Business Strategy High School Essay Example | Topics and Well Written Essays - 750 words

trading Strategy High School - Essay ExampleTheir size has left them vulnerable to more waxy competition that can produce at a lower apostrophize.Opportunities They have an ideal opportunity to considerably expand their grocery store sh atomic number 18 in the cordless market. Though the distri simplyor network is currently a weak spot, Smith and White has an opportunity to restructure their distribution to their benefit. Their large size and brand credit rating would give them the opportunity to form channel partnerships or enter direct marketing outlets such as through a web site.Threats Their largest competitor, Makatume, can vie on price. Makatume has older battery applied science, but has the cost structure to develop new technology, enter that market, and pre-empt Smith and White. Smith and White would be forced into a follower position on technology and price. Also, Able is on the horizon with a strong cordless product. They have been seeking a buyout or merger, which could reinvigorate them as a major panic. There ar in any case several smaller companies that have no barriers to expanding and innovating.Smith and White needs to take 3 aggressive actions Reduce costs, enter the battery market, and differentiate the professional line. This would be accomplished by make the professional and consumer lines separate line of work units. Relocate the manufacturing of the professional line to a lower cost environment. break away a superior cordless line for the professional products to compete directly with Makatume and re-brand it with a similar but more robust image. The rebranding would have the required fundamental changes to the product to create a positive market acceptance (DeYoung 2006). The brand recognition and battery technology would differentiate the product. This would hold off the need to compete on price (Day & Reibstein 1997 p.36). Smith and White would be in a superior position with newer technology and higher voltages.Smith and White should then use the battery technology and transfer it to their consumer brands and take market share from Able Co. These products could be sold through distributor partners. Resources would need to be dedicated to rebuild the distributor relationship, but this will be vital. The long-range plans would include renovation or relocation of the consumer business to a lower cost area. SWOT Analysis Strategic PlanningMakatumeStrengths Makatumes dominant place in Japans market gives them a great force for entry into the US market. They can easily increase their tax revenue by capturing shares of the US market. They would not be in a position to need to spend resources protect an existing position. They also have the advantage of their new plants and their low cost structure. Their dedication to the professional market has simplified development and marketing.Weaknesses Though their dedication to the professional line can be a strength, it is also a limitation. It limits the market and restricts the outlets. Their current battery design is old and needs redeveloped. This will drain resources in the near term. They also suffer from low brand recognition in the US. Threats The most immediate threat is the exchange rate fluctuation. It may make it difficult to borrow or finance any expansion. They are also threatened by the several competitors that have a small market share. Makatume has no situation advantage over them.