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Environmental scanning: SWOT analysis- its identify the key internal and external factors
seen as important to achieving vision of Company. Below following is SWOT analysis for
GOLF ltd.
Strength-Easy customization of products- Company can customize its products according to
customer segment needs with some charge of R&D. Thus, company can achieve good market
share through proper customization of products which cater high market shares.
Easy understanding of positioning of product through perceptual map- using perceptual map,
company can get the overview of current positioning of product and required positioning for
target market segment. It helps company to forecast the feature, style and price.
Weakness- Highly competitive market- the large no. of competitor is present in the present
market which shows this industry is highly competitive.
High variation in customer needs- As industry is highly competitive; customer has lot of
option on hand in term of feature, style and price. Thus, it has lot of variation in demand
which is difficult to forecast.
Opportunity- Company has easy availability of finance- company has lot of option to get
require fund which shows unforeseen free operation due to financial crisis. It also has
emergency lone option which provides immediately fund on need.
Threat- high cost of capital for emergency finance- Company facing high rate of charge of
cost of capital (15% yearly) for emergency purpose which create difficult situation to be in
profit.
Where r u and where do u want to b?
Where we are- The Company is in an industry where there are five segments namely Hermits,
Pragmatists, Tech-geeks, Wanderers and Bluebloods. But, it has presence in three segments
out of five with some percentage of market shares.
Where we want be The company want to show presence in all of the above five market
segments with good percentage market share in each segments.
Identify the strategic gap and how do u want to fill the gap??As companys vision is to become
market leader by expanding market share and cater to all the market segments. Currently,
company has launched three different products in some of the available market segments. It is
way behind from its vision. Thus, company have to follow some strategy to fill-up expected
gap between expected to current market shares. Hence, it will follow following strategy:
market penetration and market development. Through market penetration strategy, company
will increase its existing market segments by gaining competitors market share or attracting
non-users of current existing product or convincing current customers to use of more
products.
Other strategy company will cater i.e. market development. In this strategy, company will
focus on launch of its existing product on new market segment which are untapped market. In
current scenario, two of market segment is still untapped by company. Thus, the company
will target it.