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Swot Analysis: SWOT Analysis Of Huqvarna Group

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SWOT Analysis Husqvarna For all kinds of decisions and situations firms consider SWOT analysis to be the most useful tool. SWOT is a contraction used for Strengths, Weaknesses, Opportunities, and Threats. This analytical tool is perfect when companies want to analyze, plan or evaluate a new proposal, its competitors or develop a new product. Through SWOT, analysis companies not only view options for their business positively and negatively but can also decide upon the way to convert their weaknesses into strengths. Husqvarna Group is a world leader in the production of the products to cater outdoor needs of parks, garden, and forests. Some of the products that the company is manufacturing include trimmers, chainsaws, automatic lawn mowers and…show more content…
Sweden, the United States, Japan, and China are where most R&D facilities are operated from. Each site has its own focus and expertise, serving a specific market. Market Segmentation Husqvarna Group views the end user as the first and most valuable part of strategy development (Strategy 2020). Husqvarna Group performs many customer interviews each year, surveying as much as 1,000 professional users and 5,000 consumers globally. Information from these interviews generates profiles on the needs and requirements of customer segments. Customer insights drive product development, helping Husqvarna Group to identify customers and better meet customer needs. This process helps to make Husqvarna Group competitive and help it strengthen its hold in the market. Technology and Innovation Husqvarna Group has been in operation for 325 years, and it claims that its key to longevity and success has been its ability to truly understand end-customer needs. Husqvarna Group highly values the end-customer and responds quickly to his or her needs with innovative products and solutions. The highlights of its strategy is the importance of leveraging customer insights for developing products that further drive differentiation among the Husqvarna Group customer segments, brands, and…show more content…
Roughly 42% of a sale price covers the cost of materials to make the product. These materials include either direct materials or materials or parts that are sourced from other providers, including engines. Engines are the most expensive and largest cost of materials for the Group. For example, for some basic law mowers, the engine can account for as much as 50% of the total product cost. Shared efforts by R&D and purchasing are focused on reducing costs in this area by 10% by 2016. Husqvarna will offer suppliers a three-year contract as opposed to a one-year contract, which they used previously, in order to reduce engine
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