Swot Analysis

Abstract

Our project will be opening of fully equipped gymanasium which will include quality services to value customers.This will be included in our executive review, SWOT analysis, marketing stretegies which will attract targeted customers, promotion plan, finacial plan, budgeting, calculating break even point. We will analyse and compare with market in order to get more and more customers.

Executive Summary

Our Mission’0.+

To provide quality and safety weight reduction program/fitness Centre both for the physical health and fitness of our citizen with different ages.

To provide quality services with multidisciplinary team approach including clinical nutritionist, physical medicine specialist, physiotherapist and physical trainers.

GOAL Fitness Centre will be opened daily from 6:00 AM to 11:00 PM

Location will be Hledan Region, Kamaryut, Yangon, Myanmar.

Quality Services

Clinical Nutritionist will make nutritional assessment to every individual trainee, nutritional assessment includes body weight measurement, body mass index (BMI), past medical history, current diet style (salty, oily, high calories food, etc.). After that, clinical nutritionist will set nutritional goals according to individual’s needs. Nutritionist will suggest meal plan, balanced diet which will be including proper intake of carbohydrates, fat, protein, minerals.

Physical Medicine Specialist will access individual trainee’s physical fitness, past medical history (heart diseases, hypertension, Diabetes, etc.), present illness (joints pain, muscles soreness, etc.) before doing any exercises.

Physiotherapist will access range of motion of joints, muscles power, gait pattern to everyone before doing any exercises and set the goals for each trainee according to the results of seeing clinical nutritionist and physical medicine specialist. Physiotherapist will set the exercise program as needed e. g active freehand exercises, strengthening exercises using weights, cardiopulmonary exercises, light exercises, etc.

Physical Trainers will help physiotherapists and do closed monitoring to the trainee one by one. Physical trainer will report physiotherapist immediately whenever they face any problems of trainees while doing gym.

We will provide weekly health education talk to the trainees and to the public at our Gym in order to get knowledge about doing gym and to get interest from the public more and more.

Goals and Strategies

Short Term Goals

Our short-term goals are to become well-known Fitness Centre among the public i.e. to penetrate the market first and to get the customers of different ages (over 12 years old to elderly)

Long term Goal

Our long-term goals

Our long-term goals are to expand and extend our business in different locations in Yangon, Mandalay and Taunggyi within 10 years.

Creating innovative ideas, creating new quality services to our customers are included not only in short-term but also in long-term goals.

Strategy

According to our partnership program and our compassion, we will use “Teamwork” and “Team Spirit” in order to get success and sustainability of out business.

SWOT Analysis

Strengths:

State- of- the art fitness Centre in Yangon, Myanmar which can be available one stop services for wellness program including clinical nutritionist, physical medicine specialist, physiotherapist and personal physical trainer. It will be the first and unique service in Myanmar because most of the fitness Centre and gymnasium have only personal trainer/instructors for physical exercises, only young and middle people can go the gymnasium because there is no medical safety for elderly (over 60 years) and the people have underlying some medical problems (e.g. Hypertension, Heart diseases, Diabetes Mellitus, etc.) . According to our state-of-the-art service, the customers from different ages (between 12 years to elderly) can come and join our fitness Centre safely.

Our location will be very accessible to come from different places, various transportation systems are available to reach Hledan area which is well-known and the most crowded place in Yangon. Shopping Centres, private hospitals, private schools, Yangon University, training and learning centres, Management Schools, gymnasiums are in Hledan area. That is the good place to start a business.

Nowadays, public are getting more awareness how to keep fit and live in healthy life style especially the people who live in downtown area where limited space for physical activities. These are our opportunities for opening fitness Centre at downtown area.

Weakness:

According to our complete service and location, our charges are a bit higher than other ordinary fitness centers in Yangon but the fees are within affordable prices for middle economy class population.

Opportunities:

According to our executive review and our mission, we will be doing business not only for making but also for our nation in order to keep fit, motivated and healthy people more and more, that will lead to increase productivities for our Nation.

Opportunities for elderly people who are interested to do safe and song regular exercises, they will get social activities and friends at Gym.

Treats:

Treats will be our competitors in the same field. We need to create innovative ideas in order to get more and more customers’ satisfaction, need to analyze the problems and find the best solution whenever we get customers’ dissatisfaction.

Market Segmentation and Positioning

Like any approach to market segmentation, the key goal is to cluster consumers together with their related needs in order to allow the organization to tailor an appropriate marketing mix. In this segmentation example for fitness centers, six different market segments have been constructed, as follows:

• Making friends
• Losing it
• Taking shape
• Peak performers
• Health requirements
• Sports focus
• Plan
• Goal Fitness Gym Fees
• Real fitness Gym Fees
• Daily

Goal Fitness Gym membership fees are 35% – 45% less than other gym.

Marketing Strategy

The fitness industry is highly competitive and it is challenging to maintain customer loyalty. Many customers drop off after a few sessions at the gym, and other clients simply switch from gym to gym depending on where they find the best deals each season. In order to gain new clients and keep your clients coming back, you need to offer them something unique. You need to keep them motivated and on track toward their personal goals so they will return for more sessions. You need to build a personal relationship and offer benefits that make your gym more attractive than the competition. Here are a few gym marketing campaigns to get more clients to your facility.

1. Offer corporate wellness initiatives –

• According to the Society for Human Resource Management, more than two-thirds of U.S. businesses offer wellness programs.
• Wellness programs are proven to not only increase employee health and well being, but to reduce business costs as well.
• Johnson & Johnson, for example, has stated that their wellness program has saved the organization $250 million over a six-year period, resulting in a wellness program ROI of $2.71 for each dollar invested!
• In 2013, the RAND Corporation conducted a survey of employers that asked questions about the efficacy of their wellness programs. More than 60% of those surveyed said their “program reduced healthcare costs,” and nearly 80% stated that it “decreased absenteeism and increased productivity.” When implemented properly, wellness programs provide a significant return for many businesses. This includes a wide range of benefits, from improved employee retention to reduced absenteeism to more effective cross-functional teams.

2. Run promotions on social media –

• Advertise on radio, Facebook, Magazines, on the bus posters

3. Hold charity competitions –

• Showing the involvement in local community makes our gym stand out from the others. Set up a simple online signup form that participants can use to register quickly and easily. The competition may be a group event or may include single participants. A percentage of each entry fee will go to the local charity of our choice.
• The competition may be an obstacle course, a race or a strength test. The winner(s) receive a free membership to your gym or a similar prize.
• Independence day mini-marathon
• Martyrs’ day rock climbing
• Gym Anniversary Run

4. Advertise new Hot Workouts plan –

• Keep an eye on fitness trends and offer new workouts while they’re still fresh. Market these new workouts to clients and new leads through automated social media updates and in email newsletters. Many new clients come in because they get interested in new workouts that they have heard about on social media or on TV. Advertising these new workouts that are available at your gym and providing social media updates for these new classes are more good ideas to get more clients coming in.
• Summer 8 Weeks Bikini-body Workout plan
• 5-day body workout plan for Toned & Sexy body
• 4 weeks transformation female
• 21-days total-body fitness

5. Run promotions with other local Business –

• Partner up with businesses around Hledan in order to make gym membership more appealing
• 10% discount or free delivery for Local diet meal plan for GOAL Fitness member
• Offer a coupon for a free pair of gym pants at the local sports clothes store if the person completes a one-hot workout gym program
• Since Goal Fitness gym provide special consultation service for health requirements, we can do joint promotions with local hospitals when patients need physiotherapy service

6. Send automated reminders to Clients

• Clients lose track of when their last gym visit was. For clients who have not worked out in a while, a timely automated reminder lets them know that they’re due for a gym visit. Text messages are more likely to be opened than emails. Personalized reminders keep clients loyal and engaged.

7. Run a refer a Friend program

Financial Plan

Goal Fitness Center is incorporated as partnership business. Shareholders are

• Ommar invest 34%
• Marlar invest 33%
• May Thu invest 33%

References

https://www.simplycast.com/blog/gym-marketing-ideas-will-help-gain-clients-today/#post

TANISHQ INTRODUCTION Tanishq has expanded its portfolio with the launch of sub-brand Mia, a line of jewellery targeted at working women. The line comprises two distinct designs directions – one in the modern and another in the ethno contemporary space. Mia is meant for women on the go, who are engaged in various professions and have a well-established accessory ensemble, unfortunately excluding jewellery. Fine jewellery that working women buy is mostly for traditional occasions, and do not have an offering for their daily wear in the market.

Tanishq is best suited to understand the needs of these consumers and has put together a wonderfully crafted, well designed jewellery collection, which will make them love to go to work. This collection is high on design quotient, light in weight, affordable and apt for today’s modern woman. Mia has over 100 designs priced at Rs 5,999 onwards and the collection is available across the 130 Tanishq outlets in over 76 towns. The objective is to take jewellery wearing occasions beyond weddings and special events.

Kulhalli ,vice president (retail, marketing and merchandise) believes targeting the five million working women is enough opportunity as increasing aspiration levels and the number of women entering the workforce will drive spending. The new sub-brand will also help open up a new consumer age group, in a jewellery market where bulk of the sales is in the 30-60 age group. DESIGN PHILOSOPHY Mia Tanishq is a stunning range of fine, urban-chic, affordable jewellery starting at Rs. 999 exclusively crafted for Working Women to ensure that you’re appreciated in your work place and makes you enjoy your work life like never before. Based on 2 design directions, Quest (no beginning and no end – Infinity) and Blossom (Born to Blossom – Born to Shine – Floral), this collection is truly a winner at work. Truly capturing the essence of the urban, independent working women, Mia is inspired by the individuality of each one of you and truly projects power, confidence and taste.

SWOT ANALYSIS Strengths 1. It has a young and modern approach and designs are urban chic. 2. Affordable price ranges are starting from 5999 3. Advertising strategy is strong and convinces the audience. 4. Market expansion is good, available at various outlets Weakness 1. Strong competitors 2. Gold Perception – Since gold is usually considered as an investment and the gold prices are volatile. 3. Gold buying is mainly considered a ritual for occasions like wedding and other important functions .

Opportunities’ 1. Target audience is the working class woman in India, around 5 million woman are working in India in Tier 1 and Tier 2 cities so it is a great opportunity. 2. With Globalization, lot of opportunities in the international market. 3. It is a sub brand of Tanishq the leading jwellery makers , and has good market share in Indian jwellery industry. Threats. 1. Tough competition with other jwellery brands. 2. Local jwellery shops 3. Government regulations 4. Significance on Gold.

Coca-Cola is the world’s dominant company in the field of manufacturing, distribution and marketing of non-alcoholic beverages. The company owns or licenses more than 500 brands, including carbonated beverages, waters, tea, juice, coffees and energy and sports drinks. In addition, the company primarily operates in France, Belgium, the United Kingdom, Norway and Sweden. Coca-Cola is headquartered in Atlanta, US and employs around 139,600 people. (Market line, 2011) Coca-Cola is widely regarded as one of the most successful business giants, which has achieved impressive brand identity.

Coca-Cola is continuing to remain competitive and their business is thriving. The CEO has set a long-term goal to double sales over the decade, a plan called Vision 2020. It is important to know what initiatives are being taken to complete Coca-Cola’s future prospects and what present situation it has confronted. One way to deliberate is through SWOT analysis. This project will first address definition and rationale for using SWOT. Second, it will discuss the advantages and disadvantages of Coca-Cola Company, then focus on the opportunities and threats, and finally evaluate the impact and future development.

Definition and rationale for using SWOT SWOT stands for strengths, weaknesses, opportunities and threats. Strength and weakness are internal to the organization while opportunities and threats are the external aspects of the marketplace. It is one of useful techniques used in business projects or marketing planning. (Ritson, 2008) With a comprehensive survey, it is more likely to compete successfully in the market. Strengths Coca-Cola has great strengths to conduct in world-wide scale. This section will focus on its brand reputation and advantageous position of management.

Strong brand identity and Innovative marketing approach Coca-Cola has achieved a great brand value across the globe. A key feature of Coca-Cola’s success may be attributed to its marketing strategies. For example, they communicate with consumers in order to evaluate consumer’s satisfaction and meet consumer preferences through social network, which is one of great advertising that enables a brand to stay young and fresh. The company aims to create effective consumer impressions. Coca-Cola seems to believe that brand image is related to brand loyalty. If consumers are satisfied, more consumers may feel connected to the brand.

Without doubt, Coca-Cola is the world’s most recognizable brand. It constantly raises consumer’s interests and offers them a clear view of its brand value. 3. 2 Global scale of operations and Strong financial reserves Coca-Cola owns a large portfolio of product brands. In the last decade, Coca-Cola has almost doubled its soft drink beverages market share to 23. 9%. One element of continuing success results from its main market of North America. Total revenues accounted from 39. 0% in the year 2000 to 46. 4% in 2010. (Marketline, 2011) This could mean that Coca-Cola will continually expand its market.

With large quantity of capital available for investment, Coca-Cola has great ability to build new plants or subsidiaries all over the world. Global operation allows Coca-Cola to make intensive distribution and maintain its wide economic dominant position. Weaknesses Despite the fact that Coca-Cola has successful strategies, it has few disadvantages that need to be addressed. This section will illustrate its high delivery cost and health issues. 4. 1 High delivery cost Coca-Cola has invented the unique syrup which was kept a close secret and only passed down through particular generations.

Although the company cooperates with its beverage canning, concentrates manufacturing plants around the world. These raw materials must be sent back to Coca-Cola’s original manufacturing country. (Harvard Business Review, 2011) For this reason, it may cause high shipping cost and increase financial burden. It would have been better if Coca-Cola Company had modified its delivery method. For instance, the company could scale down its transportation cost by reducing factories in remote areas. Health issues The ingredients found in Coca-Cola products may be harmful.

For example, one can of Coca-Cola contain about 10% sugar. (Brand Health Check, 2012) Large amounts of sugar in a person’s diet can weaken immune system because bacteria and yeast in the body feed on sugar. Another health issue is that the acid in Coca-Cola may contribute to the probability of tooth caries and loss of bone density. An excessive amount of carbonated drinks can lead to serious obesity problems. To some extent, the components in Coca-Cola are not actually harmful to people if they have occasional soft drink. Even so, the products are still labeled detrimental to individual’s health.

Coca-Cola should make effort to sway people’s negative views. For instance, the company actively responds to environmental issues by investing money in sustainable business. Opportunities For growth and profits, Coca-Cola has developed certain opportunities to improve present conditions in its business. Coca-Cola’s opportunities may include developing eco-friendly concept and investing in potential markets. 5. 1 Healthy options and sustainable business Owing to the growing awareness of health issues, Coca-Cola response to consumer’s interest in new healthy beverages.

For instance, the company has opened up a low calorie version and it has been named Coke Zero. Almost 25% of the product portfolio has been labeled as low or no calorie to differentiate their production line. (Marketline, 2011) Moreover, Coca-Cola introduced eco-friendly packaging and up to 30% of their bottles used less fossil fuels. It seems that they are trying to operate business without enlarging carbon footprint. To enhance business’s strategic foresight, many companies have concerned about environmental-concerned issues.

Coca-Cola moderately assesses both business and sustainability aims by eliminating waste and investing in recycle programs. Therefore, it could be a great role model for other enterprises. Investment in potential market There is a significant demand for nonalcoholic beverages worldwide. The revenue is rapidly growing by about $10 billion annually. Coca-Cola plans to invest more than $1 billion this year in Mexico because of its growing economy and expanding per capita income which attract international corporations. In addition, Coca-Cola is also targeting its less developed markets.

The company and its bottling partners will invest $5 billion in India by 2020 because India is one of its fastest growing emerging markets. (Marketline, 2011) Hence, Coca-Cola is probably prepared to rehabilitate its damaged reputation in India as the company has been blamed for polluting groundwater and soil. Furthermore, Coca-Cola seems to be confident about the future business in potential market. The company may offer more job opportunities and improve commercial relations between U. S. corporations and other countries. Threats Coca-Cola dominates its market.

In spite of this, there are still some external threats present. This section will discuss competitive rivals and barriers when entering new market. 6. 1 Competition Coca-Cola has intensive competition in various sparkling nonalcoholic beverages. Factors that impact the company’s business include pricing, advertising, product innovation and protection. PepsiCo is one of the company’s primary rivals, when one is up and the other is down. For example, Coca-Cola is still mostly seen as a carbonated beverage, whereas PepsiCo has diversity of snacks and other food products to keep the company’s revenue high.

(Sellers, 2011) Although Coca-Cola has the strength of recognition that force it dominates in the soft drink industry, the growing number of soft drinks companies may have potential to influence Coca-Cola’s market share and revenue growth rates. Market entry barrier Despite Coca-Cola ambitiously expand its production scale around the globe, the company still receives a challenge to reach this goal. For instance, the Chinese government rejected Coca-Cola’s acquisition of the Chinese company Huiyuan juice, even though the company announced a week earlier that it would commit $2 billion to the expansion of China in next three years.

(Harvard Business Review, 2011) This failure could be attributed to China’s Anti-monopoly law. However, there was no conflict between these two companies. ‘Coca-Cola just draws from a lesson that China was not ready to evolve the sale of a national brand to a foreign company. ’ (Kent, 2011) China would undoubtedly be the vast growth market for Coca-Cola. However, it seems probable that the government legislatively protect domestic firm from a foreign takeover. The government seems to regard that this merger could lead to a vicious competition in Chinese beverage industry.

Conclusion

It is no doubt that Coca-Cola Company is a powerful, globally recognized corporation. Coca-Cola is much more than just a recognized logo or brand name. It has achieved to develop a notion about universal refreshment. Moreover, Coca-Cola’s success mainly results from its proactive management, innovative marketing and global distribution. However, the unhealthy stereotyped image of Coca-Cola is hard to reverse. In addition, the entry barriers and competitors from other brands may hinder the development of Coca-Cola. Therefore, the company is raising its awareness to create sustainable communities for social responsibility.

In the next decade, the company and its partners are likely to invest in further development of manufacturing capacity, consumer marketing and brand building, expansion of distribution and innovation. Coca-Cola seems to make every effort to raise its brand image by marketing strategies. Owing to the company has a recognizable image to influence people all over the world. Coca-Cola should be a pioneer to raise other enterprise’s awareness for social sustainability and philanthropic funds. It may give rise to a new business foresight and more innovative possibilities.

Consumer electronic goods experience a significant growth in terms of variety of products and the use of advanced technology. In 19th century, electronics industry faced a relieving progress when Alexander Graham Bell invented an communication media, which later named as Telephone. Actually, the inventor of telephone is not only Bell but also Elisha Gray. However, Bell received the patents since he registered his invention three hours ahead.

Computer development reached interesting achievement as Tim Berners-Lee invented WWW (World Wide Web), which become the platform of current e-commerce (electronic commerce) that show significant growth in the past decades (W3 Consortium, 2007). The invention of e-commerce soon encourages business to generate new opportunity by creating corporate website and online stores that enable customers to shop online from virtually any places I the world.

This is true since internet enables borderless commerce that eliminates the existence of cross-nations trade and commerce that in 200 alone, the electronic commerce reached extensive volume of transaction about $100 – $200 billion (Litan 2000). Concerning electronic commerce, this paper will discuss about environmental forces that influence a company, Woolworths, in competing in online retailing industry. To present comprehensive analysis about strategic position of Woolworths in respective industry, this paper will use SWOT analysis and identify the company’s key success factors.

Later in the paper, there will be a recommendation regarding the strategic plan that Woolworths may adopt to strengthen their competitiveness in retailing industry. 1. Introduction In internet age, a company that provides online service must realize that web is essentially accessible by worldwide global. It means that when a company launches a Web site, it is accessible by a worldwide audience, thus customers. The coming age of internet revolution also spawns three kinds of enterprises.

First is pure traditional business; second is corporations that conduct business traditionally and through online services; third is pure online companies like Amazon. com. Regardless type of companies, in order to succeed, corporations need to develop competitive advantages in order to stand out the competition. The underlying reasons to develop competitive advantage are because technology leadership and faster time-to-market do not ensure the success of a company when competing in a market.

This situation may favor Woolworths when competing in retail industry in the UK where the country has many general and specialized retailers, each has competitive advantage that may endanger others. Historically, Woolworths is named after the company founder F. W. Woolworths in 1909. In 1980s, the company focuses on delivering four keys products: home, confectionery, kids (toys and clothing), and entertainment. In 1996, Streets Online was established and soon dragged over 450,000 registered consumers to date.

The company holds about 91. 4 percent of Street online (Woolworths Group plc, 2007b). The company, which now focuses on family, home, and entertainment business, has two official websites; the corporate website is located at www. woolworthsgroupplc. com. Meanwhile, the online store is located at www. woolworths. co. uk. By providing extensive products, Woolworths aims at providing their consumers with best value-for-money (Woolworths Group plc, 2007a)

Walmart is a multinational retail corporation, an American company. The company was founded by Sam Walton in the year of 1962 and incorporated on October 31, 1969. Headquarter is situated in Bentonville, Arkansas. Wal-Mart conducts a chain of discount department stores, hypermarkets, and grocery stores. The Wal-Mart is the world’s largest retail industry. As of 2016, Walmart has 11,527 stores and clubs in 28 countries, under a total of 63 banners. Also, Walmart is the largest private employer in the United States of America. The company operates under the Walmart name in the United States and Canada. An uncommon feature of Walmart is that it is virtually recession proof. The reason behind it is, in times of economic recession, consumers flock discount retailers.

Walmart is the world’s largest company by revenue – approximately $480 billion according to the Fortune Global 500 list in 2016 – as well as the largest private employer in the world with 2.3 million employees.

The SWOT analysis of Wal-Mart elaborates the strength, weakness, opportunities, threats for the company. It will provide a visual overview that will prompt discussion around the company’s strategy, situation, and potentiality.

Strengths

Wal-Mart is a powerful retail brand that represents value and quality. It offers value for money and convenience by offering a wide range of products. Through its associates, the company has developed the one stop shopping policy emulated by other retail stores worldwide. This strength enhances Wal-Mart’s ability- to attract new customers and maintain customer loyalty.

Walmart is estimated to be No.24 World’s Most Valuable Brand with the market capitalization brand value of USD 221.1 billion. High brand value is a clear indication of a solid health of the business, as well as, a high level of consumer loyalty. Furthermore, Walmart’s immense brand value is a clear indication of the relevance of its business model in general and its competitive advantages in particular.

Sophisticated supply chain operations is another point of strengths that contributes to Walmart’s competitive advantage. A set of efficient supply chain principles used by Walmart includes using fewer links in the supply chain, forming strategic vendor partnership and employing cross docking as an efficient inventory tactic. Moreover, Walmart supply chain operations immensely benefit from the economies of scale due to the massive scope and scale of its operations. Walmart can efficiently control and monitor its goods.

Weaknesses

Wal-Mart has also shown a weakness in the area of human resource management practices. Wal-Mart’s pursuit of its low-cost strategy has seen the company adopt some human resource policies that are not favorable to the employees. In several occasions, Wal-Mart has had to deal with labor relation conflicts, especially in the United States market. In many of these occasions, Wal-Mart has been accused of poor remuneration of workers and long working hours. Wal-Mart weak HR policies have had various impacts on the company. One of these impacts is tarnished the image of the company.

The products of Wal-Mart are known as low priced products. And for this low price, it has been dominating the industry. If the price goes up, people will start leaving the products of Wal-Mart. That’s why the company cannot offer bigger price and make more profit. Also, the business model of Wal-Mart is easily understandable. The model can be copied by anyone, even by the new companies who want to enter the market. As a result, it can make more competitors in the market which may lessen the profit margin.

Wal-Mart has experienced numerous lawsuits related to its treatment of employees, including discrimination, unequal wages, unfair promotions, unpaid overtime, poor benefits and poor work environments. This has caused the retailer significant money as well as tarnished its brand reputation.

Opportunities

The stores are currently only trade in a relatively small number of countries. Therefore ?continuing international expansion is a tremendous opportunity for Wal-Mart. This could be done in two forms. Establishing operations in new countries, and increasing market share in countries where it has operations. There are fourteen countries in South America where Wal-Mart has not operations, but it has the expertise obtained from Mexico, Chile, and others, and it has the knowledge to do that. Wal-Mart has not operations in continental Europe, and this is a huge market to be attended. On the other hand, there is actually a great opportunity for growth in developing countries and Asian markets. Increasing market share in these countries could support the Wal-Mart’s growth.

Wal-Mart has the opportunity to expand its online store and presence, including more of the emerging economies that are considering how to do their shopping online. This low overhead strategy can further the retailer’s revenue.

With its vast resources, Wal-Mart has the opportunity to take over, merge with, or form strategic alliances with other global retailers. The Wal-Mart stores are currently in a relatively small number of countries. There are therefore huge opportunities for future business in expanding consumer markets in emerging economic powerhouses including developing countries.

Threats

Wal-Mart is facing stiff competition from a large number of companies in the retail market worldwide including global retailers like TESCO, Amazon, Costco, Target, Carrefour and local stores. Intense competition could adversely affect the revenues and profitability of Wal-Mart. They face opposition and resistance from communities by local and international market like a small retailer in US and opposition of shopkeepers and retailers on introduction of Wal-Mart in India. Growing opposition to opening new stores from local communities and entry into international markets is likely to hold back expansion plans of Wal-Mart.

Wal-Mart’s entrance into the global market exposes it to political problems in the countries that you operate in. Wal-Mart is a global retailer that needs to adapt to foreign regulations and standards so as to penetrate in the global market. The company is vulnerable to the issues that would affect the country it operates in, particularly political and economic issues. Competitors in these countries may use their influence in the government to counter Wal-Mart’s penetration. They may also result to malpractices under government protection to fight off competition.

Another major threat is that of a stronger dollar. A stronger dollar internationally means that the profits will be low for Wal-Mart. The recent years saw dollar grow stronger internationally which meant that the profits of the international division of Wal-Mart had to suffer.

The Wal-Mart’s success is a case that deserves be studied. This company has reached a very strong competitive position and remarkable global-wide operations. The base for this success has been the management who has performed very well the functions of planning, organizing, leading and controlling. The today situation of the company in all of its business aspects is enviable for its competitors. However, the past success does not guarantee the next success, and Wal-Mart has a lot of work to do. Maintaining the first place is as challenging, or more, than getting there. It has great strengths and big opportunities, and its weaknesses and threats are challenging but not overwhelming. These weaknesses and threats require attention and could be turned, by an effective management, in new opportunities and strengths.

References

• Walmart Wikipedia [https://en.wikipedia.org/wiki/Walmart]
• Forbes: The World’s Biggest Public Companies [https://www.forbes.com/companies/wal-mart-stores/]
• SWOT Analysis Of Wal-Mart [http://www.businessteacher.org.uk/guides/business/swot/swot-analysis-of-wal-mart.php]

Chipotle Mexican Grill, Inc. is an American chain of fast-casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission-style burritos. Its name derives from chipotle, the Nahuatl name for a smoked and dried jalapeño chili pepper. The company currently trades on the New York Stock Exchange under the ticker symbol CMG. The company has own chipotle strengths and weaknesses, released a mission statement called Food with Integrity, which highlights its efforts in using naturally-grown ingredients, and serves more naturally raised meat than any other restaurant chain. Chipotle is one of the first chains of fast casual dining establishments.

The company’s restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla), salads, and extra dishes such as salsas, guacamole, cheese and lettuce. Chipotle also offers sodas, organic milk and fruit drinks in its restaurants. It offers bottled drinks, soft drinks, beer and margaritas. The company sells these products under the Chipotle, ShopHouse and Pizzeria Locale brands. Chipotle is headquartered in Denver, Colorado, the US.

Chipotle Mexican Grill, Inc. had 2,250 restaurants in operation as of December 31, 2016. They plan to increase the number of restaurants significantly, and plan to open between 195 and 210 new restaurants in 2017.

SWOT analysis of chipotle

Strengths

Financial Strength – Chipotle is very strong financially as it has no debts in its record. The company has a very strong daily cash flow and has very good relationship with its vendors. Chipotle’s strong financial strength is showing them the path to buy back their shares from the investors, which will keep them in good stead and show an even healthier balance sheet.

Innovation – Chipotle is innovative. Chipotle founder and CEO, Steve Ells, focused on making his restaurants have “food with integrity”. He implemented low roller menus, which consist of smaller portion sizes, reasonable prices, and even a children’s menu. Ells also placed vegan-friendly and gluten-free items on the menu to satisfy customer’s different wants and needs. Chipotle also runs on energy-saving features such as onsite wind turbines. Ells made Chipotle an eco-friendly environment for all.

Marketing Initiatives – Chipotle is marketing the brand not only through conventional mediums such as TV, print etc. but also through digital media, music and content programs which include ‘Cultivate’ festivals of food, music, ideas etc. Such initiatives create a word-of-mouth and thus organic publicity about Chipotle.

Quality Conscious – Chipotle has been extremely sensitive to the quality of the products used. It has a very complex supply chain management instead for just a handful of vendors on whom to depend on the raw materials. Chipotle procures its raw materials from local small time farmers and ensures proper DNA testing to assure good quality products delivered to the consumer.

Weaknesses

Limited Food Items on the Menu – The limited nature of Chipotle’s menu may drive customers to competitors. Also, there are few promotions for frequent customers to enjoy. Chipotle’s brand loyalty program, Farm Team, is an exclusive offering that sends invitations to customers based on their “passion” not on frequency of purchases. Users can receive deals on meals once they gain access to the website and participate in games and surveys. Since these rewards require more effort to receive, customers may prefer a competitor who has cheaper prices or provides more opportunities to save money. Lastly, Chipotle’s marketing department creates short films instead of commercials for television. This limits their reach and effectiveness because consumers have short attention ps and many will not go out of their way to find these films online.

Higher Price Points – Chipotle specializes in burritos and tacos and presents them with a superior quality and hence has a higher price point than the competitors. This becomes a disadvantage as people look out for cheaper alternatives.

Chipotle E. coli Outbreak – Chipotle was in the limelight recently because of the sudden E.coli outbreak found in a few of their food products. There was a drastic reduction in the regular customers who rather changed paths to competition.

Opportunities

Global Expansion – Chipotle has a huge opportunity left to tread the global market. Chipotle has a majority of its food outlets in the US and just a handful in Europe and Canada. As compared to the competition, it has a long way to go to tap the international market which will contribute majorly to the revenues. Chipotle could look at Asia, which is one of the leading emerging markets which lie untapped by many.

People Are More Health-Conscious – Chipotle is at an advantage because its food offerings already cater to health conscious consumers. As the trend of consuming natural, organic foods continues to grow domestically and abroad, Chipotle’s target market and profits will do the same. Western Europe could provide substantial business considering American fast food chains such as McDonald’s and Kentucky Fried Chicken have penetrated those markets and succeeded. It is also possible that as suppliers become aware of this trend, they will use environmentally friendly and sustainable methods for their crops, therefore increasing the number of potential suppliers for Chipotle.

New Product Categories – Chipotle essentially has four product categories at its restaurants: burritos, tacos, burrito bowls (a burrito without the tortilla), and salads. The company could introduce other product categories to its menu, focusing on other Mexican offerings that could expand sales. The company can also grow its non-Mexican offerings through its ShopHouse Southeast Asian Kitchen and Pizzeria Locale restaurants. It currently has fewer than 20 of these restaurants, and could greatly expand these if they continue to perform well.

Threats

Competition – Chipotle had stiff competition since its inception. The fast food industry has grown manifold and has an array of brands offering their products. With smart pricing, strategic location and customer friendly approach the industry has more scope to grow. There are both national as well as international players offering more or less the products with similar service and business strategies.

Economic Slowdown – The economic slowdown and less disposable income are affecting everyone, but especially the restaurant industry. IbisWorld says that people are choosing to eat home-cooked meals instead of going out to eat. When they do go out to eat, average consumers are choosing to purchase lower-priced items. Chipotle is no different, except for the fact that they have a higher price point than restaurants like McDonald’s that have value menus.

Increase in Food Safety Regulations – The industry is subjected to various food safety regulations in various countries in which Chipotle is present. This increases company’s compliance cost and hence affects operating margins. Also, any further changes in food safety laws can affect the industry.

References

• Chipotle Mexican Grill Wikipedia [https://en.wikipedia.org/wiki/Chipotle_Mexican_Grill]
• 2016 Annual Report
• Chipotle E. coli outbreak reaches six states, shares tumble

This paper looks at IKEA, one of the global leading furniture retailers and a very successful brand. It examines the environment in which IKEA operates using SWOT, PESTEL, Porter’s 5 Forces and Value chain analyses to inspect the attractiveness and competitiveness of the industry. Conclusions are also made.

1. Introduction and Company overview

IKEA, a global furniture retailer, is established on the concept of offering wide range of functional, well-designed and low-cost home furnishing products. The IKEA concept journey continues with its global operations (The IKEA concept, 2012) in 40 countries, with 330 stores and 154,000 workers. The sales turnover is recorded as 27.5 billion for the year 2012 (Inter IKEA Systems B.V., 2012). Inter IKEA Systems B.V. owns IKEA retail system, IKEA concept and IKEA franchisor. The business model closely embraces ‘franchising’ it as means of rapid growth. Initiated its operations as a seller of home furnishing products, IKEA today diversifies its products into prefabricated housing and food (Inter IKEA Systems B.V., 2012). This report takes a strategic analysis of IKEA through employing PESTEL, SWOT, Porter’s 5 forces and Value chain analysis tools.

2. PESTEL analysis

2.1. Political

• The level of corporate tax and consumer taxation regulated by political authorities of any country affects corporation’s after-tax income. The rate of corporate tax (tax that corporation pays on its profits and not on income) impacts profits, hence lowering after-tax income. For example, with an illustrative purpose only, UK tax businesses for 30% of their profits for operating in the UK, United States tax 35% and Japan imposes highest of all, 42 % (PwC, 2012).
• Hence, IKEA regional profits are subject to regional tax laws. However the specific characteristic such as subsidiary model (The IKEA Group, 2012, p.1) of the furniture retailer also plays a major role in the actual tax rate. It is also learnt that corporate tax rate impacts the structure of the business. IKEA business structure, a subsidiary model (Interview by Gareth Bell, 2012) propels its subsidiaries to abide by regional tax laws.
• • Addition to corporate tax, tariff and trade barriers also impact businesses. Some of the major reasons for imposing tariffs and trade barriers such as protecting local employment, new industries, consumers, retaliation and national security, tariffs increase the prices of imported products into the country (Kourdoumpalou and Karagiorgos, 2012). This benefit the local producers who are not forced to reduce their prices, however local consumer pay higher prices (Reynoso, 2009; Rindel et al., 2011; Hellström and Nilsson, 2011). Considering the case of IKEA and its reliance on local manufacturers for its products rather than importing products into the local market, tariffs and trade barriers seemingly have little influence on its business profits. •
• Most importantly, political stability of any country affects business operations. As an example after the fall of communist government in Poland, political situation drastically transformed, affecting the buyer-supplier relationship of IKEA. Similarly 20-30 years ago, some of the IKEA East German suppliers forced political prisoners to manufacture products that were sold to IKEA (The Blaze, 2012a). The retailer’s involvement with accused suppliers, in the midst of political instability of a country, negatively affects business and consumer perception of the corporation.

2.2. Economical

• Economic growth of individual markets has its influence on businesses. For example, rapidly growing economies provide higher standard of living and higher employment rate. As a result, consumers’ disposable income increases and so does their purchase power, ultimately benefiting business profits (Reynoso, 2009). In particular with the emerging economies showing high potential of economic growth, provides a promising future (Thelander, 2009) for corporation such as IKEA.
• • Other factors such as cost of labour also impact business success. In regions such as India and China popular for their low-cost yet skilled labour, provides IKEA with a wide profit margin.
• • Inflation rate is another important factor affecting business and consumer experience. For instance, high inflation rate such as in the UK (BBC News, 2012) deforms consumer behaviour, destabilising markets and generates avoidable shortages of resources (Zentes and Schramm-Klein, 2007). Similarly, in countries with high inflation rate, trade unions demand higher wages, distorting the entire value chain.
• • Lastly, market trends should be closely observed to make strategic decisions benefiting the business.

2.3. Social

• Social factors such as modifications in demographic variables (income, age, family size etc.) of different countries significantly influence the strategic decisions made by the business. As an example, ageing population is less likely to buy furniture (Mintel Oxygen, 2010) where as younger generation would demand trendy furniture that should also add value to their purchase.
• Demand of certain products is controlled by changes in demographics. As an example, a major shift of rural population to urban areas due to job creation indicates higher demand of less costly products for new families to get settled.
• Similarly, cultural factors, fashion trends and consumer behaviour also regulate demand trendier, less bulky, and easy-to-assemble furniture.

2.4. Technological

• Emergence of technology particularly popular with in the retail sector such as RFID (Radio Frequency Identification), and online and mobile shopping, has immensely benefited corporations. RFID helps businesses to reduce their cost of operations through inventory shrinkage, smart labelling, self-stocking, efficient checkout process etc. (Gaukler, 2010).
• Further on easy access to retailer’s online stores provides enormous selling opportunities for the seller. In addition, technological innovations in the retail sector like consumer mobile payment, and mobile gift cards promises consumer to experience easier, and reliable means of payment (Reynoso, 2009).
• The increasing popularity and reliance of businesses on social media as an unconventional marketing channel, benefits firms by increasing awareness and reach amongst target market, marketability factor, increased website traffic, ability to develop community and relationship with customers (Forbes.com, 2012) and so forth.

2.5. Environmental

• Factors such as ethical business operations demonstrating sensitivity and accountability towards carbon-emission, forestry, community development, and supplier conduct issues are significantly important for business success and sustainability.
• Industrial giants such as IKEA are constantly scrutinised for their contribution towards carbon emission, disposal of hazardous manufacturing waste in the environment, recycling, and supplier behaviour. Therefore local governments ensure that environment can be protected, compelling businesses to meet specific standards to reduce the adverse affect of business activities. Compliance with these regulations is one of the most essential success factors.

2.6.Legal

• Consumer protection legislations restrict the business in terms of what they are permitted to do along with adding cost to business operations. This means that products that are manufactured must comply with the consumer protection legislations of respective country of operations. In the UK, Sale of Goods Act 1979 requires products to be sold in good quality with no faults or problems, should serve the purpose, and must be described for the purpose they serve (legislation.gov.uk, 2012). So the additional costs come from changing business practices, compliance with the law, damaged reputation and image within the consumer market etc. that is ultimately borne by the corporation (Reynoso, 2009; Hellström and Nilsson, 2011).
• Other legislative requirements such as employee protection, health and safety at work etc. demand proximity of business objectives with the local legislations. For instance, IKEA is lately accused to be contradicting with its Group values, when the Saudi version of retailer’s catalogue airbrushes women model out (The Blaze, 2012b). Even though the company was complying with local laws against advertising women in Saudi Arabia, nevertheless accusation of contradicting with its Group value (i.e. against gender discrimination) is likely to alter consumer perception towards the corporation.

3. Porter’s 5 forces analysis

Porter’s 5 forces, an analytical tool is a tool that analyses industrial structure in accordance with the 5 competitive industrial forces (Raab, 2012). This model is commonly used to analyse the drawing power of a specific industry where corporation operates, consequently determining the probability of a corporation’s profit making in the given industry. Presented below, is the Porter’s 5 forces analysis of IKEA.

3.1.Competitive rivalry among firms

IKEA operates in an extremely competitive industry, defined by many other lowpriced, good quality furniture manufacturers namely Galiform, Euromarket Designs Inc., Argos and so forth. Given the attractiveness of the of DIY (Do-it-yourself) furniture industry, IKEA continues to compete and grow in markets such as China, and Japan. Nonetheless, global recession had affected the furniture industry, one of the hardest hit industry then other sectors. As a result previously premium-priced furniture manufacturers Dreams (UK) is now reported to increase its market share (Mintel Oxygen, 2010) against IKEA, thus making competition even fiercer. However, considering that furniture is now low spending priority according to consumer behaviour affected by recession, competitive rivalry is likely to diminish.

3.2.Threats of new entrants

This force is considered weak and the probability of development of new competition for the furniture retailer is insubstantial, due to market saturation, high amount of capital investment, and skilled labour required to become a global giant in discountedDIY- furniture manufacturing sector. Other factors such as suffering of pricy-labelled household items and furniture considered as a low spending priority (Mintel Oxygen, 2010) due to recessed economies, further weakens this industrial force.

3.3. Bargaining power of suppliers

This force is weak because suppliers of IKEA are constantly competing to maintain their relationship with the global giant who can easily access resources and capabilities in the form of potential suppliers, seeking opportunities to form affiliation with IKEA. However, IKEA values to create the strategic relationships with suppliers, to empower its suppliers in certain extent excluding their bargaining power. Therefore, this weak industrial force in case of IKEA actually sanctions the corporation to optimise resources and maximise its profits.

3.4. Bargaining power of buyers

This force is strengthening by factors such as intense competition, and wide choice of substitute products. Nevertheless, the threat of substitute products is weak because of IKEA unbeatable expertise in manufacturing low-cost, good-quality flat pack furniture. On the other hand, buyer power
is also controlled by IKEA growth strategy of opening its stores

3.5. Threat of substitutes

As mentioned above, threat of substitutes is weak force here. IKEA specializes in manufacturing functional, low-cost, good-quality furniture. Even though customer retention rate remains best with IKEA and Argos, nonetheless combination of IKEA characteristics remains un-matched by its competitors. IKEA brand perception ‘trendy’ also surpass Argos ‘affordability’ and John Lewis ‘quality’ (Mintel Oxygen, 2010), due to unmatched product and service functionality.

4. SWOT analysis

SWOT analysis, a strategic tool that helps corporations to identify their strengths, weaknesses, opportunities and threats. Since the firm ultimately controls its strengths and weaknesses, this analytical tool helps firms improve their competitive advantage. Opportunities and threats reside in the external environment, however through transforming weaknesses into strengths, a firm can deflate threats and grasps opportunities. Presented below is the SWOT analysis of IKEA.

4.1.Strengths

• The key strength of IKEA is application of strategic practices such as optimising material to reduce manufacturing cost, development of manufacturing plants to optimise use of recycled material. In addition, the Corporation uses innovative technologies such as catalogue iPhone application to facilitate consumer experience (Mintel Oxygen, 2010).
• IKEA is also considered as leading specialist in the retail furniture manufacturing industry, with a strong brand image. The strong global brand targeting key consumer groups, offers uniformity in quality and product range across the globe. The right approach to strike off balance between quality, design, functionality and cost, gives IKEA cost and competitive advantage in the highly competitive market.

4.2. Weaknesses

• Highly competitive market brings IKEA weaknesses such as magnitude of the global business that is or isn’t capable of managing stakeholders, product differentiation, suppliers’ issues of not abiding by IKEA Group Code (IWAY code) in to limelight. Other weaknesses of IKEA i.e. ineffective communication and information exchange with its consumers and stakeholders due to huge scale of business operations are also identified (Johansson et al., 2008).
• Specific to the UK market, perhaps these weaknesses are resulting in providing competitive advantage to Argos as it beats IKEA in terms of most
  visited furniture retailer (Mintel Oxygen, 2010).
• Another competitor of IKEA, DFS also beats IKEA in terms of biggest furniture advertiser. Mintel Oxygen (2010) also indicates lowered market share, where only 3 in 10 buyers, buy furniture from IKEA.

4.3. Opportunities

• Several opportunities lie ahead for IKEA due to recent purchase trend from DIY stores in the furniture sector. Opportunities also arise from factors influencing consumer purchase decisions such as desire of quality, special discounts and offers, and excellent and competitive customer service.
• There is also an increasing demand in green (eco-friendly), and low-priced products manufactured with sensitivity towards the environments.
• IKEA aims to reduce carbon emission, and achieve zero wastage targets coupled with improved relationship with stakeholders, suppliers and consumers, that provides massive opportunities resulting in business sustainability, competitiveness and higher profits.

4.4. Threats

• The global recession and suppliers’ issues particularly threaten IKEA.
• Furthermore, social trends showing lowered entrance of first-time buyers into the housing market also affect furniture sale (Mintel Oxygen, 2012) .
• Increasing competition and lowered disposable income are factors that motivate buyers to purchase low price furniture, even at the cost of compromising quality. Threats such as these, demands the furnishing giant to reform its value chain, and optimise innovative technology in order to provide good quality at lowered prices (Tarnovskaya, 2012; Johansson et al., 2008).
• Strategic development in this regard would also raise entrant barriers into the industry, providing possibilities to maintain and increase its market share.

5. Conclusion

Given the success of IKEA as a global brand, improved performance levels can be achieved through closely examining it’s external and competitive environment that in turn enables the firm to make most out of available opportunities. The analysis identifies that a proactive and dynamic approach is adapted by IKEA to maintain its competitive edge however transforming its weaknesses into strengths can further strengthen the brand. With an aim to add further value to its value chain, IKEA has immense opportunity to establish a stronger relationship with its customers.

6. References

1. Andersen, M. Skjoett-Larsen, T. (2009) “Corporate social responsibility in global supply chains”, Supply Chain Management: An International Journal, Vol. 14 Iss: 2, pp.75 – 86
2. BBC News (2012) UK inflation rate rises to 2.7% in October [online] Available at: http://www.bbc.co.uk/news/business-20310102 [accessed on 9 December 2012]
3. Forbes.com (2012) ½ Ways to Take Advantage of “Social SEO” [online] Available at: http://www.forbes.com/sites/cherylsnappconner/2012/12/02/10- %C2%BD-ways-to-take-advantage-of-social-seo/ [accessed on 9 December 2012]
4. IKEA corporate webpage (2012), IKEA corporate webpage available at: www.ikeagroup.ikea.com [accessed on 9 December 2012] Interview by Gareth Bell, (2012),”Interview with Anders Dahlvig”, Strategic Direction, Vol. 28 Iss: 5 pp. 34 – 36
5. Friedman, T. (2006), World is Flat, the Globalized World in the Twenty-first Century, Penguin Books, New York, NY. legislation.gov.uk (2012) Sales of Goods Act 1979 [online] Available at: http://www.legislation.gov.uk/ukpga/1979/54 [accessed on 9 December 2012]
6. Mintel Oxygen (2012) Furniture Retailing – UK – August 2012, Mintel Oxygen Mintel Oxygen (2010) Furniture Retailing UK- August 2010, Mintel Oxygen PwC (2012) Corporate income tax- a global analysis Porter, M. 1985, Competitive Advantage: Creating and Sustaining Superior Performance.
7. Gaukler, G. (2010) “Preventing avoidable stock outs: the impact of item-level RFID in retail”, Journal of Business ; Industrial Marketing, Vol. 25 Iss: 8, pp.572 – 581 Hu, H., and Jasper, C.R. (2006) Social cues in the store environment and their impact on store image. International Journal of Retail and Distribution Management, Vol. 34, Iss: 1, pp. 25-48
8. Hellström, D. Nilsson, F. (2011) “Logistics-driven packaging innovation: a case study at IKEA”, International Journal of Retail ; Distribution Management, Vol. 39 Iss: 9, pp.638 – 657
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