Proposal of a marketing strategy

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7.3 SWOT Analysis

In this chapter we will describe strengths, weaknesses, opportunities and threats as for the current status of the company. As indicated in the theoretical part, SWOT analysis shows the areas we can lean on or we have to beat up. The individual points in the analysis can be both supported by economic or other research or can just come out of comparative analysis of non-economical characteristics in the competitive environment. We will intend to summarize all critical points (critical to success or to avoiding failure) in order to implement solution of them in our marketing strategy proposal.
Thanks to Porter´s Analysis of Five Forces we will be able to gain the general view on what differentiates the company from competitors, where are internal capacities compared to potential entrants or competitors and how do suppliers strengthen or make weaker the company. Through summarizing information gained in PEST analysis the opportunities and threats will appear. All four fields (political, economic, social and technological) have provided us with sufficient data on compiling together a list of expected opportunities and threats.

7.3.1 Strengths and weaknesses

Both strengths and weaknesses describe internal features appearing in the company and limiting or in the contrary broadening company´s domain.
Strengths are:

  • history and fame of the company

  • experienced, qualified labour force

  • good position in the market

  • territory compassing all country (not yet abroad)

  • personal connections with architectonical and planning studios

  • exclusiveness of offered products, wide range of products

  • independent from foreign money

  • good and area specific knowledge of local environment

  • distribution channels in own hands

Strengths are mostly connected with history of Styl 2000. All points above do more or less have the history of company in common. It is the fame that is the cornerstone of good position in the market of pensile facades (but this is not true for the market of floor tiles and wall cladding) and it is the history why the company has longlasting personal connections with architectonical and planning studios and also specific knowledge of local environment as well as much experience in the field of pensile facades.

Weaknesses are:

  • fame for being expensive

  • no or only limited introduction of new materials

  • decreasing quality and amount of offered services

  • low flexibility and adaptation to market trends and customer

  • no conception of marketing, not existing marketing departement

  • small size of the company (not able to fulfill bigger orders)

  • old equipment of showrooms

  • very few customers with regular orders (only Kaufland)

  • low level of using IT

The company however seems to suffer from old age since its strengths gradually turn into weaknesses. High quality is falling and is felt as expensiveness which further frightens customers away and should therefore be pointed out when creating marketing strategy proposal. Decreasing quality of services is due to falling profit, however seems to be bad sign for customers as well – on the contrary today´s business environment (as mentioned above) requires higher perceived added value and this is mostly achieve through better and more extensive services. Further problem is that despite long history it does not have regular customers. Also concentration on traditional materials slows down flexibility and demand of new materials that are introduced only after a request and deny another current business requirement to forecast customers demand and needs and wishes. Through bringing a solution before customer asks for it could increase competitive advantage of this company. Also other weaknesses are threatening – introduction of information technology is more or less a must as well as concentration on marketing, be it as for planning reasons or managing overall process of selling.

7.3.2 Opportunities and Threats

These two cathegories answer question of impact of environment on company´s being. In the general PEST analysis we have pointed out some characteristics of today´s environment impacting Czech companies operating in the building industry. Here we will discuss shortly those features which can be associated directly with the analysed company .
Opportunities are:

  • markets abroad (mainly Slovak or Polish)

  • expansion of internet

  • using new methods of marketing – databases etc.

  • global agreements with suppliers and other building companies

We do not want to anticipate marketing strategy proposal, but even though there is opportunity to exploit markets abroad we do not think it will be used at least in the current situation. However internet is a big resource of opportunities for many industries and many companies, so it is also for Styl 2000. Marketing based in databases is also area where company could base its boom in. Sofar the company is alone standing, confiding only in itself, however the environment brings with it requirement of being interconnected to others, like suppliers or strategic partners since a small or alone company has to face imposed threats without any other help.

Threats are:

  • incoming and existing competitors

  • cheap substitutes

  • technical progress empowering suppliers

  • financial crisis

  • economical situation

Economical situation can both be opportunity and threat. If the company chooses a convenient strategy also negatively looking signs of incoming valley in building industry can be converted into competitive advantage working for those who are able to use it.

SWOT analysis points out factors both outside and insed which could change company´s situation in future. For our purpose it is necessary to take the most important ones and build company´s marketing strategy on them.

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