SWOT Analysis on Leading Auto Company

 

 

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Strengths

Leading Auto Company has been able to segment is the market.  According to Czinkota (2007), Segmentation according to geographical location for different cultures tends to have similar perspectives about individual cars. As the Middle East consumers likes sports utility cars over any other car brand. The firm is also a manufacturer of high-quality automobiles at affordable prices. That has seen the car accessible to majority persons in the world for they prefer high-performance cars at low prices. That has seen its growth be tremendous across the globe. The warranty program that covers less than 100,000 miles for the vehicle is the strength of its rivals. Having a workforce of 20,000 in its branches all over the world is a great, invaluable asset for they make performance of work easy.

Segmentation should focus on income parity (Böhm, 2009). Areas, where they have a higher per capita income, should be charged more. Products need to be diversified to ensure there is more variety to choose. That will create a picture of a company willing to satisfy customer needs. The wealthy will purchase unique high-priced vehicles due to status attached to pricing.

Weaknesses

The firm has over expanded in the world with less ineffective management. According to Richter (2012), decisions are centralized making it difficult to make decisions in the branches. Decisions made at head office favour the main branch and not compatible with other departments in the world. The frustration of employees remaining clueless as they wait for instruction from head office has seen many quit the organization. A total 8,000 employees is a large loss of expertise of skills and knowledge.  Customer expectations are not met and have led to the decline in demand and subsequent losses.

Branches should have autonomous to make decisions (Czinkota, 2007). Employees need to be given that freedom of making decisions that need action prompt but be accountable. The freedom will boost creativity and innovation in workers. They will feel appreciated by the firm. In response they will offer good customer service making the firm highly regarded.

Opportunities

Leading Auto Company has an opportunity to make environment-friendly cars. That will be in compliance with the government requirement. That will result in saving from elegant evasion through conformity. Böhm (2009) says customers will get economical fuel usage cars. There is an opportunity to implement innovation by mechanization to save on labour costs.

The firm should diversify its products, not to financing but different cars models (Richter, 2012). The firm should invest in research on how to make fewer pollutant cars. That will see it become the firm manufacturer of environmentally friendly cars. That will lead to uptake of many units in the market. That is an opportunity to become the market leader.

Threats

Competition from Toyota, Ford and GM is immense. They are losing some of the market shares to the firms. The trade-in of $ 5,000 to any car without any valuation is its undoing. People will use their cars recklessly for them to take advantage of the trade-in process. Trade-ins valuation will make the firm suffer from unscrupulous traders out to benefit from the deal (Czinkota, 2007). The dealership is an excellent opportunity for false claims of defective in cars.

 The firm should go on aggressive marketing against its rivals. The message should portray them as producers of lesser quality. The firm should have base trade-ins on the valuation of cars to establish the real worth of a vehicle (Böhm, 2009). That will eliminate any dubious claims against the firm. The firm should set up its outlets to eliminate dealership.

References

Böhm, A. (2009). The SWOT Analysis. München: GRIN Verlag

Czinkota, M. R., & A, R. I . (2007). International marketing. United States: Thompson

Richter, T. (2012). International marketing mix management: Theoretical framework, contingency factors and empirical findings from world-markets. Berlin: Logos

 

 



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