Analysis produces the strength, weakness, opportunities, and threats for the company to model its current advantages and potential market pitfalls. Strength Low technological requirements to manufacture / Low cost – greatly supports the initial production and promotion process through offering trial pricing instead of active advertisement while continuing to incur a profit. We are able to license the produce to the lowest bidder while retailing the basic operation of the product due to its simplistic design and operations.
Environmentally friendly product manufacturing design – Through using recycled plastic for our main construction process, we are able to retain a green image while simultaneously reducing costs. Having this design asset greatly improves our public relation image as well as driving support from green activists in promoting uses for recycled plastic. Unisex suitcase geared towards universal clothing sizes – Through the extendable design and multiple compartments, the suitcase will accommodate everyone providing maximum convenience. Weakness
Relatively large space requirements – Compared to alternatives such as plastic bags which offers a compact storage attributes, this may be a critical weakness due to the space sensitivity exhibited by today’s consumer standards. Reliance on licensing thus relinquishing control over quality and product service controls – the reliance on licensing for manufacturing as well as distribution will create variations in service performance and thus is detrimental to the brand image of the product. In addition, the large shelf space requirements will greatly hinder the negotiation processes with strictures.
Require large sales volume to produce adequate return on investment – due to the limited initial capital investments and the low margins due to trial pricing, the suitcase will require substantial sales to acquire a satisfactory return to attract further capital investments. Opportunities Strong and growing interest for convenient formal attire storages – The average prices of suits and dresses are increasing substantially in accordance to fashion trends. This increasing sales trend provides evidence for future expansions to seize his growing market and internationally.
Potential to collaborate with renowned cloth makers – As the suitcase gains momentum; its consumer recognition will be reflected in the partnerships that will use the brand equity of others to penetrate high-income consumers. Threats Low technological requirements may attract copying and counterfeits – This threat can be mitigated through utilizing the strength of low pricing and passive advertisement to limit the revenues in entering the market and thus creates a barrier of entry for competitors.
Increase pressure on the use of any kind of plastic – As time progresses and after the product attracts investments, many alternative forms of construction materials can be used including leather that also creates additional product lining. Cyclical economy and recessions will cause variations in sales as consumers result to low cost storage alternatives – The suitcase is promoted through volume, and thus as the product gains popularity, it can be offered at minimal pricing effect of recessions on the economic bottom line.