Topic:SWOT Analysis for Fictional Car Company
SWOTAnalysis for Fictional Car Company
Turning weaknesses into opportunities
Theweaknesses and threats faced by Fictional Car Company are significantsuch that they have the potential to lead to the company losing morecustomers and revenues. However, it is possible to turn these intoopportunities to that will strengthen the company. It can turn thelow customer satisfaction rating into an opportunity by embracingmultichannel support in the way it engages with its customers. Toachieve this the company will have to make use of new communicationchannels like social media, the internet, and emails. All of thesehave become progressively significant to customers.
Thissocial media and internet approach will also help turn around thecompany’s failed franchises, many of which failed because they didnot market their vehicles on the internet. Presently, car buyersvisit a particular dealer’s website so that they can be sure thatthey will find the specific models they desire when they visit ashowroom. By designing attractive websites the company will improvethe online visibility of its franchises, and attract more customers.
Toaddress the weakness of the high associate turnover, the company canchange its remuneration plan. Currently, the company uses acommission-based system to pay its associates. LaReau (2017) proposesa switch to a “salary-based system, and a reduction in the numberof hours worked”. The company can offer a pay of $18/hour and havethe associates work for 35 hours a week instead of 45 hours.
Thecompany can turn its damaged brand image into an opportunity bypartaking in charity activities. It can donate a car to a homelessshelter, make charitable donations to various trusts and foundationshelping the needy. Emily Chasan of The Wall Street Journal statesthat this is a cost-effective action a company can take (Chasan,2014). This will paint the company in a positive light and helprebuild its name.
Turning threats into opportunities
Todeal with aggressive competitors such as Toyota the company candesign products targeted at the local population residing in the areait operates in. Since the company is situated in Indiana (and closeto the Indianapolis 500 Speedway) where racing is popular, it cancome up with an after-sales service in which customers can have theircars fitted with road-legal modifications that will enable them totake part in different races at the several racing circuits in thecity. This will create a niche market for the company.
Thecompany can turn the threat brought about by regulations and fines byinvesting in technologies to best protect its customers’ privateinformation. These might include firewalls, and an intranetconnection linking databases containing customer’s information thatis isolated from the internet to eliminate hackings. These effortswill also in turn boost customer satisfaction and attract morecustomers.
Chasan,E. (2014, 01 21). HowCompanies Rebuild Reputations After Restatements.Retrieved from The Wall Street Journal:http://blogs.wsj.com/cfo/2014/01/21/how-companies-rebuild-reputations-after-restatements/
LaReau,J. (2017, 02 13). Strategiesfor reducing employee turnover.Retrieved from Automotive News:http://www.autonews.com/article/20170213/RETAIL07/302139956/strategies-for-reducing-employee-turnover