higher level of differentiation due to the way in which they have been able to identify with a single product, and this has enhanced their reputation, such as Sony and Matsushita initiating VHS. This is an industry where reverse engineering is extensive and many competitors will be working on similar technologies.
In spite of Dell’s Direct Model strategy, the company had lost any price advantage it had over its competitors. Dell also had an issue with channel inventory availability driven by the fact that their competitors were attempting to replicate their strategy. This was a large threat to the organization because they so heavily relied on just-in-time delivery of parts. Dell’s competitors faced many challenges to the direct distribution method, however. According to Exhibit 8 in the case (“Ratings of PC Vendors by Corporate Mangers with PC-buying Responsibility”), channel based support was rated the lowest on all scales, showing that this was Dell’s riskiest area as well.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
Rajagopal. "International Journal of Retail & Distribution Management." Emerald. Emerald Group Publishing Limited, 2011. Web. 21 Feb. 2014
...llenging to the organization is undeniable thus the organizations really have to come out with competitive transformation strategies so that they are strong enough to compete with their business competitors (Tonono, 2008).
Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods