• A well known brand name.
• A strategic business location.
• A strong market share.
• A new, innovative product or service.
• Marketing expertise.
• Superior R&D capabilities.
Companies also need to address the weaknesses that emerge as part of the SWOT analysis when developing or improving their strategy. Examples of company weaknesses include:
• Financial uncertainty.
• Poor marketing skills
• Unskilled or poorly-trained workforce.
• Weak spending on R&D.
• Poor reputation.
• Out of date technology.
• Obsolete product(s).
• High costs relative to profits.
• Poor quality of goods or services.
The external analysis takes a detailed look at the industry in which an organisation operates. This analysis takes at look at the opportunities …show more content…
If you are making bread and there is only one person who sells flour, you have no alternative but to buy from them. Suppliers could charge very high prices for unique resources.
A good example of a strategic supplier choice was the decision by Rolls Royce (the aero-engine manufacturer) adopted a dual sourcing strategy using alternative sources of supply to reduce the power of the suppliers. This limits the risk and exposure to Rolls Royce as it broadens its supplier base hence limiting supplier control [5].
Bargaining Power of Buyers (Customers)
Customers using their influence to play off one competitor against the other will increase competition within an industry by forcing prices down. This bargaining for improved quality or more services can result in a less profitably industry.
Threat of Substitute Products or Services
Within any given consumer-driven industry, the availability of alternative products or services is a continuous threat to …show more content…
Although the shape of the curve typifies a product’s life cycle, the times and demands will vary depending on product nature and the product level of maturity. The environment is constantly changing, so too are customer needs, so too must products that satisfy these needs. The PLC plots the different stages in the sales history of the product or service. As the product moves through each stage, it will demand various strategic responses from the company. Each stage presents differing opportunities and threats and must be targeted by a well thought-out marketing strategy [5].
Introduction Stage
The product or service is not yet developed, so sales are slow. Due to the heavy marketing campaign costs are high. There is more emphasis on promotion and distribution.
Growth Stage
The market awareness of the product or service is growing. The business must keep up with the rising demand. Increased competition from new players in the market must be faced. 3D printing technology is entering the growth stage of the PLC.
Maturity
• A strategic business location.
• A strong market share.
• A new, innovative product or service.
• Marketing expertise.
• Superior R&D capabilities.
Companies also need to address the weaknesses that emerge as part of the SWOT analysis when developing or improving their strategy. Examples of company weaknesses include:
• Financial uncertainty.
• Poor marketing skills
• Unskilled or poorly-trained workforce.
• Weak spending on R&D.
• Poor reputation.
• Out of date technology.
• Obsolete product(s).
• High costs relative to profits.
• Poor quality of goods or services.
The external analysis takes a detailed look at the industry in which an organisation operates. This analysis takes at look at the opportunities …show more content…
If you are making bread and there is only one person who sells flour, you have no alternative but to buy from them. Suppliers could charge very high prices for unique resources.
A good example of a strategic supplier choice was the decision by Rolls Royce (the aero-engine manufacturer) adopted a dual sourcing strategy using alternative sources of supply to reduce the power of the suppliers. This limits the risk and exposure to Rolls Royce as it broadens its supplier base hence limiting supplier control [5].
Bargaining Power of Buyers (Customers)
Customers using their influence to play off one competitor against the other will increase competition within an industry by forcing prices down. This bargaining for improved quality or more services can result in a less profitably industry.
Threat of Substitute Products or Services
Within any given consumer-driven industry, the availability of alternative products or services is a continuous threat to …show more content…
Although the shape of the curve typifies a product’s life cycle, the times and demands will vary depending on product nature and the product level of maturity. The environment is constantly changing, so too are customer needs, so too must products that satisfy these needs. The PLC plots the different stages in the sales history of the product or service. As the product moves through each stage, it will demand various strategic responses from the company. Each stage presents differing opportunities and threats and must be targeted by a well thought-out marketing strategy [5].
Introduction Stage
The product or service is not yet developed, so sales are slow. Due to the heavy marketing campaign costs are high. There is more emphasis on promotion and distribution.
Growth Stage
The market awareness of the product or service is growing. The business must keep up with the rising demand. Increased competition from new players in the market must be faced. 3D printing technology is entering the growth stage of the PLC.
Maturity