Part A:
1.
Strengths:
-merbatty has a superior technological advantage over its competitors
- merbatty has built a brand for itself. It is a brand name and has been around for over 33 years
- they also have a great market positioning
-They have a worldwide clientele base as they trade the world over through the use of sales agents
Weaknesses:
-there is little to no training for staff other than engineers and designers
- they don't seem to have a cash forecast in their 5year plan
- they pay high commission fees to their sales agents of around 4%of final revenues
- they receive their revenue from sales through 3 installments the first being a mere 20% deposit, which doesn't even cover the costs associated with making the final product. Should the customer decline the product or cancel the order merbatty will not be able to cover its costs.
Opportunities:
- innovation innovation innovation. Merbatty believes that customers should get the best possible result using new and innovative methods
- there will be an increased market base as they carry out their expansion plans into other regions
- new opportunities to have a wider range of products, new boat designs
…show more content…
They have enjoyed rapid growth in sales as well as in profitability which is a sure sign that they have been able to remain competitive. Merbatty keeps it's competitive edge by giving the customer what he/she may want. From a technological perspective the company should be able to remain competitive so long as it keeps investing in new IT systems such as the newly released production management software system. This system currently helps them improve productivity and increase resource utilization. The impact of emerging technologies is a great one as it decides whether or not a company may remain competitive pr even relevant in its said
Their main focus for revenue growth will be expanding revenue opportunities and this also includes making the customer value stronger and better. The company’s financial goal is to expand in locations within three years and still being profitable consistently. With growth the company will have more employees hired on and this means training for the new employees. The factors of their competition must be considered as well when they expand in location. The company must know where they stand in the market compared to their competitors and with innovative and new technologies the company will be successful and profitable.
• The company has the opportunity to grow in various markets and aquire new customers such as malls, hotels, offices, and motels not only in Canada but as well as the United States.
allowing us to win new customers in the region. We look forward to a strong relationship
Well-established and enjoys a good reputation and good relationships with its retailers. A respectable name in the industry is very important when it comes to standing out from the competition and contracting with different retailers.
Marketing and promotion: The aggressive marketing and promotion is strength to the company from several years. It has implemented many successful advertising and promotional strategies over the time which includes new format of UK stores “Brighter look”, “Your M&S” slogan, “Quality worth every penny” etc.
Note: To make the balance sheet balance, define cash as equal to (Current liabilities + Net worth) – (Accounts receivable + Inventory + Other current assets + Net fixed assets).
worldwide to serve the customers and is famous for the variety of products that it provides in the
“You can innovate the promise you are making, you can innovate the products you deliver, or you can innovate with different communication channels in how and where you have dialogue with your customers around that product,” (McReynolds, 2012)
We will gain additional flexibility with price points. There is opportunity for us to expand from a regional brand to a national brand. While we continue to emphasize the premium teddy bear gift business, we intend to expand into larger markets. There is now a whole new opportunity for us in the corporate incentives and promotions market as well as the wholesale market Our growth will come not only from expansion of our radio markets but in the corporate and wholesale markets as we use offshore manufacturing alternatives to move to broader price points," (Wheelen & Hunger, 2004).
We can already see that with their current expansion into the food delivery business. Instead of partnering with an already existing food delivery service, they are entering that market.
Analyzing the trends and consumer behavior indicates that horizontal expansion will be necessary to capture the full and growing target market. Horizontal expansion can be
In the future, licensing will keep increasing and its percentage of revenue will grow, especially if the management adopts a strategy of capitalizing on it.
Competitive advantage is that a company has better ability in earning profit and profit growth compared to its competitors for the same group of customers in one industry.
* The company has to suffer economical loss due to its cyclic nature of production. The production does not run at full efficiency every time. This leads to the waste of energy, money and resources.
If Innobus finds a new market their sales will increase and improve their financial position.