SWOT analysis of Machineland

SWOT analysis for Machineland Storefronts Co. (Entrepreneurial venture and small business)

 
Strengths

The strengths of the company include: 1) quick respond  (located in the Greater Toronto Area or GTA downtown); lower cost (short distance, less mileages and labor charges);  2) superior product and service quality; 3) committed employees (offers emergency 24/7 services); 4) better marketing skills (nonstop searching new marketplaces with innovative approaches and open concepts); 5) respected service company and number one ranking in the trade with 90 days parts AND labor warranty; and 6) superior management talent with open communication.  All these strengths not only enable the firm to meet customers' needs (quality, speed and responsiveness, low prices, innovation, and convenience), but also improve the value of its stakeholders, including employees, suppliers, investors, and community. In short, all these strengths not only differentiate the firm from its competitors in term of quality of service (quick respond and lower price with the best warranty), but also initiate and build a standard of service in the trade. Service and management excellence are the major objective of the company.

Weaknesses

The weaknesses of the company contain, such as: 1) project planning absent or missing; 2) limited financial resources and credit system (small business with no new investors or capital, and no credit extension to customers); 3) very narrow product line (commercial storefronts and doors only); 4) out-of-date technology (especially in production, tools and office or computer equipments); 5) limited marketing budget or funding; and 6) inadequate spending on R & D. All these weaknesses prevent the firm from meeting some customers' needs, especially those large corporations that want to pay over 45 days or more.  In all, strengths are significant only as they provide and function to meet with customers’ needs (and that strength develops into a kind of capability). Ferrell & Hartline (2008) suggest firms “can then develop marketing strategies that leverage these capabilities in the form of strategies competitive advantages.  At the same time, the manager can develop strategies to overcome the firm’s weaknesses or find way to minimize the negative effects of these weaknesses” (p. 127).  In this case, weakness could cope or get by and may turn into a new chance or opportunity if management really wants or comprehends how to manage it.

Opportunities

Potential external opportunities include: 1) changing or converting of existing products and services for new markets;  2) changing or new distribution approaches (e.g., via Home Depot chain stores); 3) increasing of populations or marketplaces (e.g., bring in more shoppers and more retailers); 4) new technology; 5) economic boom; 6) increasing of market share; and 7) complacent  rival firm. Some of these opportunities related to serving customers' needs, such as the changing distribution systems or new product or service discoveries (Ferrell & Hartline, 2008). 

Threats

The issues of threat include: 1) new competitors join in; 2) sub-trades have little loyalty; 3) economic pressure; 4) price competition; 5) rival firms adopting new marketing plans; 6) increased government rules or by-laws; and 7) larger competitors, or national firms get majority market share.  After recognizing opportunities and threats, management can design and build strategies to gain benefit of opportunities and minimize or overcome and beat the company’s threats.

In short, in order to succeed in business, the company and management should maintain or leverage strengths, and prevent or stop weaknesses, and must increase, optimize or prioritize opportunities, and minimize or avoid threats. Increasing cost effective and efficient, improving the value of stakeholder (including employees, investors, suppliers, and communities), and advancing customer services and management excellence are the goals of strategic management and business policy.

References

City of Toronto (COT). (2009).  Living in Toronto. Retrieved on April 15,   

       2009, from http://www.toronto.ca/toronto_facts/diversity.htm

Ferrell, O., & Hartline, M. (2008). Marketing strategy (4th edition). Mason,

       OH: Thomson South-Western.

Wheelen, T., and Hunger, J. (2008). Concepts in Strategic Management and

 Business Policy (11th Edition). Upper Saddle River, NJ: Pearson Prentice


Hall.