Case Analysis for Surfside Leisure’s cape Case Study Solution
Threat of substitute products
The company has the threat of the substitute product that the same product is available in the market at the lower price, so competition might increase. But it can be overcame by maintaining the customer loyalty.If the company provides the high quality products and maintains the customer loyalty so there would very less chances of the threat of substitute product. Besides, the company can reduce the threat by improving the quality of the product, and by providing great exposure of the products to its customers.
Rivalry among the existing firms
As the demand for the product has increased; the opportunities in this business have also increased. There is a very large number of competitors entering in the market, and the surfside can lower its rivalry by providing highly differentiated products to its customers. Moreover, the company should build good customer relationship to attract its clients towards its products. Besides, the company should work on its pricing strategies n order to maintain its market share.
Bargaining power of suppliers
The company can build up its place in contradiction of its dealers by diminishing the reliance on one or a few dealers. It will rise its “price sensitivity”. Moreover the company can develop the robust agreements with its customer, and can maintain the good relationship with its contractors from different areas, which will not only reduce their bargaining power, but also permits the company to improve its products and supply chain proficiency. In conclusion, the company can identify the alternative ways of manufacturing the product. If the demand for the product is high enough.The company needs to increase its proficiencies and capability. Moreover, it requires comprehensive “cost-benefit analysis” to identify its viability. Besides, the company should focus on diversification and restructuring of the products lines, which help the company to reduce the “supplier” power in the market.
Barging power of buyers
Bargaining power of buyers specifies the burden that clients utilize on the various companies to acquire the good quality products at reasonable prices with the tremendous client service. This will influence the company’s ability to achieve the commercial goals. Robust“bargaining power”drops the profitability and creates the business more economical. However, when the power of buyer become fragile, it makes the business less viable and rises the profitability and growth opportunities for the company.(case48, 2018)
SWOT Analysis
Strengths
The company is leading in the market, and has the largest market share in the Sales and Marketing manufacturing. It has helped the business to promptly gauge new products successes. Moreover, the company has the wide-ranging products that helps the company in targeting diverse client segments in Sales and Marketing segment. It has also supported the business to differentiate income streams. Besides, the company has widespread trading system and connections that not only support in bringing effective services to the clients, but also help in dealing with the competitive challenges in the manufacturing industry. Additionally, the company has the talented human resource that is the key to the success of the company.
Weakness
The company has higher pressure of its operations, as the financial performance of the company is not remarkable as compared to its competitors. Moreover, the company has the higher turnover rate of its employees. So, the company has to provide the higher salaries to retain its employees. Additionally,the Sales and Marketing business are more developing than the company. In such situation, the company has to prudently analyze the numerous trends contained by the Market research and pricing strategies.The company should identify the needs of the potential customers for the expansion of the company.
Opportunities
The company has numerous opportunities to expand its business.By performing market research, the company can identify the needs of the potential customers. Moreover, the company can maintain its goodwill by collaborating with various domestic dealers. Likewise the company has the brand recognition, it can attract the larger market and can gain the larger share in the markets.
Threats
The company has the threat of the legal regulation.Moreover, the company has to face challenges to compete domestically as well as at an international level.The company has the threat of the shortage of proficient human resources and modern technologies. The company has the large number of its customer, so the company has to respond to the needs of the customers by keeping their preferences change in considertation.
Financial analysis
The company’s financial and sales position are shown in exhibit 1. The sales are increasing at the decreasing rate over the months, which shows that the launching of new product is unattractive to its existing as well as the potential customers, which could be due to the lack of marketing strategies. Therefore, the company should focus on the marketing plans and develop various marketing plan and customer surveys n order to identify the area of improvement and customers’ needs.Moreover the company should also concentrate on the product mix and identify the ways to alter them in the minimum costs.
Decision Criteria
The decision criteria of the company should be based on the market research to make the effective marketing plan. As the company is facing the large competition with in the market, the company needs to identify the key critical issues through the market research. Market research helps the company to find out its loop holes and the areas of improvement. Moreover, it also supports to seek customer preferences for the new products. This method also provides an opportunity to attract various potential customer hence, it will support in expansion of the company. After identifying the key issues and the area of improvement; the company needs to develop the comprehensive market strategies and various market plans to execute those strategies.The company should ensure that the plan should be commercially viable and attract the potential clients towards the new markets. Besides the company should also focus on its product lines, and should identify the lacun as related to the products that the company is selling. To overcome the issue of product mix; the company should take feed backs from its clients, and should perform the various market surveys for the purpose of seeking new product mix,which will increase the sales of the company in near future.
EXHIBITS
EXHIBIT 1
EXHIBIT 2
| Threat of substitute products | Rivalry among the existing firms | Bargaining power of suppliers | Barging power of buyers |
| High | High | low | low |
| • The company produces the same product available in market. | • The higher demand of the product creates more demand for the business hence, creates rivalry. | • The barging power is low due to the quality product and long-term contracts | • The barging power of buyer is low due to the higher quality product at reasonable price, |
EXHIBIT 3
| Strengths | Weakness | Opportunities | Threats |
| Brand equity and customer loyalty | Expansion requires large capital investment, or the business is more caption incentive. | Investment in research and development to cater new market place. | Shortage of skilled and efficient human resource. |
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