Investigate a company and assess their position in regards to their stategy. Here's how;
- Select an organization.
- Google search for two or three recent articles that discusses what the company is doing or planning to do.
- Write a brief summary about what the company is doing that illstrates their strategy (ie making new technology, moving overseas, buying a competitor). Using our class note, what kind of strategy is it
- Based on the articles' information, perform a mini SWOT. Try and have something for each heading.
- Paste your article links to your posting.
1. UNICEF
ReplyDelete2. http://www.unicef.org/infobycountry/malaysia_60514.html http://www.unicef.org/infobycountry/drcongo_60501.html http://www.unicef.org/infobycountry/haiti_60240.html
3. By reading the four articles I listed above, it is very clear what UNICEF has been up to. Their main goal as of right now, is establishing many partnership deals. They have partnered with many organizations including Ikea, Pampers, and even the Malaysian Government. They have partnered with Pampers to protect mothers against neonatal tetanus (when a baby is born in unsanitary coniditions). They have also partnered with Ikea to deliver toys to Haitian children. Ikea, the international Swedish furnishings company donated the toys, valued at about $140,000. Unicef added hygiene kits to the delivery to encourage recipients to wash their hands. The toys offer important opportunities for play and creative expression, and the hygiene kits will help protect them from cholera and other dangerous diseases. Lastly, they have even partnerd with the Malaysian Government to address child poverty in Malaysia. Child poverty is complex, but the goal in addressing it is clear. This partnership is ensuring all children, including those living in poverty circumstances, to develop their full potential and chart their own futures.
4.
S - partnering with different organizations increases the ability to raise funds because both organizations may be able to contribute more funds. There is a wider pool of knowledge, skills, and contacts. More creative brainstorming and moral support.
W - They are both individually liable for the actions of their partners. Unicef's profits must be shared. Most importantly what we learned in class, UNLIMITED LIABILITY.
O - Unicef is a very well-known organization and there is not many partnership competition that is headed there way. They have picked very successful organizations to partner with, like Ikea, not just random organizations but successful ones that will help gain growth.
T - Unicef is a United Nations organization, which means it ends up being a front for many of the UN efforts which may or may not be compatible with the interests of countries around the world.
Gilead Sciences Inc has succeeded in a bid to buy Pharmasset Inc for about $11 billion based on the promise of its experimental hepatitis C medicines. They hope to add this to a portfolio of drug developments for the Gilead Corporation which includes being the largest supplier of HIV drugs.
ReplyDeleteGilead will pay $137 per share for each Pharmasset share, a 89 percent premium to Pharmasset's Friday closing price.
The shares of Pharmasset have increased in the past year as the revealed oral drugs to create a treatment without interferons, which cause flu-like side effects that lead many patients with the serious liver disease to stop or delay treatment.
Pharmasset has three hepatitis C medicines in clinical trials. Its lead candidate, PSI-7977, recently been advanced into two Phase III studies
Gilead has stated that the deal is expected to close in the first quarter of next year, projecting it would hurt the company’s earnings through 2014 due to cost. Company spokesman say Gildead has commitments from Bank of America Merrill Lynch and Barclays Capital for financing of the transaction.
Barclays and Bank of America advised Gilead on the deal, while Morgan Stanley advised Pharmasset. Skadden, Arps, Slate, Meagher & Flom LLP is Gilead's legal counsel, while Sullivan & Cromwell LLP is serving as legal counsel to Pharmasset.
This expansion seems like horizontal integration but is in fact conglomerate as they are buying a company that is not in the same market (Different disease treatment). The two companies did not share or compete for customers, as both were in different subsidiaries of the medical industry. Gilead is diversifying their portfolio of medical treatment. Their next step for growth will likely be Product Development of the Hepatitis drug and continued development of their HIV symptom treatments.
S: Large amounts of funds to purchase new companies
Most advanced technology and research in many diseases
W: Have only cornered HIV market
O: Expansion into other industries such as Hepatitis
Large sway with doctors, hospitals and congress to push their own drugs
HIV epidemic growing
T: Curing a disease would cut profit
Competitor curing disease would kill company if it only has stake in HIV treatment
The organization I selected was the USA. Currently, they are trying to find 1.2 trillion dollars in spending cuts for the next 10 years. The deadline is currently today. (November 21st). The USA has planned to cut the spending by putting together a committee of congressmen to find 1.2 trillion in spending cuts including 600 billion from the pentagon. If the deadline is not reached, 1.2 trillion will be cut from defense and other US services including social services like medicare.
ReplyDeleteSWOT
Strengths:
- The largest economy in the world
- They can find cuts in things like defense now that the troops in Iraq are coming back.
Weaknesses:
- 15 trillion in national debt at the current date.
- Very short amount of time to figure it out.
Opportunities:
- The war in Iraq is ending and there can be cuts there.
Threats:
- Nuclear threats from Iran are causing problems and might create a war which is very costly.
McDonald's wants to increase their growth dramatically over the next few years. They have had plans for the past nine years to "win big". This means they want to gain more of the market share by adding items to the menu that offer something for everyone. McDonald's hope to increase both their revenue and market share. They are doing this by changing the fast food place to more of a welcoming place. They are planning to do this by renovations of all the Mcdonald's and innovating the menu's. This is an example of a few strategies. The first one is Market Development. It is an example of this because they want to bring in new customers so that their market gets bigger. Another strategy is Product Development. McDonald's is adding new products to their menu and changing old items to healthier ones in hopes that people will change their eating habits to healthier ways.
ReplyDeleteS- Already are a dominant in the market. This means that they already have 42% of the market. They are well known across the world and have a very good reputation. Adding new items and bringing in new customers could potentially increase there market share by a large number.
W- McDonald's has to make sure that they are doing something different then competitors. This way consumers will choose them over another company that offers similar products.
O-McDonald's is always able to expand and do new things. For example, the look of their new restaurants and their new menus. Opportunities such as having market dominance is a huge thing. This gives them the opportunity to set the prices for themselves and competitors.
T- Competitors and McDonald's are always neck and neck. They are creating the same products that are offered around the same price. If a competitor offers a product cheaper than McDonald's, consumers would choose that one over McDonald's due to the fact that it is cheaper. Competitors are always a threat for McDonalds.
http://www.thesun.co.uk/sol/homepage/news/73560/McDonalds-planning-Big-Mecca.html
http://www.marketwatch.com/story/mcdonalds-positioned-for-continued-growth-under-the-plan-to-win-2011-11-10
SONY
ReplyDeleteSony, one of the world's technological giants for many years has used a PRODUCT DEVELOPMENT growth strategy hoping that the release of new products will boost them back up to the top. Sir Howard Stringer, CEO of Sony, planned for a $2 billion profit this year. The company had a fresh batch of products hitting the shelves, including its first tablets, a compact 24-megapixel camera, and a portable PlayStation player. Sony was also preparing to launch a global network that would connect the company’s movies, music, and video games to all its televisions, tablets, computers, and phones. This network had been compared to iTunes (the network one of its biggest competitors Apple has available to consumers).
SWOT Analysis
Strengths
- Large Company (financially)
- Good Reputation --> Already established themselves as a company producing reliable/reasonably priced products
- Have money for technological development at all times
- Have a decent percentage of market share
Weaknesses
- Products were set to release fairly close together (planning the timeline for product release dates was not very good)
- Many of their most successful production plants are located in foreign countries
- Economy struggling in some of the most wealthy countries of the world (U.S, Canada, etc.)
Opportunites
- New markets are developing (eg. online movies)
- Their planned growth strategy (releasing a fresh batch of products)
- Any new technological developments
Threats
- Changing market preferences (making sure their new developments are satisfying the demand of consumers)
- Natural disasters occuring in Japan (forced Sony to temporarily shut down 10 plants, disrupting the flow of Blu-ray discs, batteries, and other items --> led to the $2 billion in operating profit Stringer looked forward to announcing, turning into a net loss of $3.1 billion)
LINKS
http://www.businessweek.com/magazine/what-is-sony-now-11172011.html
http://mediadecoder.blogs.nytimes.com/2011/06/15/sony-makes-music-service-available-on-android/?ref=sonycorporation
The organization I chose is Autodesk. Autodesk is a software giant creating architectural software and graphics design software. Their strategy is to make their software more user friendly, easier to resell, and to buy out the competition.The type of strategy they are following would be Market Development, Product Development, and Horizontal Integration. Autodesk has bought out one of their architectural competitors-Revit- who makes 3D software. They thought this would be a threat to their current stronghold on that market. After acquiring them, they innovated on their 3D software, and released it, creating a new market for them, the 3D architectural software. Autodesk also releases new software every year, innovating on their older versions. Autodesk is making their software more user friendly by innovating and making the programs easier to use. They are also making it easier for resellers to sell their products. Before, the reseller had to sell multiple authorizations so the customer could use the product, now the customer only needs one authorization.
ReplyDeleteStrengths- Large company that can easily take out competition if they become a threat. Listen to customers and make innovations to make it easier for everyone to use
Weaknesses- Keep buying out their competition, bringing them closer to a monopoly. When they get to a monopoly, they will have to get rid of part of their company, not good.
Opportunities- when buying out companies, they may alos acquire the employees of those companies, bringing fresh ideas and a new perspective on the markets.
Threats- Any new type of innovation in the software industry, as Autodesk likes to stick with what they know, rather than stepping away and taking risks.
http://www.caddigest.com/subjects/autocad/select/adesk_revit/adesk_revit.htm
http://www.itbusiness.ca/it/client/en/home/News.asp?id=56961
Strategy
ReplyDeleteLast Wednesday, Google added a music store to its existing online services in the United States. Like iTunes, Google plans to sell digital media (music, movies, etc.) from its website. It will be integrated with its Android market (which is the marketplace for Android-powered smartphones, laptops, tablets, and other electronic devices). This is an example of a growth strategy because Google is working to increase its revenue. One growth strategy it is using is e-business. Google is now selling something directly to consumers, as opposed to business-to-business (ex. AdWords) from an online store. In addition, Google is growing via market development. It is expanding by adding new consumers to its existing market. Google is giving consumers using Android-powered electronics an easy-to-use, integrated way to buy music online. Before this, these consumers would have to get their music elsewhere (either illegally or from another music store). Now, however, they are, in a way, forced to get their music from Google Music. A third growth strategy that Google is using is product development. The software used to power Google Music is new technology, which Google is using to generate revenue.
SWOT Analysis
Strengths
- Integrates well with existing userbase (Google and Android users)
- Google already has a good reputation online
- Offers free cloud storage
Weaknesses
- Not as many songs as competitors (due to its opening recently)
- No deal with Warner Music Group
Opportunities
- Upcoming holiday season
- Growth Strategy (to operate internationally)
- Many new Android-powered device are being made
Threats
- Competitors (ex. iTunes)
- Illegal downloading trend
Sources
http://news.cnet.com/8301-1001_3-57327359-92/google-gets-in-the-music-groove/
http://www.businessweek.com/news/2011-11-18/google-unveils-music-service-challenging-dominance-of-itunes.html
http://www.newsday.com/business/google-opens-music-store-to-us-challenge-to-apple-1.3326960
Analyzing Strategic Planning: Starbucks
ReplyDeleteBusiness Week: Article 1
http://www.businessweek.com/news/2011-11-11/starbucks-buys-juicemaker-with-plans-to-open-retail-stores.html
Today: Article 2
http://www.todayonline.com/Business/EDC111111-0000146/Starbucks-acquires-juice-business-for-S$38,7-million
CNN: Article 3 http://money.cnn.com/2011/11/10/news/companies/starbucks_juice_evolution_fresh/index.htm
Starbucks, the world’s largest coffee-shop operator, bought a juice company called Evolution Fresh Inc, in hopes of opening juice retail stores. The stores will sell food and other beverages and is anticipated to open in the middle of 2012.
Strength
-Good reputation, play on Starbucks’ branding success for the new retail store
-Evolution Fresh provides better quality juices than competitors such as Odwalla or Naked Juice (uses high-pressure pasteurisation to make the juice without heating)
Weakness
-Known for their Coffee’s and lattés and quick snacks, this opposes the health and wellness image
Opportunity
-Higher consumer demands for healthier products
Threat
-Lack of knowledge on products could turn customers to well known competitors such as Jamba Juice
-Opening a new chain during the low economic times can have a slow progress
Growth Strategy
Market Development
Adding new consumers to a current market. Starbucks hopes to attract new customers and provide new options for existing customers. By adding smoothies, it will attract consumers who demand healthy products
Horizontal Integration
-Expanding company by buying (a distribution chain, Evolution Fresh)
Strategic Alliance
-Starbucks partnering with Green Mountain Coffee Roasters Inc., a publicly- traded brand of coffee. Specializes in organic, fair trade, and gourmet coffees.
- Grocery and mass retail stores began selling Starbucks brand K-Cups earlier this month.
http://www.nytimes.com/2011/11/21/technology/google-enters-microsoft-offices-turf-with-mixed-results.html?pagewanted=2&_r=1
ReplyDeletehttp://www.reuters.com/article/2011/10/28/us-google-tv-idUSTRE79R3V620111028
Based on the articles I have read, Google is currently expanding their market tremendously and improving their products. Here are just some of the current projects Google is working on. Google has installed their own custom apps for businesses that provide documents, spreadsheets, word processing, and other software that is very similar the ones used in Microsoft Office, but Google is offering this software for $50 per person for 1 year which is 50%-80% cheaper than what Microsoft charges for their software. Google is also improving their TV service by providing new tools for recommending what the viewers might like to watch, online videos, changing the price for the Google TV device from $299 to $100 and other things to make it that much better. Also, Google plans to buy Motorola Mobility Holdings Inc, which creates the cable television boxes as well as mobile phones. I believe that the strategies they are using are Growth Strategies; more specifically - Market and Product Development.
SWOT
S – They have a very good financing which allows them to produce and innovate so many products
W – Some of their newer products may not be making as much profit and popularity as its competitors
O – Their vast market (they make products for so many markets like social network, apps, search engine, TV, and many more) is becoming a threat for many other companies within the market they are selling to
T – Since they are always working in different markets, they can’t focus on one single market and make whatever product they are selling in that one the best it can be and they may not be able to be the #1 organization in that market because they haven’t focused on it enough to make it the best
H&M (Hennes & Mauritz AB): Retail
ReplyDeleteStrategic Alliances;
H&M has been teaming up with successful, competitive, well-known luxury brands and creating "limited edition" lines that are featured for affordable prices. This gives H&M an exclusive feel for curious customers and it also gives them "fashion authority" by collaborating with such big names like: Chanel and most recently Versace designers. This gives the companies and designers that H&M are collaborating with "free advertising" by showcasing more affordable yet still high quality products, making customers think about their luxury and high-priced lines.This expands their potential customer base by allowing them to have a feel for what they have to offer.
SWOT Analysis
Strengths
-"free advertising" for designers and companies collaborating with h&m
-curious customers are satisfied with many different styles and designers
-expands customer base
Weaknesses
-sales of each designer are most popular where they're recognized (Lagerfeld in Germany, Stella McCartney in England and Sonya Rykiel in France)
-partnerships may collapse
Opportunities
-other well-known designers may want to collaborate with H&M, seeing how well they're doing with collaborations
Threats
-other popular retail stores may choose to start doing the same thing by collaborating with designers (Target - Missoni, earlier this year)
http://www.businessweek.com/news/2011-11-16/h-m-would-be-keen-on-tom-ford-collaboration-after-versace.html#0_undefined,0_
http://www.businessweek.com/news/2011-11-15/h-m-sets-versace-goddesses-of-high-fashion-to-low-prices-retail.html#0_undefined,0_
The company that I choose is Ikea. They are planning on going completely "green". For one thing, they are beginning to install electric vehicle charging stations outside of their stores. They have partnered with ECOtality, who is a green electric transportation and storage technology expert. In order to charge your vehicle you must purchase a Blink Incard which must be presented when the vehicle needs to be charged. In addition, Ikea is installing solar panels which will attract a larger consumer base and save capital in the long run.
ReplyDeleteStrenghts
-Long term partnerships with suppliers, therefore they are able to negotiate the price
-strong global brand that attracts key customers
Weaknesses
-global company, therefore standars are hard to maintain
Opportunities
-Ikea can further capitalize on the "green" movement and IKEA's customer desire to have less of an impact on the environment
Threats
-competitors-direct (furniture stores), indirect (Wal-Mart, Target)
-rising shipping prices
Websites
http://www.azocleantech.com/news.aspx?newsID=15812
http://www.cleanenergyauthority.com/solar-energy-news/majority-of-ikea-stores-in-u-s-installing-solar-111811/
Sony
ReplyDeleteSir Howard Stringer, the chairman, president, and chief executive officer of Sony he has been trying to return the Japanese icon to its former ways where it has been known for their technological products. As a company they have been using the product development strategy for many years where it usually brings growth to Sony. Sony is expected to release new products to increase sales and potentially put them back at number one company to make technological products. Their new products to be released were Sony’s first tablets, a compact 24-megapixel camera, and a portable PlayStation player where Sony is also preparing to launch a global network that would connect the company’s movies, music, and video games to all its televisions, tablets, PCs, and phones. The global network can provide Sony success but as it is compared to iTunes it can cause a negative impact as it is such a huge competition.
SWOT
Strength:
- Good reputation, Sony is known for their products, prices and services
- Large company, Sony is financially stable where product development can be made
- Costs cheaper, most of Sony’s successful manufacturing plants are in foreign countries
Weakness:
- Sony plans to release their new products around the same time; consumers may be overwhelmed and may only look forward to one product
- Sony’s largest consumer’s are in North America where the economy is struggling
Opportunities:
- Sony’s growth strategy plan
- New product development
- Internet age
- Global network (competition: iTunes)
Threats:
- Natural disasters in Japan (the earthquake and tsunami forced Sony to temporarily shut 10 plants down which disturbed the production of Blu-ray discs, batteries and other products)
- Releases new products around the same time
http://www.businessweek.com/magazine/what-is-sony-now-11172011.html?campaign_id=rss_topStories
1 Company researched on:Valeant pharmaceuticals inc.
ReplyDelete2Articles
Valeant Pharmaceuticals Agrees to Acquire iNova Valeant says to buy
Australia's iNova for $623 mln.
3. Growth strategies
Horizontal integration :(valeant buying inova)
Market development: (valeant is working towards getting consumers in Asia,Africa,Australia)
Product Development:(improving the outlook of the product and making it more easily accessible)
SWOT analysis
Strength :Good Financing
Excellent planning and Management
Availability of cash reserves.
Opportunities: New market
Growth Strategy
New Technology
Threats : Substitute Products
Instability of the Economy
Availability of rivals and new competitors.
Sony is making a lot of new products, they plan to at some point connect media across all of their various platforms, to try to change their deficit into a surplus unfortunately they are still not yet profitable. Sony is also trying to streamline the company creating marketing, software, and other platforms common to all the businesses, Sony is a large company and their sectors were previously quite autonomous.
ReplyDeleteStrengths
· Established company with a well respected name.
· Diverse set of over 2000 products
· New tablet is set to challenge ipad
Weaknesses
· Competition is driving prices lower.
· Continually losing money on some products.
· Fell behind competitors technology
Opportunities
· Insurance is Sony’s biggest money maker and is still growing
· Christmas season is coming up
Threats
· Earthquake and tsunami in Japan which is where Sony is located.
· Hacking forced the close of the PlayStation network
· Strong yen lowered profits
· Warehouse burned in London riots
· Flooding in Thailand shut some component plants
http://www.businessweek.com/magazine/what-is-sony-now-11172011_page_5.html
http://www.nydailynews.com/news/money/sony-tablet-s-ready-ipad-article-1.980627?pgno=2
Sony is making a lot of new products, they plan to at some point connect media across all of their various platforms, to try to change their deficit into a surplus unfortunately they are still not yet profitable. Sony is also trying to streamline the company creating marketing, software, and other platforms common to all the businesses, Sony is a large company and their sectors were previously quite autonomous.
ReplyDeleteStrengths
· Established company with a well respected name.
· Diverse set of over 2000 products
· New tablet is set to challenge ipad
Weaknesses
· Competition is driving prices lower.
· Continually losing money on some products.
· Fell behind competitors technology
Opportunities
· Insurance is Sony’s biggest money maker and is still growing
· Christmas season is coming up
Threats
· Earthquake and tsunami in Japan which is where Sony is located.
· Hacking forced the close of the PlayStation network
· Strong yen lowered profits
· Warehouse burned in London riots
· Flooding in Thailand shut some component plants
http://www.businessweek.com/magazine/what-is-sony-now-11172011_page_5.html
http://www.nydailynews.com/news/money/sony-tablet-s-ready-ipad-article-1.980627?pgno=2
THI - I agree with you because I also believe Sony is a large growing company using the Product Development Strategy we learned about in class. I agree with this because Sony is expected to release new products to increase sales and potentially put them back at number one company to make technological products, which deals with Product Development Strategy. I disagree with the threat that Sony is releasing all their products at once. I believe that if Sony releases products at the same time, it will be cheaper advertising and they will save a lot of money which can be used later on for the company's growth and products. An interesting point is where you talked about the earthquake and tsunami in Japan and how it forced Sony to shut down 10 plants which affected the production of Blu-ray discs, batteries and other products.
ReplyDeleteBrendan Rockel:
ReplyDeleteI agree that Google is mkaing a good move in making their own music service. Not only wil this take away from Apple, but will add to their revenue stream. What I disagree with is that illegal downloading is going to be a big threat. New laws are being passed in multiple countries making it harder to download music illegally, and making the penalties harsher for people who do so. This makes the incenticve to buy the music much larger, meaning more revenue will pour into this industry. I think that Google timed it perfectly with the upcoming holiday, and the fact that their Android market is expanding.
Joshua Janzen (Autodesk) -
ReplyDeleteI agree with Market Development, Product Development, and Horizontal Integration as the strategies Autodesk are using and I agree with the SWOT you used; they can easily take out competition if they become a threat and that it’s not a good idea to keep buying out their competition.
An interesting point I found is that Autodesk likes to stick with what they know instead of trying out new software and taking risks with it.
To: Brendan Connolly
ReplyDeleteGreat analysis. I'm particularly interested in Sony's global network development and wondering if it will someday replace ITunes. It will be interesting to see whether the product is going to be an ITunes spinoff or something completely different that may kill off ITunes.
Dragan:
ReplyDeleteI thought it would be interesting to reply to your comment seeing as the company I chose to comment on was also Google.
I agree with your classifying Google's growth strategy as product and market development. Google is creating new products (product development) with its production of its new software suite and internet-streaming product. Google is also exploring new markets by selling directly to consumers as opposed to other businesses.
However, I disagree with what you put as a threat. By definition, a threat is an "...external circumstance [that is] destructive to achieving [a business's] goals." (http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-analysis-strengths-weaknesses-opportunities-threats_2.html). Google's not being able to focus itself is internal, not external. This is because it has full control over what is does (or does not) focus on. Therefore, it is a weakness.
ADIDAS
ReplyDeleteAdidas has invested in a long-term plan as of march that might not change a lot right at the start, but over time will be used for marketing-strategic advantage in the future. This plan consists of growing their cotton according to the standards of Better Cotton Initiative. Better Cotton Initiative exists to make global cotton production better for people who produce it and where it’s produced. Adidas is trying to work with farmers around the world to reduce the use of pesticides and water consumption. By 2015, Adidas is said to be using 40% Better Cotton, by 2018 it commits to 100%. In another article, Adidas is trying to expand into the snowboarding market. They are teaming up with a pro snowboarder, Jake Blauvelt, to create a new boot that is fairly stiff but is still comfortable and can last through the winter. They’re expansion is because of they’re product development, they have modified there clothing to new materials which they believe will do better in the long run. Also, they have not invented a new product, but created their own to try and expand into a new market. Both market development and product development will most likely be beneficial to them in time. They have already made plans for the future which is to expand into surfing in 2014.
S- Well trusted brand, great quality products, famous three stripes both popular/stylish, and expanding products will attract consumers, snowboarders will want to try new line
W- Have never made snowboard boots, going into market that is unknown to them
O- Professional snowboarder wants to help expand, finding new markets,
T- Much more trusted snow gear that already exists, snowboarding might not be as popular in the years to come
With Nikes market dominance they have an advantage over the competitors. Nike is planning to take their business to China, Brazil India, and their burgeoning middle classes. By selling their new soccer brand to Europe they plan to take market share from Adidas. They plan to increase sales to 40% in 2015 to 27 billion dollars. Since they have the money to sell their stock over seas this gives them an advantage because other company's can’t do this.
ReplyDeleteNike is has many strategy's and that could be why they are so successful with their company. First they are selling their stock overseas to other China, Brazil India, and their burgeoning middle classes. By doing this they will increase sales and stock. Also Nike bought out their "soccer" competitor Umbro for 582 million dollars. Nike doesn't have to worry about competing against them anymore and now have a great chance to dominate in the soccer market. They can work this to their advantage to beat their competitors this is called Horizontal Integration. The retrenchment strategy works to their advantage because they save a lot of money by paying kids little amount of money.
S- Nike knows how to compete in a healthy way against their competitor’s example, Adidas. They have a good reputation by selling good quality products that customers pay for. This is a global brand that doesn’t have money issues, they can set the prices at they want and competitors have to follow with that.
W- Nike has a bad reputation by having sweatshops and this is why many people don’t purchase Nike products. The sports industry is a big market and Nike has to face many competitors.
O- With Euro Cup coming out next year and Nike has the biggest soccer label. This could be positive news to their sales and market share and bad news to their competitors.
T- Many competitors compete with Nikes price tag. With the economy going down people aren’t looking for the most expensive pair of shoe.
- Buys and sells in different currencies and so costs and margins are not stable over long periods of time.
BrendanR- A growth strategy is not an opportunity as it is internal and opportunities are external. While the chance to operate internationally is an opportunity, the growth strategy to expand internationally is just a strategy.
ReplyDeleteCommenting on Vladimir's post:
ReplyDeleteExplained IKEA's new plan very well. I like how IKEA is planning to go green, this is something the world needs and consumers are starting to realize the companies that are making an effort to help as well. IKEA has already contributed with eco-friendly packaging as well as recycled wood in some of their products. Now they are introducing electric vehicle charging stations outside of their stores (parking lot). I agree with the effort IKEA is making to "help the earth" and you did a great job describing everything you need to take advantage of their new technology. The only negative thing about what they are planning for the near future is the fact that the majority of car owners still own gas-only operated vehicles. The hybrid and full-electric cars are up-and-coming but still the way of the future.
Commenting to Anjatakac:
ReplyDeleteI agree with H&M’s collaboration with different brand name designers to provide consumers with affordable yet high quality prices. The free advertising and exposure of designers to the public will draw more people to their name, which will expand their market. Not only are the designers being recognized by the small majority who pay the full price, but by average paying consumers who make up the larger majority of the market. On the other hand, the partnership could be vulnerable seeing as designers have very different styles and looks they want to advertise. Having too much variety being sold in the same store could be overwhelming, and the store could loose their overall image. (too many styles clashing together)
Brief Summary
ReplyDeletePetsmart is attracting more customers than most other pet stores nowadays and they are doing so not by adding more variety to their supplies or lowering prices more, but by instead adding activities for both their customers and animal lovers in general to participate in. While these activities are usually meant to help raise money for causes like animal cruelty, the company also knows that this is an excellent way to strengthen relationships with their customers and also attract new ones. These activities include teaming up with the SPCA for adopt-a-pet weekend to help find abandoned animals new homes and contests like best most talented dog or best aquarium set-up.
Strengths
- Strengthens the bonds between the company and it's customers.
- Attracts new customers.
- Separates organization from others of it's kind.
- Benefits animals that need a home.
Weaknesses
- Contests often include prizes that can be as much as $6000, which means the company will also lose money.
Opportunities
- The list of ideas for these activities are endless.
- Can help company expand better than ever.
Threats
- There's no doubt other companies will get the same idea, therefore also increasing competition.
Articles
http://www.ottawacitizen.com/technology/Adopt+weekend+Petsmart/5684919/story.html?cid=megadrop_story
http://www.ocregister.com/news/event-324310-golden-viejo.html
ATDHE -ADTHE- I agree with you that it is a strategic alliances because UNICEF is expanding their organization by partnering with other companies such as Ikea, Pampers and the Malaysian Government to enable awareness. I disagree with your threat because many countries around the world do need help and takes what help that they can. (ie, Haiti – earthquake, Japan – tsunami) An interesting point is when you pointed out the weakness as unlimited liability.
ReplyDeleteThe company I chose was Wendy's. Based on the articles I read Wendy's is planning on transforming into a "fast casual" restaurant. Wendy's had previously owned Abrby's, but had sold it due to Wendy's loosing almost $4 million in a period of time. They thought it was time to focus just on Wendy's and making the money back. Wendy's has carved out a niche as quality fast-food for adults in the past years, but wants to further that market. The company believes customers will pay more for higher quality food, because of this Wendy's is adding new ingredients and preparation methods, it has helped sales. Wendy's is hoping to expand their company into Japan and Russia. The company is trying to fit in with the competition by making a breakfast program nationwide. They are also introducing a mid-tier "W" cheeseburger line, that gives customers burgers from $2.99-$6 for the biggest size. I believe that Wendy's is using the product development plan, by making new products, like the breakfast menu, and "W" cheeseburger, and bettering existing ones, like making new ingredients for the products.
ReplyDeletehttp://online.wsj.com/article/AP9c505ffb3b7e4a0c854983b19578da7f.html
http://www.nacsonline.com/NACS/News/Daily/Pages/ND1111117.aspx
http://foodservice.csnews.com/top-story-wendy_s_to_take_on_fast_casual__expand_breakfast-1039.html
SWOT
S-Wendy's has a niche for quality fast-food for adults
W-They do not offer the breakfast menu nation wide
O-They want to expand into Japan and Russia
T-Company's who already offer a breakfast menu nation wide
-Company's that already have the "fast-casual" name (Five Guys,Smashburger)
Commenting on Jordans post...
ReplyDeleteThis is a good relation to my post because Adidas and Nike are great competitors. I like how he said where the company was going to be in 2015, This shows us that Nike and Adidas has the same strategy. (good planning) I also agree that Adidas with have trouble competing in the snow boring business because it wasn't as popular as it use to be. This is external because they cant control that.
Commenting on zawad's post:
ReplyDeleteI thought it would be interesting to comment on your post considering your company is trying to take market share from Adidas. I thought that you analyzed Nike well and realized how the expansion to other countries is going to be successful. Also that Nike's weakness is that they have a bad rep, because they do. And sincxe the euro cup is approaching, Nike and Adidas will have to battle it out.
http://www.proactiveinvestors.com/companies/news/21389/valeant-pharmaceuticals-to-buy-australias-inova--21389.html
ReplyDeletehttp://www.asianscientist.com/topnews/valeant-pharmaceuticals-acquire-inova-2011/
i'm really sorry i forgot to add links to my post earlier
Commenting on Teaghan's
I think this is very intresting, but from your summary I can see a retrenchment strategy 'DIVESTITURE'(Wendy's selling Arby's after purchasing it due to losses incurred) and i can also see another growth strategy 'MARKET DEVELOPMENT' (Wendy's trying to expand company's outrech to Japan and Russia).Aside from that,i completely agree with you and i think you did a good job