The Strengths could be to lead the market of toys while weakness might be the lack of a new product while Opportunities could be the launch of new project and Threats could be force of competitors. The aim of SWOT analysis for the company is have an eye on overall business environment in order to use new opportunities faster than competitors. So following figure represents SWOT analysis for Lego: Figure 13: SWOT Analysis To conclude SWOT analysis: Strengths: Through the years Lego has reached international prestige, does a vital green policy and being family owned company is their one of the strength that my lead to good shape for future. Weaknesses: To overcome weaknesses Lego should develop media products. Moreover produce goods for girls and inspire them to play and buy Lego toys and change centralized strategy to decentralize.
Brand loyalty is hard to come and consumer will always buy the next thing. In this report, marketing of company Apple had maintained a strong sale and uses a differentiation business strategy in creation of their products. Although Apple has problem too. Technology is a very competition weapon in this competition market. Apple also must do more R&D to make products better than another competitor, example Samsung, acer, Sony, and HTC.
There is no point in developing a product or service that no one wants to buy, yet many businesses decide what to offer first and then hope to find a market afterwards. In contrast a successful company will find out what customers needs and wants and then develop a right product. Before the launch of our eco car, the company must understand the requirements’ of the customer from the hybrid vehicle manufacturers and their design. Compared to Competitors, is our product superior in significant way to anything else available in the market? If so, specify the uniqueness, if not, we should develop an area of superiority?
The well-known products and the good relationship with the suppliers become their strong force to compete with other companies. Customers are willing to shop with ALDI instead of other normal supermarkets. Depending on the reasonable price of the product and the guarantee, ALDI has already gotten the trust of their customers. Even if there is another company competing with ALDI, the new entrants will not get benefits compared with ALDI.Rivalry: Rivalry is the fifth force in Porter’s Five Forces model. ALDI has some companies that it competes with in its industry, such as Walmart.
These tools are so powerful that it even created a legion of loyal fans for "Lego only" products; these fans would never consider mixing their LEGO bricks with Lego substitutes (Community Team Blog). This allows Lego to charge a premium price resulting in a differentiation advantage. Despite being threatened by 3D printing and a shrinking customer base, Lego 's core competencies have shown to withstand the test of time as competitors are unable to replicate them due to its complexity; Lego 's profits continued to grow despite the flood of substitute products by competitors over the years
Moreover, name itself suggest, they specialise in toys for children. The term product as stated by Ib book as “includes consumer and industrial goods and services”. This means product is all that offered by the market to satisfy the needs and wants of consumer. Toy R us sells high quality products which makes toyrus uniquely different from the completion. Toyrus normally lower the cost of the product than the others and promotes an importance to their customer.
This new chip can decreased the sales revenue in a short term because it seems to be unnecessary for customers who already owned the computer with this effective chip. However, if the company not promote this chip, sales revenues will remain stable, unsurprisingly. Therefore, if we apply the utilitarianism to this case, it is certain that the happiness of customer is the highest priority. In other words, the manager should select the choice that will ensure the happiness of most customers (Chryssides and Kaler, 1993). For this reason, there is another involving factors that need to be considered: how happiness can be
Successful business, as it is mentioned in the case study (Growing a Business byInternational Acquisition), Know when and how to adapt and change which involves growing some areas and cutting back less profitable areas. Companies may often grow by benefiting from acquiring businesses or outsourcing operations in overseas markets because of the availability of customers and low wages of the production cost. Business growth or expansion has potential benefit and drawbacks, thus some business owners are unwilling and hesitant to run the risks and face the challenges of growing their businesses so they choose to leave them at the level of sole proprietorship. However, Growing businesses have two main advantages over its smaller competitors: • They
They can dictate how prices fluctuate. According to strategiccfo.com, “Porter’s Five Forces of buyer bargaining power refers to the pressure consumers can exert on businesses to get them to provide higher quality products, better customer service, and lower prices (2013).” Buyer Power influences the new entrepreneur venture because new entrepreneurs have to take this into consideration when promoting their business forward since technically, the buyers is what drives the company towards profit. An entrepreneur should look at this like competitive rivalry because if the certain product or service has a lot of buyers then the buyer power is weak and a company will succeed by not taking terms and pricing changes from the customers/clients. On the other hand if the business has very little buyers then the customers have all the power since the business will try to do anything in order to keep the little customers they
Efficaciously, this tool is utilized by organizations to assess the strength of the competitive forces in their respective industry (Rice, 2010). Fundamentally, the five competitive forces that affect industries are the competitive pressures originating from the buyer bargaining power. Next, are the competitive pressures industries endure that are coming from companies in other industries to win buyers over to a substitute product. Then, there are competitive pressures originating from the supplier bargaining power. Forth, are the competitive pressures connected with the threat of new competitors into the market.