SWOT analysis for APL Shoe Company
A convincing business plan has to take much concern for the company SWOT. Globaltrade (2010) indicates that; when the company has identified its competitive ability and the weakness, its laid down strategies will lead to greater success. APL Shoe Company has identified the following as its SWOT.
Strength
The company is specializing in sportswear products. A recent study carried out by the trade organizations in Europe indicated that; sports-related products have the largest markets in the world. This will create a substantial market for the company. Specialization in the production of shoes will increase the company’s efficiency while increasing its output.
The company location is Australia where the other company dealing on the same product has opened up the market. This positioning will help the company get the advantage of an already established market the Nike Company.
Weakness
Since the company is starting a new market, it may not have enough information about the market. This might result in reduced sales and the profits might be reduced. The company is also targeting only the shoe supply that is aimed at capturing the sports market. The company, therefore, is lacking diversification. In Sportpanel (2009) a case of failure of the targeted turnover, the company may incur heavy losses. Locating the business where another company has already established poses a considerable challenge to the company. Nike established its operations in Australia before APL, this might pose a threat to the market share. In this same market, Adidas also sells its products it. These companies were established before APL Shoe Company and their products are familiar to the customers.
Opportunities
APL Shoe Company can use the technique of price to capture the market. The prices of Adidas shoes are too high it can based this as an opportunity to divert the market. The company can open many branches in Australia to increase its market base. The other competitors are mostly based in a few Cities. The NBA ban on their new invention ‘Concept 1’ is a blow to the company; they will need to reinvent to get the market again (Exchange Rate, 2010).
Threats
The company faces price wars with Adidas and Nike. The two companies are already established and can change their prices to outwit their operations. Since the two competitors are established in Australia, they have established superior distribution channels that APL Shoe Company might not be able to compete.
Positioning
For APL Shoe Company to position its self well in the Australian market, its product must be designed to go beyond the usage as sportswear but also on other fields like casualty usage. When Adidas and Nike designed their shoes for only field operations. APL must look for alternative applications of its products. The Adidas and Nike companies depend on the club’s market. The APL will target individual customers for their shoe products. The design will include a variety that can help someone practice in the field and not only be used in the field but at home. This has not been used by either Adidas or Nike. The Nikes’ prices are high; APL can produce the same quality products like the ones known in the market but reduce the prices a bit to tilt the consumers to their side. The consumers will compare the quality and price, if prices are the same; they will go for the cheaper price.
Promotion
The server that is crushed will be upgraded to bring the cheapest promotion strategy: the Internet. The company will target the information that is aimed at providing a solution to the existing discrepancies of the other companies’ products. The company will start by sponsoring local teams across the Australia. This will make its products more familiar with the customers.
References
ExchangeRate. (2010). Currency Rates. Web.
Globaltrade. (2010). The U.S. – Australia Free Trade Agreement (AUSFTA). Australia import tariffs – trade policy, regulations in Australia. Web.
Sportpanel. (2009). Better place sport and physical activity as a key component of the Government’s preventative health approach. Basketball Australia. Web.