SWOT Analysis Assignment Example | Topics and Well Written Essays - 1250 words

SWOT Analysis - Assignment Example Locked into lower voltages due to interchangeable battery systems Opportunities: Can diversify into other product lines Can leverage position in Japanese and US markets to expand into various other markets across the world New technology manufacturing plants ensures low costs at manufacturing end thus allowing cost of end product to be low but without compromising on quality Can introduce higher voltages and consolidate position as innovator in the market Threats: Position in US market may be reversed due to dependence on currency exchange rates which may turn unfavourable Risks losing the opportunity to be proactive about higher voltages, by waiting for the rest of the players in the market Becomes reactive and may lose the current edge in the market if competitors come out with higher voltages first Imports from Far East may diversify into professional tools at a much lower cost for the same quality S&W - Minimising weaknesses and threats: The first step is to phase out the older technology at manufacturing plants and replace it with newer, more efficient technology. This will lead to reduction in costs - both manufacturing and labour. A solution to the high pricing issues will result from this move. The newer technology will be leaner, thus streamlining the company and making it quick to react to changes in he market. Innovation and diversification into other technologies will be required to maintain market leader status. Change in attitude towards distributors is needed to convince them that the company is not abusing its market leader position. S&W - Maximising strengths and opportunities: The multi national presence of the company can be leveraged to expand into new products in various markets. Cooperative advertising and cross... The multi national presence of the company can be leveraged to expand into new products in various markets. Cooperative advertising and cross promotion implies less spent on advertising. These savings can be sunk in R&D for innovation and developing new products. A step-by-step replacement of the old interchangeable battery systems is required so that Makatume is in a position to bring in newer higher voltages. A change in strategy is needed so as to avoid depending on the currency rate for a favourable market position. The company needs to be proactive and take a decision about higher voltage so as to avoid losing the edge they have in the market. Makatume must innovate and diversify into other products as soon as possible to avoid losing the share they have captured in the professional tools segment. An expansion in markets in other countries is also advisable to consolidate the market leader position. By introducing higher voltages, Makatume stands to become an innovative market leader. Assuming Makatume's point of view, having captured large shares in the Japanese and US markets, I would be proactive and launch the higher voltages. But I would do this in a phased manner so as not to lose the customers that Makatume already has. By doing so, Makatume would be perceived as an innovator which would add to the value of the brand.