Wd-40 Case Analysis Essay

4171 Words Apr 19th, 2014 17 Pages
MBS629 – Entrepreneurship and Innovation Management
Lecturer: Mr Alfred Tseng

CONTENTS

INTRODUCTION 4 QUESTION 1 4 Situation Analysis 4 1.0 Source Problem 4 2.0 Secondary Problems 4 2.1 Short Term 4 2.2 Long Term 5 3.0 Analysis 5 3.1 PESTEL 5 3.2 SWOT ANALYSIS 6 3.3 FINANCIAL ANALYSIS 6 3.4 COMPETENCIES AND CAPABILITIES 7 3.5 VALUE CHAIN ANALYSIS 7 4.0 strategic options 8 4.1 Short Term 8 4.2 LONG TERM 8 5.0 RECOMMENDED STRATEGY 8 5.1 SHORT TERM 8 5.2 LONG TERM 8 QUESTION 2 9 EVALUATION OF RECOMMENDATIONS 9 QUESTION 3 10 REFERENCES 11 APpendix A – Framework for analysis of economic features 12 Appendix B – FINDINGS OF ECONOMIC FEATURES ANALYSIS 13 Appendix C –
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Since its inception it had acquired a number of other businesses and brands but its flagship product, ‘WD-40’ remained an international icon with particular popularity in the United States. After experiencing a flat growth rate across a number of years, WD-40 Company found itself in a saturated market with a stagnant stock price and no strategic direction (Yemen et al 2002).
2.0 Secondary Problems
WD-40 Company’s problems typically relate to the industry’s dominant economic features. The framework in Appendix A (Strickland 2010) outlines the aspects considered when assessing the key economic features of the industry. The findings of the economic features analysis are provided in Appendix B.
2.1 Short Term
Sales Growth: As worldwide alternative uses for WD-40 grew, so too did its penetration rates. In 1999, 83% of households in the United States were recorded as owning at least one can (Yemen et al 2002). This saturation of the market led to sales atrophy and a stagnating stock price.
2.2 Long Term
Intra-Industry Competition: There is intense competition within the industry that presents the greatest threat to WD-40’s success. There is little differentiation in products, with competition from both domestic and imported products. The possibility of further mergers and acquisitions within the industry poses a threat as large companies become

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