Swot Analysis

In the competitive world of fashion design, Giorgio Armani and Stella McCartney are examples of those that have made it globally in the industry. Giorgio Armani is an Italian fashion designer born in 1934. Armani Company was founded in 1974 and by 2001 he was acclaimed as the most successful Italian designer with a personal fortune of over 4 billion dollars (Krebs, 2007). The company designs and manufactures a variety of products that include fashion accessories, cosmetics, jewellery, eyewear, watches, fragrances and many more.

Up to date he has over 13 factories all over the world and nearly 300 stores in 36 countries (Informat, 2007) Stella McCartney is an English fashion designer born in 1971 in London. She studied fashion design in college in early 1990’s and her collections in 1995 were modelled by supermodels like Naomi Campbell and Kate Moss. She was appointed chief designer of Paris house called Chloe in 1997 and left in 2001 to enter into a joint venture with Gucci group. Her first products shop opened in New York in 2003 and spread to London, and Los Angeles (Informat, 2007). Since then she is steady in the industry.

 To create a strategic marketing plan with a management focus.

Strengths

Giorgio Armani – Was formed in 1974 and already enjoys a rising and steady market. – It designs and manufactures a variety of products like jewellery, cosmetics and others which have a well established market (Davis, 2001).  It Styled up Richard Gere in the 1980 film ‘American Gigolo’ earning it great publicity.  Has superb Market performance with access to quality resources for production. – Has a good management that controls its business investments all over the world

Boosts of a good reputation since it started operating in many countries.Has high quality products with clothes made out of the finest fabrics and materials. Stella McCartney  Enjoys vibrant talent that has developed with time.  Experience growing from collaborations with big companies like Gucci – Enjoys fame especially after modelling supermodels like Campbell and Kate Moss (Informat, 2007). Awarded the VHI/Vogue Fashion and Music 2000 Designer of the year award.

Weaknesses

Giorgio Armani  High operational costs in many stores and factories worldwide. Management strain with the growing number of workers worldwide. – High product costs that limit potential customers – Lack of specialization and dealing with many products at once (Davis, 2001).  Stella McCartney – High operation costs that hamper worldwide development of the products.  Costly products those are only affordable by few. – Limited market experience since products have not been in the market for long.

Opportunities

Giorgio Armani – Ever growing international market for the products produced (Informat, 2007). Reliable administration and manufacturers that help in production of new products. – Improved technological advancement that enables production of high quality products. – Minimal international trade barriers that can enable the company to expand even more. Stella McCartney – A growing number of unfulfilled customer needs that provide extra market. Growing public admiration that can influence market for the products. Changing market trends that accommodate new products in the market. – Improved supply systems that can enable producers reach a worldwide market easily.

Threats

Giorgio Armani – Emerging competing companies with more affordable substitute products – Increased taxation from various worldwide markets that can lower free market access.  Ever changing market trends that can affect production rate.  Growing political unrests in various countries that limit worldwide marketing. Stella McCartney – Growing number of other competing products in the market.  Slow expansion of the market to other countries due to cultural diversity.  Criticism from outsiders on the ability of the management to steer the company further. Declining economies in many countries that affect marketing.

Reference

1. Davis, B. (2001) Giorgio Armani: A master of his craft. New York magazine fashion. Retrieved on 29th Jan 2008 from; http://www. nymag. com/fashion/fashionshows/designers/bios/giorgioarmani/
2. Krebs, J. (2007). Giorgio Armani biography and profiles of fashion designers. Retrieved on 29th Jan 2008 from; http://www. informat. com/whoswho/giorgioarmani. html
3. Informat inc. (2007). Stella McCartney Biography and profiles of fashion designers Retrieved on 29th Jan 2008 from; http://www. informat. com/whoswho/stellamaccartney. html

There is the SWOT analysis for Lays. Strengths are brand recognition, early mover advantage as well as large capital from Pepsi Co. Employing umbrella-branding strategy, Pepsi Co introduced the Lay to the Chinese market as a specific chip brand. In 1993, when there were no chip companies in China, Lays grew large and stable customer sizes as an early mover into the industry. Pepsi had enormous money to develop in the Chinese market, which was another advantage.

However, it has three main weaknesses. The quality of tosses, expensive labor cost as well as inefficient integration strategies.

By expanding the planting area in China, Lays seems less likely to guarantee the quality of their potatoes. Besides, increasing labor cost in China is a critical problem now that may deduct their profit. Pepsi Co. Has various product mix in China and it didn’t integrate them well to make a considerable profit.

Opportunities are quite self- explanatory. Huge potential growth in China, emerge into another Asian markets and modification of Chinese agriculture. China has 1. 4 billion people right now and it has he largest population in the world.

Besides, other Asian countries, for example, India, attracts Lays to get emerged as well. When growing potatoes in China, it imperceptibly changed the way that Chinese farmers plant potato with American technology, which is strategic collaboration. As for threats, Lays is facing the modification of Chinese agriculture, wealth consciousness, and the government influence. Since modification has two sides, it coaches local farmers how to plant potatoes on the one hand, on the other hand, it is likely that the government will step in and not let Lays get things done in its way.

nowledge is the most significant economic and social force of the 21st century, and higher education will see its importance and influence to grow in the coming decades. At the same time, as in other industries and sectors, extraordinary, rapid change has become a constant for institutions of higher education. This dynamic environment provides challenges and opportunities as well, which Is why Trine university Marketing 303 class has spent the last eight weeks putting together a comprehensive marketing plan process to examine a variety of marketing and enrollment issues facing Trine university outreach campuses.

Since its beginning in 1884 in Angola, Indiana, Trine University has experienced significant periods of growth and change while preparing students for career success. While this growth and change mainly took place at the University’s mall campus, It Is now entering a new phase of growth and change. This growth and change is happening with Trine university outreach campuses. Trine University’s mission for the outreach campuses is “to provide accessible educational opportunities that are responsive to the needs of today’s diverse population and lead to meaningful careers and lifelong learning.

To accomplish our session, we have set forth the following goals: Acquire our own learning facility Higher enrollment rate Promote associates, bachelors, and master degrees to spark more interest in attending the campus Add new degrees to current programs Offer tuition discounts and incentives Make scheduling classes easier and more available Reach out to Individuals and employers In the community wishing to better their education Achieve top school ranking in community To guide and later help assess the marketing plan and its effectiveness, the Marketing 303 class produced a SOOT analysis to help provide direction and serve as basis for the development of a marketing plan which promotes Trine university’s outreach campuses. We hope to accomplish this by assessing what we perceive to be the university’s strengths, weaknesses, opportunities, and threats related to achieving these strategies.

A section with these results is presented later in the marketing plan in its entirety, but a few comments are listed below. Trine University views undergraduate education as central to its mission and will students to be productive, contributing members of society. To sustain Trine University reputation of overall excellence in selected areas of graduate and repressions education, resources will be focused on creating and strengthening areas of graduate study in a manner that is responsive to regional needs. To promote the recruitment, retention, and success of its students, Trine University will provide an environment rich in human diversity, with dedicated support services, in an outstanding instructional facilities.

Trine University will create an empowered group of diverse, unified, committed and motivated employees who will focus their collective skills, talents, and knowledge toward realization of the university mission and vision. Trine University believes that continuous planning and evaluation are needed to effectively chart the future of the university outreach campuses, and therefore will increase its self-assessment. Trine University will secure, allocate or redirect human, physical and financial resources in a manner that enhances the university mission and vision. The two initial targets for Trine University will be high school students and students looking to pursue their bachelor degree that already has associates.

Priority, however, will be given to high school students because we will be able to reach out to them nice they will be starting their degree from fresh. Gone are the days when marketing and communication offices can control the content produced about universities. The internet has emerged as a place where users are active, co-creators of content and social networking in mainstream. Social media has surpassed e-mail as an online activity. More than ever, relevant, timely and engaging content is key in any marketing campaign. In the past year, Trine University Backbone, Twitter and Youth presence are on the rise and changing the way the students and the university are communicating.

To effectively communicate and market to existing and prospective student, Trine University must use a variety of strategies, based on the target audience communication style, and constantly re-evaluate its marketing methods and messages to meet our diverse student population. Trine currently has a student enrollment of 1,791 students per year. They are projected to grow at approximately 8. 1% per year making their enrollment 1,935 in 2013 and 2,091 in 2014. They currently have a tuition cost of $25,400. 00 per year and $1 ,600. 00 in other expenses (such as books, lab fees & other miscellaneous costs). Trine has 52. 5 million per year in annual sales and 1. 53 million in net income.

Trine’s tuition is higher than Harrison College and II-JPL’S but less than Indiana Wesleyan. The organizational structure of Trine University outreach campuses will appear in its entirety in a later section; however, the following few comments will briefly summarize Marketing 303 class’ ideas on a working organizational structure. We and students to feel there is a local individual they can physically call or go see in an office setting. This individual will act as a liaison between the Student Support Specialist and Trine University’s main campus. This will help promote the feeling that Trine University is committed to the growth of its outreach campuses.

A successful marketing plan depends upon how well a company can blend its people and get the job done. If everyone is on the same page and know what it is they are striving to accomplish, the possibilities of success, are endless. Performance of this plan must be measured, and this means standards must be developed against which performance can be evaluated. The importance of proper and timely evaluation cannot be overlooked. Communication between the business and the customer is essential for success. Customers will often try a new product “one time”. If they are not pleased with the product they will look elsewhere. There’s a time and place for thinking and doing.

We make both happen at Trine University. Founded in 1884, we’re known for our rigorous academic programs, exceptional faculty, and hands-on experiences that lead to real-world, skill-based knowledge. The results are phenomenal. The rate at which Trine students find work related to their majors within six months of graduation-?at 92 percent-?is among the highest in the country. Our graduates’ starting salaries exceed the national average in every category. Explore – Experience – Excel We’re a private, non-denominational institution that grants associates, bachelors, and master’s degrees in more than 30 programs on campus, online, and at four regional education centers.

With only 1 ,450 students, our small class sizes ensure one-on-one attention with faculty who bring their own workplace experience into the classroom. We focus on active participation through more than 60 student organizations, competitive intercollegiate athletics, and extensive co-pop and internship opportunities. You will also find our nationally recognized education affordable. We award more than $10 million in grants and scholarships annually; more than 90 percent of our students receive some form of financial aid. STRATEGIC FOCUS AND PLAN Mission Trine University mission for the outreach campuses is “to provide accessible educational opportunities that are responsive to the needs of today’s diverse population and lead to meaningful careers and lifelong learning.

Goals For future years, Trine University-Columbus seeks to achieve the following goals: Reach out to individuals and employers in the community wishing to better their Core Competency and Sustainable Competitive Advantage In terms of core competency, Trine University outreach campuses seek to achieve ability by 1) providing high-quality learning experiences not only in learning but also in hands on projects and by 2) providing outstanding graduates to be successful. To translate these core competencies into a sustainable competitive advantage, Trine University outreach campuses will work closely with their students to achieve the best satisfactory education possible.

SITUATION ANALYSIS The ultimate goal of Marketing 303 class is to produce a SOOT analysis which will elf provide direction and serve as a basis for the development of a marketing plan to promote Trine University’s outreach campuses. We hope to accomplish this by assessing what we perceive to be Trine University strengths, weaknesses, opportunities, and threats. SOOT Analysts Marketing 303 class produced a SOOT analysis. Strengths: Responsiveness to students and education needs Academically able students Effective teaching Supportive environment for teaching and learning Demonstrable results Substantial scholarship / financial aid resources and support Weaknesses: Distinguishing qualities and identity not well known

Lack of strong, pervasive presence in the external community Operational structure of regional outreach campuses Too large a percentage of classes taught by part-timers Limited resources for faculty, staff, and students of regional outreach campuses Adjustment to pressures of growth Make presence known Expand recruitment starting at the high school level More conversations and partnerships with local employers Developing and even better niche within the rapidly developing market for on- demand education Expand possible technological competitive advantage – technology has made programs from around the state, nation and world accessible to anyone with an internet connection so a student can still feel like they are getting a true classroom environment Responsiveness to students – although responsiveness to students is a strength of Trine University, it also offers the opportunity for more rewarding efforts.

Students are more than customers; they are participants in, contributors to, and products of a highly structured learning environment and developmental process Threats: Pressure to grow at expense of quality Growing competition from nearby universities – physically and virtually Recruiting and retain high quality faculty and staff given increasing competition Rapidly advancing technology poses the most far-reaching, unavoidable, and unpredictable threat to institutional stability and competitiveness Enhancing and maintaining access to the University for minority, low income, and first-generation students Possible uncertainty of off-campus operations Competitors Indiana Wesleyan University Phoenix University Harrison College PICKUP Ivy Tech Target Audience High School Students College Students Ethnic Community Community Members Customer Profile Profiles help us to gain a deeper understanding of the audiences we are trying to reach by providing details into demographics, technocracies, chirography’s and alee and lifestyles (VAL’S). High School Student Profile Demographics 16-18 years old County Resident Limited income Live with parents Technocracies Immersed in technology Active in social networks – text and chat are primary Chirography’s Generation Me – seeks attention, feedback, lofty beliefs Value and Lifestyles (VAL’S)- Experiences High resource group motivated by self-expression Energetic, active and social College Student Profile 18-25 years old Work part-time May have children Living on their own for the first time Receive financial aid Ethnic Community Member Profile Spanish speaking

Bicameral Limited understanding of higher education environment Prefer traditional media Those who favor speaking English to speaking Spanish, use more technology Strong family values Challenged by family barriers to education Impressionable and likely to emulate people they admire Motivated by achievement Community Member Profile Age 26 + County business leader – owners and managers Financially stable with expendable income Parents of high school age children Have access to technology, but not avid users Use internet to research products / services Predominantly e-mail users Use some social networks Values reputation and success Values education as a way to accomplish goals Successful people who get satisfaction from their career and family MARKETING PRODUCT FOCUS This section describes the 1 year marketing and product objectives for Trine University-outreach campus and the target markets, points of difference, and positioning.

Marketing and Product Objectives Current markets. Current markets will be grown by expanding student awareness of the Columbus campus. New markets. By the end of the first year, we hope to have new students and a huge population growth to our campus. New products. By adding associates degrees, we see more expansion of students. Target Markets Two initial targets for Trine University outreach campus will be high school students and students looking to pursue their bachelor degree that already has their associates. Priority, however will be given to high school students because will be able to reach out to them since they will be starting their degree from fresh.

Points of Difference Continuous improvements in education Qualified personnel Uniqueness of its professional service More diversity in student body Positioning students or hard to identify. We are hoping to position it easier on students to identify who we are, what we stand for and why they should attend our campus. Marketing Program The four marketing mix elements of the Trine University Marketing Plan are detailed below with the purpose of increasing the overall visibility of Trine University outreach campuses. Product Strategy Product line Trine University grants associate, baccalaureate, and master’s degrees through exceptional programs offering career-oriented, hands-on learning and student- focused teaching via Trine’s 450-acre main residential campus in Angola, but also at he eight outreach campuses listed below.

Avon Columbus Fort Wayne Howe Indianapolis Alligators Chervil’s South Bend Warsaw Unique Product Quality Trine University understands and appreciates that the students have many choices in achieving their educational goals. Trine is committed to providing students with an innovative learning experience that many other institutions do not offer. Trine students should expect, Quality Trine continuously evaluates and assesses each degree program, student experiences, and student employment success Nationally recognized examinations ND certifications ensure Trine students have the edge to secure employment at a rate of nearly 92 percent Affordability Various Scholarships and Financial Aid Programs are available to students who qualify U. S.

News & World Report ranks Trine as one of the top colleges and universities whose graduates carry the least amount of debt Ninety-eight percent of No expiration date on transfer credits from any accredited College or University Convenience and Flexibility Eight week accelerated courses Face-to-Face classes at outreach campuses or online courses available anytime, anyplace, anywhere Attention Trine brings workplace and educational experience into the classroom via well respected faculty to combine theory with hands-on learning They challenge you with rigorous academics but offer support and personal attention Technologically Advanced The laptop program ensures all students have the same technology and advantages inside and outside the classroom textbooks reduce the cost of textbooks by nearly 50 percent while also providing new tools such as the electronic highlighter, electronic note taking, note sharing, and the ability to collaborate with other students Packaging Personal attention is Trine’s hallmark. It is the packaging that makes them standout among other universities and colleges. Students are not Just a number but the future. Trine University takes this seriously and assists the students in their endeavors to Explore – Experience – Excel in all they do not Just while a Trine University student, but when they move into their chosen career. Price Strategy Students want the best value, high-quality education at a price they can afford. Trine University works hard to excel at both.

Our hands-on learning and personal attention room dedicated professors provide the edge you, the student, need to launch a successful career or move up in your current organization. Trine University is an affordable private university with costs in the mid-range for private colleges in Indiana. Our graduates enter the workforce carrying the least amount of debt among graduates nationwide, according to U. S. News and World Report. Promotion Strategy Key promotion marketing strategies will be a combination of the following marketing channels in an effort to reach potential students. Mass marketing combined with targeted campaigns are designed to maximize communication.

Traditional Media Develop new print and presentation materials to connect with potential students Use past students success stories to help motivate current and potential students TV/ Radio Print Outdoor Traditional Media Add video Develop text message options for accessing information about Trine Web advertising E-mail marketing Mobile-to-mobile Social Media Start or continue to build a Backbone community Connect with the business community via social networking Backbone Blobs and micro blobs You Tube Earned Media Create a public relations campaign to get Trine University key messages in the news Use the media to further position Trine University as the premier provider of tomorrow’s workforce Print editorial coverage TV/Radio broadcast coverage Web coverage through blobs Promotions Place (Distribution) Strategy Trine University will attract other students by using a mixture of traditional and online advertising strategies listed above to create a grassroots marketing campaign. Trine will recruit current students to fill these outreach campuses marketing positions. It will further demonstrate that personal touch that Trine University is so noted for.

The first Parkinson store opened in Stanley, Hong Kong in 1973. For a decade the tore remained a local retailer until the mid-sass when it began to expand outside Hong Kong. Parkinson has more than 200 stores and 9,000 employees in Hong Kong. Parkinson opened the first Superstore in Hong Kong in 1996 in Hamper Garden Phase 12 with a floor space of 4,200 mm. The first Parkinson Megastars opened in 2002 in Metro City Tsetse Swan O with a floor space of 6,700 mm. Parkinson is a member of the A. S.

Watson Group, a wholly owned subsidiary of Hutchison Hamper Limited. For more income opportunities, Barbershop’s have create a higher-income stores are oiled as a “lifestyle” food stores and stock a large variety of imported goods, as well as fresh fruit and vegetables and many nonfood items. The market stores were launched in November 2004, when the existing 35,000-square-foot (3,300 mm) Parkinson store located at Festival Walk in Kowloon Tong was re-branded as TASTE. It is open daily from 7. AMA to midnight.

However, Parkinson have create they own brand to make a product-line the make more way to get income, both what it calls “private label” and “Best Buy” branding. As a supermarket that have they own mission that the mission, vision, and values tenement of each major retail grocery store and supermarket chain in the HIKE defines their brand, culture, and customer experience. Each mission, vision and values statement is as unique as the merchandise and shopping experience of each individual supermarket.

There is no doubtful that all of the business that the final mission is to get the higher profit for running a business, there the no except for Parkinson, beside the profit mission, Parkinson have their own market mission

1 . Offer hundreds of promotions with especially deep savings.

2. Moneybags loyalty aerogram provides members with tailor made offers.

3. Thousands of Own Labels give customers choice, value and quality.

Wide Product Choice

1 . Hold seasonal bazaars and country food festivals frequently to provide excitement.

2. Wide range of Asian and Western products sourced from around the world.

3. Wide choice of organic food.

Freshness & Safety

1 . Quality Assurance enforces the standards in freshness and food safety audits of stores, suppliers, and fresh food distribution centre.

2. “Vegetable Bar-code ID Card” and “Farm Check” Quality Control records enable us to trace the origin of vegetable to the exact farm it was grown. They also detail the full life history of the vegetable to give you the peace of mind.

Tailored Stores

More than 260 stores in Hong Kong and Macaw with different store formats to meet the needs of different customer segments. Parkinson believe that they can achieve their objective that is striving for the shareholders’ benefits as its primary goal by maximizing it growth and the share of the market, that need to implement proper corporate and business level strategy, and effective market strategy, to maintain own existing customer, to develop potential customers and to develop new marketplaces of grocery.

   This paper seeks to explain the details of a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Hewlett-Packard Company. Widely recognized as HP, it is one of the largest computer manufacturing companies in the world. Hp is an information technology company and it is known mostly for its printers and personal computers.

             SWOT Analysis, is a strategic planning tool used to evaluate the internal and external factors affecting the company in a bid to achieve its objectives (Turner 2002). In this case, strengths and weaknesses represent the internal environment for example policies, personnel, finance and so on. Opportunities and threats refer to the external factor or those factors that the company has no control over. For example socio-cultural factors and technological factors.

            Strengths: HP commands a large market all over the world. Hp gets number one rating worldwide in personal computers and printers according to market research firms Gartner and IDC reported in January 2008.[1] Besides this, there is high customer loyalty amongst users of Hp which shows Hp’s reputation in the market is quite good.  Modernized technology is also a major strength for Hp. The company recently introduced a service-oriented architecture (SOA) which allows the company’s products and consultants to work in both Java and .NET. This technology is unique to Hp compared to major computer companies like IBM and Microsoft.

            Weaknesses:  The pretexting scandal which was caused by a member of the board of the board leaking confidential details regarding HP’s long-term strategy in January, 2006 caused a stir in the management. Another company could have used the strategy at the loss of Hp. Laying off workers after the Compaq merger also took with it some of the skill the company had.

            Opportunities:  The level of technology in the world is going up by the day. In the electronic age, at least every home has a personal computer. As the population grows, the demand for computers grows. Another opportunity for Hp is liberalization of geographic markets. Third world countries are getting industrialized by the day. What this means is that since technology is one component of industrialization, liberalization spells out new markets for their products. There is also change in consumer tastes for example embracing digital technology.

            Threats:  One of the biggest threats to any company is competition. Hp faces competition from other major players in the technology field as well as new and upcoming companies. Major companies competing with Hp for market domination include Dell, IBM and Apple. Another challenge that has faced Hp is the circulation of counterfeits which have gone far in destroying customer loyalty. Recently Hp has noted increased number of refilled or remanufactured cartridges that are presented as original Hp but are sub-standard.  As the world embraces technology there need for constant innovations in technology to maintain markets. Like every other industry, Hp faces the government policies challenges. Hp has to put up with new laws, tax changes among other government policies.

            Primary activities of hp include manufacture and supply of computers and related accessories. These include laptops, pc’s, printers, Ink, toner, paper, monitors, and scanners among others. Hp offers its services to small and medium businesses, homes, and government, health and education facilities. Among it support activities are Business support, consumer support, Hp instant support and driver and support alerts. Stakeholders can obtain help any time from the company’s website and the Hp customer care centers at any given time.

Bibliography

Turner, S. Tools for Success: A Manager’s Guide. London: McGraw-Hill, 2002

Gartner, http:/www.gartner.com/it/page.jsp, 2008

Hp, http:/www.hp.com

[1]           http:/www.gartner.com

Company History

General Motors is a US based auto manufacturer  with a worldwide present and broad product range that includes the following global brands; Buick, Cadillac, Chevrolet, GMC, Holden, Hummer, Opel, Pontiac, Saturn, Saab and Vauxhall. Some of these models include passenger vehicles and trucks.

The company was founded in Flint, Michigan in 1908 as a holding company for Buick then controlled by William C. Durant. GM acquired Rapid Motor Vehicle Company of Pontiac, a trend that continued as the company acquired other companies to become one of the most complex global organizations. The leadership of Alfred Sloan in the 1920s greatly expanded the company as he focused on news ways of managing the increasing complex company with special attention of consumer needs to luxury cars which clearly differentiated the company from Ford Motor Company.

General Motors continued its growth and at one time became the largest corporation in the United States in terms of revenue as a percent of GDP. In 1955, it became the first company to make over one billion dollars in a year with the company also being the largest employer of labor. So great was the company’s influence that in 1953, then GM president was named by President Eisenhower as Secretary of Defense.

Operations/Internal Chain: The Company employs 324,000 people globally with half of them based in the US. It has manufacturing operations in 32 countries with a global distribution that ps across 200 countries with the company having a market share of about 30% in the US. Apart from manufacturing, the company utilizes its distribution network to market other brands like GM Daewoo, Isuzu, and Suzuki. The company also reinvented itself by operating one of the world’s leading financial services companies which offers automotive and commercial financing along with an array of mortgage and insurance products. This is extending the company’s value chain and making it more effective globally in the absorption of its cars.

SWOT ANAYSIS

Strengths: GM has been the one of the largest auto manufacturers with several years of experience and human resource and capital. The company’s brands have become known for their quality and attraction to people who desire luxury and quality. The company’s models are becoming globally accepted resulting in increased sales in foreign markets.

Weaknesses: The concept of Lean Production made popular by Toyota and which is globally acceptable as the standard in manufacturing is still a concept GM is struggling with. The company’s broad product ranges also appear difficult to sustain as some of the brands are known to be unprofitable. It is obvious that this presents a difficulty in logistics and the number of parts and production lines are difficult to effectively coordinate. The company’s market share is also being eroded by other companies and economic factors with the company’s stock value going down.

Opportunities: Its recent global partnership with Toyota and expansion presents opportunities for GM. The company has begun to focus on the brands that make it successful which will enhance profitability. The company’s strategy also seems to be paying off in the luxury sector as it is still the preferred brand.

Threats: This has been exposed more as a result of competition with Toyota recently laying hold to the claim of being the largest auto manufacturer in 2005 when it announced it would produce 9.06 million vehicles as against the 8.825 million cars proposed by GM. Apart from Toyota, the company faces stiff competition from other auto manufacturers. International legislation and regulation is also a critical factor that presents a threat as this can affect the company sales.

Global competition demands that the company re-evaluate its strategy, focus on its core brands and eliminate the sources of waste through standardization of most of its parts to ensure profitability. In recent years the company’s market share is gradually being eroded as a result of several factors which show that other companies particularly from Japan are taking more advantage of consumer demands. Customers are increasingly becoming the deciding factor and require responsive auto manufacturers to meet their demands. This is the challenge that GM must meet to restructure its operation.

References

• Charles H. Fine, Roger Vardan, Robert Pethick and Jamal El-Hout (2002). Rapid-Response Capability in Value-Chain Design. MIT SLOAN MANAGEMENT REVIEW  7 pages.
• http://imvp.mit.edu/papers/02/FineValueChain.pdf (assessed on March 26, 2006)
• William Berg (2005), The History of GM – General Motors http://www.freshstartdetail.com/The_History_of_GM_-_General_Motors.html (assessed on March 26, 2006)
• T. Thomas (2006), The Story of General Motors fall, http://www.rediff.com/money/2006/jan/27spec4.htm (assessed on March 27, 2006)
• Case Study – General Motors http://www.compucom.com/wwwimages/Corp/Images/CS_GeneralMotors.pdf (assessed March 26, 2006)

Wholesale Corporation is an international chain of membership-only warehouses. It began operations in 1983 in Seattle, Washington. Costco provides a limited selection of nationally branded and private-label products. Costco offers an attractive value proposition to its loyal clients which allow it to have strong membership renewals. Costco has operations in US, Canada, and 8 other countries. As of 9 February 2017, Costco had a total of 729 warehouses.

Costco Wholesale Corporation operates various membership warehouses in the country with an aim to offer low prices on the selective and specialty brands in the wide range of products. There are grocery items, clothing, fruit, electronics, health and beauty, furniture, optical, photo services, and more for consumers. Costco’s membership programs offer Business, Gold Star, and Executive levels.

The SWOT analysis examines the internal strategic factors (strengths and weaknesses) and the external strategic factors (opportunities and threats) relevant to the business. Costco’s SWOT analysis gives insights on the most significant issues that the company must include in its strategic formulation. Effectively addressing these issues in the SWOT analysis can support the continuation of Costco’s position in the global retail market.

Strengths

There are numerous remarkable features of Costco that make it unique and different from other retailers in the sector. One of the strengths of Costco is its pricing authority. The company mainly focuses on offering its customers quality products at the most competitive prices. The fact that it does not emphasize on maximizing profits in the short-term gives many customers the confidence of always obtaining high-quality products.

Among the most remarkable strengths of Costco is its Kirkland brand of the private level brands. Kirkland offers high-profit margins and accounts for 20% of Costco’s total sales. Moreover, compared to its closest rival Sam’s club, it attracts more affluent customers due to which the effect of economic slowdowns on the brand has remained minimal. With its huge market presence, Costco has been a success story and hardly needs to invest in advertising or marketing activities. Everything it does already creates enough media buzz – somewhat like Apple. Apart from everything Costco’s business model depends heavily on its supply chain which is not just efficient but is among one of the best. Costco also holds immense clout on its suppliers for the large purchases it makes from them.

Costco Wholesale also operates several consumer and business services, ranging from financial planning to health insurance. By providing top quality goods and services, Costco has been able to increase its market share a great deal over the past several years

In addition to everything abovementioned, Costco is the second largest global retailer as of January 2017 16th largest in Fortune 500.

Weaknesses

Costco’s high geographic concentration of stores is a major weakness. For example, 30% of its sales come from California region only. 10% of the brand’s sales come from gas. However, if the prices are already low, there are no incentives for the customers to shop at Costco for gas. Costco’s product mix is also limited as compared to its rivals and the profit margins too are lower. Moreover, a membership is required for shopping at Costco.

In comparison to other large retail stores in the US, a Costco warehouse stocks less number of products. On an average, Costco stocks about 4000 products in its warehouse, whereas Walmart stocks about 50000 products. The limited product offering acts as a competitive disadvantage for the company

Costco operates in a highly competitive industry. While its no-frills model has proven hugely successful in the past, competition is on the rise, both from online retailers like Amazon, as well as from other supermarket chains and discount operators. Competition from discount supermarket chains Aldi and Lidl in the US market may also prove a threat to Costco’s operating model. These operators have well-established private-label brands, and could pose further competitive threats to the success of Kirkland Signature, Costco’s own private-label brand.

Opportunities

Costco has stepped up its pace in opening new warehouses internationally due to inherent growth opportunities.  Costco can expand its market presence in the various regions of the world especially the developing markets of India, China and Japan. These markets show great potential for growth of the company. It can also start online business opportunities for its customers across the globe. The company is constantly working to make its distribution channels stronger and enter new potential markets. Costco has a sizable opportunity in transitioning from primarily a North America-based retailer to a truly global name.

Costco can concentrate on age group between 19 and 34 to expand their customer base and build on their new customers. Adding to its fresh and organic produce will be a key attractor for new customers. Plus, organics also represents a sizable opportunity for Costco, both for the top and bottom lines. Also, Costco’s e-commerce channel growth should also boost sales both from young generation as well as other demographic groups. The company needs to give attention to younger customers as they can help in doing long term sales with the company.

Threats

Costco is highly dependent on the financial performance of U.S. and Canadian operations, which comprised 87% and 84% of net sales and operating income in 2016, respectively. Within the U.S., Costco is highly dependent on California operations, which comprised 31% U.S. net sales in 2016.

The growth of Costco is dependent, in part, on the ability to acquire property and build or lease new warehouses and regional depots. Costco competes with other retailers and businesses for suitable locations. They also may have difficulties negotiating leases or purchase agreements on acceptable terms. Certain jurisdictions have enacted or proposed laws and regulations that would prevent or restrict the operation or expansion plans within their jurisdictions. Failure to effectively manage these factors may affect the ability to timely build or lease and operate new warehouses and depots, which could have a material diverse effect on the future growth and profitability.

Costco competes on a worldwide basis with global, national, and regional wholesalers and retailers, including supermarkets, supercenters, department and specialty stores, gasoline stations, internet retailers, and operators selling a single category or narrow range of merchandise. Competitors such as Wal-Mart, Target, Kroger, and Amazon.com are among the most significant general merchandise retail competitors. Costco also competes with warehouse club operations (primarily Wal-Mart’s Sam’s Club and BJ’s Wholesale Club), and nearly every major U.S. metropolitan area has multiple club operations.

Conclusion

Costco is the leading company in wholesale business and it is also expanding its working with low price to get the loyalty of the clients. The management is enhancing the business of the company in various other countries and can have a global appearance. The company has to take strict and right steps to promote their business and they should follow the rules and regulations to remain within the legal restrictions. Its ability to deliver quality products, at an affordable price, should appeal to most consumers in North America and around the world.

References

• Costco Annual Report 2016
• Sample Essay on SWOT Analysis of Costco
• SWOT Analysis: Costco Wholesale Corporation