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Strategic planning
Strategic planning
How to overcome weaknesses and threats in SWOT analysis
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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
...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.
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
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.
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.
The protection enhances the ability of sustaining a business in a competitive marketplace for the long run. A firm should also undergo the DYB strategy to get rid of business units and other resources that do not add value to the company 's performance. It should adopt the GYB strategy, in which it would utilize the business opportunities lying at its disposal to its advantage. As a direct result of these two strategies, the company would gain a substantial competitive edge against rivals, as well as boost its profitability in the long run (Grimm, Lee & Smith, 2010). Knowing that today 's business environment is characterized by heightened competition that has led to extensive gaps between industry leaders and laggards, and that there are greater churns among the industry rivals, the GYB and DYB strategies are essential for any modern company. More importantly, the GYB strategy should be focused towards the increase of
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.
... this and their marketing strategy will be key if they are to remain viable, grow and compete in the market.
that made the company one of the most recognized companies of the world. The dynamic
...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.
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
In order for a firm to compete within its industry, it must plan and relate to the industry