Stratsim Swot Analysis Essay

1. Threat of substitute products or services

External factors in the StratSim world are the main contributors to the moderate force or threat of substitution. In a mature market such as StratSim, it is important to note that there are multiple competitors to consider to identify treat of substitute our firm’s vehicles, and our firm must rein in the treat by making our products more accessible, affordable and convenient.

Our firm mostly caters to Value Seekers and Families, who are particularly interested in vehicles such as economy and/or truck. Based on this argument we can assert that the higher the cost of operating a vehicle, the more likely people will seek alternative transportation options. While it has already been assumed that the price of gas will stay constant for the first few years in the StratSim world, other attributes that may be of particularly interested to our buyers are safety

Firm E also has higher technological capability to reach out to market segment that our firm dominates. It has also been noted that the stock price of Firm E rose $7 to $50, increasing its value and giving the firm an incredible amount of capital to be invested for market capture. It has also been identified that our firm mostly compete against other players in market segments that are more price sensitive than those in others. This generally results in generating low returns when the cost of competition is high. For this particular market segment, however, price-based competition does not necessarily lead to increases in the size of the marketplace. Although, price-based competition is minimized with minimal gross margin for economy products, this competition could be intensified by providing our customers with rebates, preferred financing and long-term warranties. With such immediate capital available at hand, firms such as Firm E can attract our customer at its