Category: SWOT Analysis

Swot And Pestel Analysis Of The Capital Market In India

SWOT ANALYSIS

Strengths

SWOT analysis could also be used in pre-crisis preparation and crisis preventive administration. A SWOT analysis must be correct, appropriate and reliable, so that it can contribute to the major decision-making process. Brand perception card A SWOT analysis is really useful for defining the external and internal aspects that affect Nike.

The market is unstable on occasion, and you can deposit money if you do not do it wisely. Niche markets end up being lucrative as a result of technological changes. An outstanding real estate financial investment can be a self-liquidating possession that can provide you with large passive gains later on. It is necessary for a service to understand its strengths, such as the best performance of activities or services, in addition to its weak points, of the business areas listed below at para. New services must use SWOT analysis as part of their readiness practices. In addition, the company should have the opportunity to develop in international markets. At first, it remains unprofitable.

An employee SWOT analysis design template can also be downloaded if you prefer a reference to the problem. You can also use our SWOT analysis templates to get started quickly. Creately offers many more colorful SWOT analysis design templates, ideal for any business.

SWOT analysis models have an unlimited number of benefits, some of which are as follows. Another advantage of SWOT analysis is that it focuses on the main issues that affect your organization.

The aim of swot is to recognize the strengths and weaknesses that are related to conference opportunities and threats, including scenarios. If the goal is not achievable, they must choose a different goal and repeat the approach. For starters, you are advised to choose your goal and decide on the location of your business on which you want to focus the analysis. The most crucial goal of a SWOT analysis is to help organizations gain full knowledge of all the elements associated with a determination. The goal of a SWOT analysis model is to continue recording each identified aspect as a consequence of the SWOT analysis.

Weaknesses

The external aspects, on the other hand, are the variables that are outside the properties of the company. When preparing a project, it is essential to learn about the external and internal elements that can affect the business.

The effect can be understood in the 5 countries. Nevertheless, you will die and live thanks to the power of your SWOT facilitator. The effectiveness of SWOT analysis is not limited to for-profit companies. If you already know the SWOT analysis, you can start right away with our blank template. Two other examples of SWOT analysis but using a little color.

New businesses should use a SWOT analysis as part of their readiness practices. You can also use our Motilal Oswal Financial Services Ltd. IPO In India SWOT Analysis Models to get started instantly. The goal of a SWOT analysis design model is to continue to record all aspects that have actually been identified as an impact of a SWOT analysis.

If you are familiar with Motilal Oswal Financial Services Ltd., Ipo SWOT Analysis In India, you can start right away with our blank design template. SWOT analysis could be used successfully to develop a personal or organizational method. If done correctly, an individual SWOT analysis can help you develop a comprehensive action plan to help you achieve your business goals.

The first and most important thing to keep in mind is that the SWOT test is a systematic action plan. A SWOT analysis test will be given to you if you study in a company.

A SWOT analysis allows a business owner to assess his position in the market. It is especially used for professional tasks, but you can also use a doc document. From individual swot analysis model to assess your strength and your weak points in your individual life. While SWOT analysis may be useful, it has some limitations and risks that could further complicate decision making. It is a type of diagram widely used in business and education to check strengths, weaknesses, opportunities and threats in a given situation. What is a Motilal Oswal Financial Services Ltd? A SWOT Analysis Report in India by Ipo In India, you will understand what needs to be monitored. It presents 4 key elements of your organization. Your business plan may contain a SWOT analysis.

Opportunities

SWOT can be useful when launching a project or whenever your team has encountered an obstacle. Properly, he or she can be a great help for senior managers to develop an appropriate technique for businesses. He or she is really useful for structuring ideas on a project. A SWOT is an easy-to-build analysis tool. He or she is really just a tool used to give a general overview of a business. When you have to, a well-thought-out SWOT analysis weighs the elements against each other to determine what your business needs to do and what it should do.

The best way to understand SWOT analysis diagrams is to check a few examples of SWOT analysis diagrams. If you want to include a SWOT analysis chart in Excel or another document in a landscape layout, the next SWOT model will be much better.

The report provides a detailed overview of important sections of the market. As it can take days, it is not necessary to consult the full report! In summary, this is an in-depth research report on the global market for fire extinguishing cylinders.

Readymade Motilal Oswal Financial Services Ltd An Ipo Analysis In India, you can use it on the Web, we have created a variety here. SWOT analysis is part of social change treatment readiness and will not provide a tactical strategy if used alone. Individual SWOT analysis is exceptionally crucial for slamming and improving.

Threats

For the moment, as soon as you perform a swot analysis, you will want to consider all the essential facets. By clearly analyzing all the positive and negative aspects of an effort, SWOT analysis simplifies the choice of the future. Since the swot analysis is for commercial purposes, it is therefore possible to share it with various people, who have the opportunity to use various devices. At the same time, a very successful SWOT analysis can help determine where a service provider succeeds.

Motilal Oswal Financial Services Ltd., an IPO in India SWOT analysis could be used effectively to develop an organizational or private method. It is especially used for professional tasks, but you can also use a personal swot design analysis work template to assess your strengths and weaknesses in your personal life. The ideal way to understand SWOT analysis diagrams is to look at some examples of SWOT analysis diagrams. If you need to integrate a SWOT analysis chart into Excel or another document in the landscaping, the following SWOT model will be much better.

BULL MARKET

A bull market is the condition of a financial market for a group of securities in which prices are rising or expected to rise. The term ‘bull market’ is most often used to refer to the stock market but can be applied to anything traded, such as bonds, real estate, currencies and commodities. Since the prices of the securities rise and fall substantially continuously during trading, the term ‘bull market’ is generally reserved for extended periods during which a large portion of the price of the securities increases. Bull markets tend to last for months or even years. Bull markets are characterized by optimism, investor confidence and expectation of solid results for long periods. It is difficult to predict consistently when market trends may change. Part of the difficulty is that psychological effects and speculation can sometimes play an important role in the markets.

No specific and universal metric to identify a bull market. Nevertheless, the most common definition of the bull market may be where stock prices rise by 20%, usually after a 20% drop and before a second 20% drop. Bull markets are difficult to predict and analysts can usually only recognize this phenomenon after it has emerged. Recent history has been marked by a significant bull market between 2003 and 2007. During this period, the S & P 500 has increased significantly after a previous decline; With the coming into effect of the 2008 financial crisis, the bull market has again fallen sharply.

Characteristics of a Bull Market

Bull markets generally occur when the economy strengthens or is already strong. They tend to occur alongside a strong gross domestic product (GDP) and a decline in unemployment and often coincide with an increase in corporate profits. Investor confidence will also tend to rise during a bull market period. Overall demand for equities will be positive, as will the general tone of the market. In addition, there will be a general increase in the volume of IPOs on bull markets.

Some of the above factors are more easily quantifiable than others. Although corporate profits and unemployment are quantifiable, it may be more difficult to assess the general tone of market comment, for example. The supply and demand of securities will change: supply will be weak while demand will be strong. Investors will be eager to buy securities, while few will be willing to sell. In a bull market, investors are more willing to participate in the market (stock market) in order to make a profit.

BEAR MARKET

A bear market is a condition in which stock prices fall by 20% or more compared to recent highs, while pessimism is widespread and the negative sentiment of investors. In general, bear markets are associated with overall declines in a market or index such as the S & P 500, but individual securities or commodities may be considered part of the bear markets. they experience a decline of 20% or more over an extended period – usually two months or more.

The main US stock market indices fell in bearish territory on December 24, 2018. The last long bear market in the United States occurred between 2007 and 2009 during the financial crisis and lasted for about 17 months. The S & P 500 lost 50% of its value during this period. Bear markets can last several years or just weeks. A secular bear market can last from 10 to 20 years and is characterized by below-average returns on a sustained basis. There may be occasions in secular bear markets where equities or indices recover for some time, but gains are not sustainable and prices return to lower levels.

Characteristics of Bear market

Bear markets occur during a recession. In 1945, eight of the last ten bear markets occurred while the economy was in recession.

It is therefore not surprising that the stock market’s downturn is deeper and lasts longer when the economy is in recession. During recessions, the median equity market decline is 32% and lasts 17 months. During the economic expansion phases, the average market decline was much lower (21%) and lasted only six months.

The stock market is a leading indicator of the direction of the economy. The US economy and the stock market are both cyclical, but the stock market usually changes before the economy. The stock market generally peaks six to twelve months before the start of the economy and its decline. When the economy is in recession, the stock market is generally losing momentum and starting to recover three to six months before economic growth picks up.

Investors should not make investment decisions based on the economy. For example, an investor who sees the economy going badly might be tempted to reduce his equity allocation. Unfortunately, at the time of the economic downturn, the stock market is probably already down for some time and much of the downturn may have already occurred.

Conversely, an investor will sometimes say that he is waiting for things to look better before investing again. But as the market often starts to rise three to six months before the economy starts to improve, they often miss the strongest months of the market if they expect the economy to be better.

PESTEL analysis of Indian capital market

POLITICAL:

India’s capital market is very vulnerable. India has been politically unstable in the past, but it is politically stable these days. The country’s political instability has a very strong impact on the capital markets. The Indian stock market is evolving along with political changes. The BSE SENSEX index moves with all sorts of political information, as if there is information that a particular political party has withdrawn its support for the ruling party, then the capital market would collapse spectacularly. . The capital market in India is very weak and is based on speculation. The political stability of the country is very important for the stability and growth of capital markets in India. Political imbalance or country equilibrium is the main determinant of the capital market in India. Political factors include:

• employment law
• fiscal policy
• trade restrictions and tariffs
• political stability

ECONOMICAL:

The economic measures taken by the Indian government have a very close relationship with the capital market. Whenever the annual budget is announced, the capital market fluctuates with the government’s economic policies. If policies support companies, the capital market takes it positively and if there is another policy that does not support it well, then the capital market goes down. As in the case of the 3-G spectrum allocation, the companies that obtained authorization for 3-G, they witnessed a strong growth in the value of their shares, so that economic policies play a role. major role in the growth and decline of the capital market and again, if there is a relaxation of taxes on automotive products, the share of the automotive sector increases and virtually strengthens the capital market. Economic factors include:

• inflation rate
• economic growth
• exchange rate
• interest rate

SOCIAL:

India is a country of unity in diversity. India is socially rich, but the capital market is not very tied to social factors. Yes, there is a link between social factors and the capital market. If there is a significant social factor, the capital market suffers to a certain extent, but small social factors have no impact. For example, there was opposition to new trust in many cities and many shops were closed. The stock price of the new dependence fell, but the impact was felt and each company had little impact on the capital market. In general, social factors do not have much impact on the capital market in India. Social factors include:

• focus on security
• career attitudes
• population growth rate
• age distribution
• health awareness

TECHNOLOGICAL:

Technological factors do not have much effect on the capital market. India is a technological backward country. Like social factors, the technology factor can affect an individual form, but it can not have a large impact on the entire capital market. Bajaj has been granted a patent on its DTS-i technology and launched it on its new bike, but this has no impact on the capital market. Technological change in India is still on a lower base and it does not affect the country as a whole. Technological factors include:

• R & D activity
• technological incentives
• rate of technological change automating

ENVIORNMENTAL FACTORS:

Initially, environmental factors do not play a vital role in the capital market. But time has changed and people are more respectful of the environment. It really bothers them if a company or industry is environmentally friendly or not. A growing number of people, investors and business leaders are paying attention to these facts. Financial markets still view the environment as a handicap. They feel that this is of no use to their strategy. Environmental performance is even underestimated by the markets.

LEGAL FACTORS:

Legal factors play an important role in development and support the capital market. Legal issues relating to any sector or company determine the fate of the capital market. If the gov. from India where the parliament introduces a new law that can affect the functioning of the industry then the industry will be demotivated and this demonization will lead to the demonization of investors and will lead to the fall of the capital market. As after the Hardhat Mehta scam, new rules and regulations were introduced, such as the PAN card was needed for trading. If an investor invested too much money in a small business, he was then questioned. These regulations were aimed at maintaining transparency in the capital market, but at that time investments were discouraged. Legal factors are necessary for the improvement and stability of the capital market.

Swot Analysis Of Hindustan Unilever Limited

MEANING OF SWOT ANALYSIS

A SWOT Examination could be a vital arrangement method utilized to decide and state your Strengths, Weakness, Opportunities, and Threats – SWOT.SWOT investigation can be useful to a whole company or organization, or Person ventures inside a single subdivision. SWOT examination are utilized to control how closely a commerce is related with its development target and victory guidelines, but they can moreover be utilized to find how well a specific venture is going on.

‘’SWOT analysis entails a distillation of the findings of an internal and external audit that draws attention, from a strategic perspective, to the critical organisational strengths and weaknesses and the opportunities and threats facing the organisation.” – Kotler and Armstrong, 2011

ELEMENTS OF SWOT ANALYSIS

Strengths, Weakness, Opportunities, and Threats are the main four elements of SWOT analysis.

INTERNAL FACTORS:

Internal FACTORS: Strengths (S) and Weakness (W) are the inner variables that are connected or accessible to us. Here are a few common inside factors:

• Physical assets (hardware, offices and location)
• Financial assets (sources of salary, venture openings and funding)
• Right of passage to characteristic assets, licenses, trademarks and copyrights
• Human assets (volunteers, target gatherings of people and employees)
• Current preparation (volunteers, computer program frameworks and employees).

EXTERNAL FACTORS:

Factors those impact or affect a company or a person or which in nit in your control are known as outside variables. They are straightforwardly connected or associated with Opportunities (O) and Threats (T).Here are a few external factors:

• Demographics (the statistic may be a key variable utilized to depict the showcase segments)
• Relationship with provider and partners
• Market patterns (innovation progressions, modern items and alter in audience’s needs)
• Political, financial controls and natural rules
• Economic patterns (territorial, national and worldwide budgetary trends)
• Funding (assembly, gifts and other sources).

Advantages of SWOT Analysis

• SWOT Examination is compelling in procedure definition and choice
• It may be a tough apparatus, be that as it may it contains an extraordinary subjective part.
• It is best once utilized as a direct, and not as a prescription
• Successful businesses shape on their qualities, rectify their weakness and guard against inside weaknesses and outside threats
• They conjointly keep observe on their in general trade encompassing and decide and abuse modern openings quicker than its opponents.

SWOT Analysis helps in strategic coming with in following manner-

1. It serves as a basis of material for strategic planning.
2. Shapes organization’s strengths.
3. Reverse its weaknesses.
4. Make best use of the opportunities.
5. Overcome organization’s threats.
6. It helps in recognizing core aptitudes of the firm.
7. It helps in setting up of objectives for strategic planning.
8. It helps in knowing past, present and future so that by using past and current data, future plans can be marked out.

Disadvantages of SWOT Analysis:

SWOT Analysis is one of the most broadly used method of the strategic management process. The criticism is directed to SWOT Analysis in spite of its wide usage as an analysis tool. In this regard, the criticisms include that it is not in effect enough as a part of structural strategy, it cannot go beyond making a definition regarding the present situation, and for this reason, its recognized as an analysis technique.

1. It is only one phase of business planning
2. A lack of poor hierarchy leads to problems
3. Too much plot or policies leads to poor decision making
4. It becomes unbelievably subjective without the right material
5. Information burdened disturbs the result

STRENGTHS:

• sturdy brand equity
• strong universal presence
• dominant supply chain all over the world
• concentrates on research, development and innovation
• vast product portfolio
• strong spot in U.K market

WEAKNESS:

• decrease in net income
• extremely reliant on on US market
• declining sales in China
• Limited international choice of production network
• Higher costs associated to competitors
• Slow innovation procedures

OPPORTUNITIES:

• digital marketing
• independent driving
• emphases on Asian markets
• partnerships for development
• World-wide growth through market penetration
• Progress through product development
• Cost decline through strategic supply chain organization

THREARTS:

• competitive pressures
• variations in key market’s
• rising costs of raw materials
• regulatory pressures
• Hostile competitive competition
• New entrance of high-tech companies
• Changing oil prices

SWOT ANALYSIS OF HINDUSTAN UNLIVER LIMITED

Introduction

Hindustan Unilever Limited (HUL) is India’s biggest Fast Moving Consumer Goods Firm. On any given day, nine out of ten Indian households use products of them to feel good, look good and get more out of life – giving us a unique chance to shape a brighter future. With over 35 brands straddling 20 distinct groups such as shampoos, cosmetics, tea, coffee, soaps, skin care, toothpastes, detergents, water purifiers, packaged foods, deodorants, ice cream, the Fir m is a part of the everyday life of millions of customers from corner to corner in India.

STRENGTHS:

• global tracks with operations in more than 190 countries
• top of the mind memory Brand Recall among customers
• intense portfolio with expanded product range
• heavily financed research and development initiatives
• expertise in distribution channels
• the accurate combination of global and local strategies

WEAKNESS:

• imitable products
• huge dependency on retailers
• limited business modification
• availability of substitutes and low switching cost
• Inadequate management of brands
• Fall in profits
• No direct linking with client

OPPORTUNITIES:

• developing economies demand more
• increasing demand for health conscious products
• millennial generation and their lifestyle requirements
• put social media to use for advertising

THREATS:

• growing popularity of privates label brands
• hard competitors like Nestle
• products are imitable
• rising popularity of Ayurveda products

CONCLUSION

A truthful acknowledgement of the weaknesses and threats that exist for your determination is the first step to contradicting them with a healthy and creative set of strengths and opportunities. A SWOT analysis recognizes your strengths, weaknesses, opportunities and threats to support you in making strategic plans and decisions.

SWOT is a simple yet complete way of evaluating the positive and negative forces within and without your society, so you can be better organised to act efficiently. The more investors you comprise in preparing the SWOT, the more appreciated your analysis will be.

It reminds you to:

• construct on your strengths
• minimalize your weaknesses
• grab opportunities
• counter threats

A SWOT analysis will be most useful if you use it to support the vision, mission, and objectives you have already defined. The SWOT will at least provide viewpoint, and at best will reveal contacts and areas for action.

Personal SWOT Analysis

Introduction

According to Kolb (1984), “learning is the process whereby knowledge is created through the transformation of experience. Knowledge results from the combination of grasping experience and transforming it.”

The process of developing my own SWOT analysis (Appendix 2) provides an understanding of where I am and what I have to do to progress both academically and professionally. It aims for the definition of goals for future careers and the establishment of specific, measurable, achievable, realistic and time-limited objectives (SMART). My SWOT analysis and action plan (Appendix 1) is to get me on the right path; in the future, it may be necessary to achieve the targets that have been identified for the success of pay success and career development. It is therefore important for me to engage in a workable action plan.

With regard to my performance, I realized that I measure performance far more broadly than the grades I have received so far during my assignments and exam. Much of what I have learned at University has been learning to manage time and commitments and to make sure I maximize the opportunities available to me. These opportunities include the services offered alongside my course, the facilities of the university and the opportunities that come from new friendships. I was happy with my grades and I think I’m on track, I’m hoping to receive helpful feedback from my tutors to help me make further progress with my degree.

The more satisfying feeling was that I had to contribute something to increase confidence in group situations. This is particularly important to me as I normally do not contribute to group situations but with a desire to achieve managerial / leadership responsibilities within my career this is something I need to develop.

An additional factor in research shows that there is a positive correlation between study participation and success in courses and exams. In my SWOT analysis, what will aid my development at university is to expand my wider reading. By doing so, I will attain better grades in my assignments and exams throughout the course I am currently undertaking. I have also identified broadening my reading as critical as research shows that employers are looking for well-rounded candidates who are open-minded and interested in the world around them.

Conclusion

After I finished my questionnaire about Honey and Mumford learning styles, it became obvious that my favourite style of learning is a’ reflector.’ The description they provide states that reflectors are very careful and thoughtful people who like to consider all possible perspectives and implications before they move forward. Before you commit, you like to stand up and evaluate past experiences. In carrying out this SWOT Analytics and Actions Plan, I identified my weaknesses and looked at what I have to do for a business career in management. By doing a SWOT analysis based on my work experience, I identified my strengths and weaknesses with respect to learning.

Honey and Mumford (1972) identified four learning styles that correlate to each stage of Kolb’s Learning Cycle – Activist, Reflector, Theorist and Pragmatist, Mobbs, D. (2010). Individuals are believed to have a preferred learning style.

Honey and Mumford recommend that your understanding and self-awareness of your preference for learning may maximize your learning experience, improve your learning skills, help you to become an efficient student and open the door to a variety of potential opportunities for learning. They have developed a questionnaire of learning styles that I have completed to learn more.

The exploration of the above-mentioned theory gave me valuable insight on ways to apply myself to the learning cycle in order to achieve my objectives. I have to be aware that as a Reflector who works with an online learning platform with minimal communication interactions, I do not gain the guidance and reassurance I seek to move forward, and I will have the need to work on my activist features to ensure that I do not have any real reassurance about the challenge.

Tesco SWOT Analysis

Introduction:

This is a swot analysis of the retail commercial enterprise Tesco, This evaluation of Tesco will provide records approximately its strengths and weakness, and more records on how Tesco competes in the market. Tesco plays a role in one in all the most important markets within the world and its one among the most a hit retail business inside the global so there will be a lot of inform

Strength Analysis:

This is an analysis of Tesco main strengths in the Market.

Market share: Tesco is the biggest retailing business in the UK owning 30% of the market, among the huge 4 supermarkets; Tesco dominates the grocery retail marketplace of Great Britain. Tesco is moving international huge to dominate the market with it low charge and happy customers.

Global expand: Tesco is thriving all across the globe taking it business to all countries, for example America, North Korea and china. Tesco is determined to stay number 1 and take over the market with its different style of hopping experience.

Large employee base: Tesco also holds one of the largest employee status holding over 800k employee applications. This highlight that Tesco are willing to give all people a chance at jobs. Furthermore, with Tesco having a large employee base, it allows the business to expand more and this allows them to increase their status in the market.

Biggest retailing store in the UK: Tesco holds a great amount of the market here in the UK owning 300%, this allows Tesco to be above their competitors like Asda (walmart) Sainsbury’s and lidle (has the same style as shopping, by keeping the piece cheap). Tesco hold the most sales and revenue over all the other retailing stores in the UK, in lighting its dominance in the retailing business.

Large award status: Tesco has received a lot of awards in the UK and internationally. Due to it’s a success industrial performance, Tesco has achieved several awards. These consist of British’s Favourite Supermarket (amongst the large four), The Grocer of the Year, and Best Grocer Award (in 2018).

Product sales: Tesco has got the most profit from its sales in the UK holding number 1 in revenue. They make their customer’s proud and happy by giving cheap products at different verity’s to win over the clients. The History that Tesco has had with its customer’s goes far back to ‘Cohan’ who gave the best at the least price.

Diversified marketplace and product range: Tesco diversification method has tested to be quite a hit for the company. It has apparel range, home-ware items, cell telephones business, tune downloads and DVD rentals, school uniforms, economic and telecom services, and cotton fair-trading across the globe.

New and Advanced Technology: Tesco uses generation in the satisfactory optimal manner to enhance the shopping revel in of its customers. It has introduced a brand new enabled barcode machine to count the goods automatically.

Weakness Analysis:

This is an analysis of Tesco biggest weaknesses in the retailing industry

Failed expanding processes: Tesco ha come across a few problems in expanding worldwide, in 2012 Tesco had to leave multiple markets like America and japan, because of it failed export forced the company to close down in both country. With this Tesco had to thrive in its proceed and I now back in the American market. With japan Tesco has not made a comeback till this day and maybe this will change in the future.

Tesco charged with fraud: in 2017 Tesco was charged with fraud this made a lot of clients confused and unhappy, this was a huge backlash to Tesco and hurt its brand. However Tesco determination to reform and fix their brand has made them number 1 in the UK.

Club card controversy: In 2018, Tesco switched up its Club card scheme (in which points will be doubled or tripled) without giving prior observe to customers. It faced a massive backlash from angry customers. Tesco started to lose a good amount of sales as customers was very unhappy with what was going on with Tesco’s club cards.

Decrease in operating profits: in Oct 2018, the proportion charges of Tesco fell extra than 9% due to the decline in working profits. It has proved to be the worst performance for the organization since the Brexit Referendum.

Poor performance in certain markets: Few shops and grocery retailers of Tesco are not performing nicely in sure countries. Experts endorse that Tesco didn’t deliver out sufficient market research before stepping into these markets.

Products loss: Consumers won’t be shopping for as many objects associated with having much less disposable earnings and the store has no longer adjusted its stock and selection, leaving it with a high price of stock.

Opportunities Analysis:

This is an analysis of Tesco opportunities in the retailing industry

Growth worldwide: evidence advocate TESCO is the one of largest global grocer which suggests a degree of buying strength to make certain mainstream economies of scale. With more strength Tesco will have the ability to invest more in its business to take over more amount of the global market and become the biggest global retailing industry business sin the world.

Investing more Jacks supermarket: Tesco has recently invested Jacks, a brand new discount shop which has shown good sized growth in the past time it has been open. It has a possibility to grow this enterprise and can successfully compete as a low-cost rival. Tesco has a chance to invest a lot in jacks and watch it grow so Tesco has the ability to take over more of the market with other business tailing on for more investment opportunities.

Tesco Tech: The development of Tesco Direct thru on-line and catalogue buying will grow using technology, supplying the launch pad for larger non-food primarily based products with mild to high margin returns and much less recognition on sales and margin in line with foot go back to space. With this deployment the chances of Tesco holding much more revenue and making more profit is high.

Emerging markets: Although Tesco has stores in many growing countries however expanding its commercial enterprise to rising countries like South Korea, and extra Asian countries may be a profitable possibility for the company. This gives the chance for Tesco to expand much further global for more chance at the global market.

Threats Analysis:

This is an analysis of Tesco threats and other sort of disturbance in the retailing industry

Brexit Referendum: With Britain (2018-2020) now not in the European Union, the trade offers and cost subjects have posed a danger for Tesco. With some trade offer not going the Tesco way could but the company revenue to decrees and this can look bad for the business

Price: Food costs are on the rise across the world, which also reduces what consumers can buy and how much disposable income they have available. With customer unable to buy product this may look bad on Tesco, as the business is known for their low prices. So if the clients are unable to buy product, they will think the whole message of “Every little helps” is a lie. This could look very bad for the company.

Competition with supermarket giants: With rising boom and overall performance of WalMart (with ASDA acquisition), Carrefour, and Aldi, Tesco’s largest competitors, Tesco’s market position can be threatened. With all these supermarkets trying to take number #1, this could cause tension in the market.

Rivalry: For TESCO there may be a persistent danger of takeover from the marketplace chief Wal-Mart who has each method and reason to pursue such action. With these two big supermarket powerhouses this could put a ton of pressure on both of them. As one is trying to get above the other in the market any of these powerhouses in the retail industry can make a mistake.

Evaluation of Strategic Decision in Zara Company by Using the Theory of Pest, Swot, Market Segmentations and Positioning

Political Forces

Government: An organization must be able to consider issues such as how stable the political environment is and what government regulations influence the policies that regulate or tax the firm. Zara having a global presence, they must take this into account when entering a new market.

Zara is a Spanish brand, so it enjoys all of the benefits of operating a business out of the European Union. In a political context, one of the biggest pros of running a company in the EU is the country’s extensive trade agreements. Not only does this make it incredibly easy to import raw materials and export finished products within the European Union, but it also means that Zara can send its merchandise across the world with little effort and for a low cost. Overall, the EU’s free-trade policies are massively beneficial for Zara; let’s just hope the Union continues to thrive!One of the biggest environments that can cause you to alter your products, ads, or even your overall brand perception is a country’s political views. While we like to think of the Internet as a global space, the social media and search engine platforms popular in your local market may not be the same as another country. For example, Facebook has been blocked in Iran, Vietnam, and North Korea. Twitter is currently banned in several other countries. This means if you’re a business using Facebook in these areas, you cannot use these advertising options and it is less likely that your target audience can see your updates. It also means you need to consider local alternatives, for example, Sina Weibo in China and Facenama in Iran and Afghanistan.

Economic Forces

As mentioned previously, Zara is a Spanish brand. Since Spain has one of the highest unemployment rates within Europe, this means that it has a relatively low cost of labor especially in comparison to other Western European countries, such as France, Germany, and the United Kingdom. Zara manufactures a good fraction of its products in Spain, so this low labor cost allows them to minimize costs and, in doing so, improve profitability. Again, the low cost of labor in Spain is definitely a positive for this brand!

Zara is a well-recognized brand, so those less familiar with its products might think they’re quite expensive. On the contrary, Zara is considered a relatively affordable brand in comparison to other European high street fashion names. This allows the company to thrive even in poorer countries; for example, despite Spain’s slow economy, Zara is still one of the most popular clothing brands in the country. Indeed, Zara has some more expensive products, but what’s most important is that it can cater to the majority of shoppers with the rest of its clothing lineup.

Recession: Inditex sales in Spain in 2019 accounted for 25%, which was 6.8% less than in 2018 (Inditex annual report). However, thanks to its global presence, the firm has been able to offset the slow-down in Spain (El País, 2019). The Span-ish company is increasingly aiming at the global market because of stagnant results in its mother country due to the heavy re-cession in Spain. Price: Differences in prices between establishments of the same brand from one country to another and the likely response of local customers, for example Zara Japan and Zara Spain.

Sociological Forces

Despite its affordability, Zara is a fashionable name for most shoppers. This is where you can only praise the company for its hard work. Zara delivers a good-quality product for not a lot of money. And thanks to the brand’s clever marketing efforts, it feels rather exclusive for buyers. Overall, this strong, positive brand presence allows Zara to collect healthy profit margins for its shareholders, while buyers still feel like they’re getting a great deal.

There’s no doubt that online shopping is a major trend in the 21st century. Although clothes shopping might not be the best fit for the web, consumers now want to order their garments with the tap of a button, and from the comfort of their own homes. This isn’t necessarily a bad thing for Zara, since they already have a popular web shop. However, Zara will have to pay close attention to the performance of its online store, since consumer’s preferred channels are definitely changing.

Zara being a global brand, it operates in countries with strong cultural and style differences. Socio-cultural factors are extremely important when entering a foreign market. For example, people in Bangladesh do not change their ward-robe too often and a strong preference for bright colors dominates, as opposed to blacks and whites, more worn in China.

Technological Forces

Zara is one of many brands looking to use technology to expand its reach. As one of the world’s most popular fashion retailers, the company has both the money and the audience needed to get the most out of data. As a result, Zara is looking to big data the study of analyzing huge data sets to find better ways to reach and appeal to consumers. With both online and in-person customer touch points, this isn’t a straightforward task. But if Zara can pull off some successful data analysis, you bet they’ll be able to propel their powerful business even further. Social media: Having a presence in social networks such as Twitter or Facebook allows access to live information involving the consumer and making him/her feel more connected to the brand.

Online presence: Zara.com has become one of the brand’s most popular storefronts thanks to their permanent sections such as Look book, where the latest of the chain’s articles are shown, or People!, an initiative in collaboration with the customers, who send photos of their own fashion displays from the latest Zara trends (Inditex, 2018). This involves the customer emotionally and creates a more interactive way of shopping.

New technologies: Information and communications technology is at the heart of Zara’s business. Information on customer needs and demands flows daily and is fed into a data.

Legal Forces

Like all of us, Zara has to operate within the bounds of the law. For all fashion brands, copyright law is one of the scariest legal branches out there. Since Zara loves capturing hot clothing trends and making them more affordable, it’s bound to run into some issues with copyright. In fact, the major retailer already has. It’s been accused of stealing designs and clothing concepts from the likes of Adidas and Balenciaga. In past cases, Zara has largely been able to weave itself out of uncomfortable legal situations like these, but who knows if the behemoth brand will continue to have such good luck.

Plagiarism: High street retail-ers create affordable garments in-spired from the catwalk and luxury, brands. However this is sometimes a concern for the latter. Zara was sued in 2008 by Louboutin for sell-ing an open-toed red-soled shoe which it claimed was similar to its Yo Yo model (Retail Week, 2012) •Sweatshops: In August 2011 Zara was accused of sweatshop facto-ry conditions and the employing an underage worker (The Guardian, 2011). This might have an extremely negative impact in the brand’s image.

Strengths in the SWOT analysis of Zara

Unique designs – One of the first and foremost advantages of Zara lies in its design abilities. It has a plethora of designers on board who understand the Zara brand and the psyche of the customers who visit Zara very well. The clothes are elegant, superior quality and have fantastic finishing. They come in a lot of varieties including party wear, office wear, for kids, for men and women, casuals as well as several others. Even accessories are an integral part of Zara wear.

Strong presence Zara has kept expanding its presence across the globe. On latest count in 2015, it had 2100 stores worldwide with an average sale of 15.9 Billion per annum. In 2016, it has expanded even further. If it has to survive in retail, Zara has to keep expanding its presence and it is good to know that the brand is doing exactly that.

Brand value the brand is ranked number 53 by Forbes in its brand ranking and is valued at a whopping 10.7 Billion dollars. There are several positive points leading to the excellent brand equity of Zara. The performance over the years and the consistent quality it has provided has given a boost to the brand in recent years. Besides this, the brand has stayed away from controversies and tried to stay humble even when it came across them. Such a healthy culture has resulted in the brand being loved by its consumers over and over again.

Superb supply chain – Zara is known to get its designs from conception to the stores in 2 weeks whereas it takes other competitors minimum 6 weeks or more, automatically making Zara the trendiest store which has the latest in fashion. On an average, 450 million items are designed every year by Zara. This naturally pushes the consumers to visit the store again and again to check out the latest designs.

Design advantage – Zara has the reputation of launching 1000’s of new designs every year across the globe. As a result, a customer who might visit other stores twice or thrice a year to check out the latest in fashion, might have to visit Zara every month to see whats new in Zara. Because of their strong design advantage, the customer keeps buying fashion forward clothing from Zara besides purchasing the basics from the brand as well. Some customers dedicate their complete wardrobe to Zara clothing. All of Zara’s designs are elegant yet trendy, and are loved by their customers.

Low cost and higher profits – Because of their design advantage and fantastic physical evidence in stores, Zara rarely advertises its products. It relies completely on its trendy image to pull the customers to its stores. This is the reason that Zara has very low cost of operations and at the same time has high margins. It spends most of its earnings and profits on backward integration and on supply chain rather than spending it on Advertising.

Physical evidence of stores – Another strong positive of Zara is that the service has very good physical evidence of the stores. Whenever you walk into the store, you will get this open minded feeling instead of feeling cramped like you do in other showrooms. Zara uses a wide and deep store layout so that customers would love to walk around the store while picking up and trying out their favorite designs

Weaknesses in the SWOT analysis of Zara

Generalized collection – Zara does not specialize in anything and has everything for everyone. One of the reasons that a customer shifts to a competitor is when the competitor is focused on one thing. It might be shirts, it might be pants, it might be dresses or party wear or whatever. Such immediate focus is lacking in Zara and it is good for the day to day wear or trendy wear.

Lack of advertising – While it may lead to a cost advantage and cost is one of the strengths of Zara, the lack of advertising is a weakness because the brand can double its profit and its turnover by advertising its collection. It is known to be a trendy fashion outlet and it can easily pull in more customers with advertising which will generate a lot of positive word of mouth for the brand.

Low safety stock – A regret which Zara stores have is that stocks which are fast moving rarely have a safety buffer behind it. Low inventory is kept at Zara as a strategy to keep customers walking into the stores to check out the latest items. But it also means that if a particular design is a hit with the customers, it won’t reach its potential because there is no safety stock or buffer for this design.

Opportunities in the SWOT analysis of Zara

Online E-commerce Zara can definitely take advantage of the online buying trend and make its clothes available not only in its own stores but also on other E-commerce stores as well thereby bringing a hike in sale.

Backing some flagship designs – One of the common traits of top brands is that they have some designs which are flagship designs of their stores. This is lacking in Zara and hence, there should be some designs which should always be sold from a Zara store, bringing in great demand for these designs and building even more brand identity for the brand.

Growing market potential – Wherever Zara is currently existing, he brand is becoming more and more popular, thereby resulting in growing market potential. A rise in earning potential of consumers results in rise in demand for status symbols. Zara is one such status symbol in clothing industry which consumers love to wear. Hence, Zara needs to capitalize on the growing market potential of existing markets.

Market expansion – New markets will always give new business and potentially profitable business to Zara. It needs to keep a constant eye on emerging markets, where the spending power is rising and where people can spend on a semi premium brand like Zara so that they can wear better and more stylish clothing. Such market expansion insures the clothing brand against saturation in developed countries where the competition is too high.

Threats in the SWOT analysis of Zara

Low advertising – Zara needs to ask this question to itself. Looking back, will Zara think that it made a mistake by not advertising its unique brand proposition from the start? The way that Zara keeps rotating design, it can rope in a lot more consumers if it advertises the fact that you will get the latest in designs from Zara. But maybe, if its consumer base increases tremendously, coming up with new designs and differentiating itself will become more and more difficult. So, the debate of whether Zara should advertising or not, will be going on in the management room of Zara itself.

Competition – Zara is not the only one which is known for its chic design. Vero moda,H & M and Mango are also loved for its design. But the advantage to Zara is that the other brands are quite costly when compared to Zara whereas Zara gives much better designs at affordable prices. However, this competition leads to saturation in the semi premium segment indirectly affecting the margins.

Reach – Zara needs to increase its reach tremendously. Zara operates exclusively through its own stories and does not have shop in shop kind of stores or smaller displays (at least in Asia). This is where the competition gets its tremendous volumes from. But these volumes are missing in Zara and the only answer to this is that Zara increase its reach. If it does not, then competitors will eventually affect the brand equity of Zara because of their sheer power of penetration.

Here is Market Segmentation of Zara

Zara seems to have a wide range of target markets, from kids to teenagers to women and men. However, the core customer tends to be a wom-an aged between 15 and 35. A typical Zara customer is a person that wants fashionable, trendy and unique outfits at af-fordable prices. As Zara has its origins in Spain and is primarily a China fashion brand, its consumers are also heavily. Influenced and moved by Chinese fashion. Aside from that, the customer may belong to any social stratum or demo-graphic segment as Zara caters to a wide range of tastes. The market segmentation strategy employed by the brand is based on the demographic and psychographic variables like gender, age, generation, lifestyle and social aspirations. However, aside from this the company also targets customers based on their sense of fashion and style e.g., contemporary, trendy, classic, etc.

The brand uses a differentiated market strategy as it aims to target various segments. Zara situates its stores in high profile locations and provides customers with a turnover time of 4-5 weeks for its new col-lections, made available at very affordable prices. This, along with the brand identity, the clothes and accessories collection and the limited production run, attracts the target markets to Zara stores. The average Zara customer visits the store 17 times per year, compared with only three annual visits made to competitors (Gallaugher, 2008).

Here is Marketing Positioning in Zara Company

For a clothing brand like Zara, the brand positioning is very important. The positioning for Zara in the fashion industry is ‘affordable fast fashion’ and positioned to a universal consumer market. Zara has become a world-class brand, but the success of Zara does not rely on the named designers to create classical or popular, however, it’s due to a close relationship of Zara’s brand positioning to “fast fashion.” Through the rapid imitation strategy, emphasis on the fast design, fast production, and quick sale and with the fastest speed in response to the market demand, as the representative of fast fashion. Zara’s target audience is aged between 20-35 years, as these consumers are more sensitive to fashion, but do not have the ability to buy the designer brands. Therefore, in order to meet consumers’ demand for this customer base, thus, Zara creates a fast fashion model and it is a great success under current market trends.

Ries and Trout (1981) were the first to coin the term ‘positioning’. This had no relation with the products, services or organizations, but all related to the ability to command a position in consumers’ minds, distinct from the competition. Caperer (1997) argues that positioning is a way of emphasizing the distinctive characteristics of the brand that makes it stand out from its competitors and is appealing to the public. Gelder (2003) defines brand positioning as a way to demonstrate a brand’s distinction and competitive advantage over competitors. Brand positioning is a rather functional affair, with an emphasis on product and service features, benefits, usage, value and ability to solve problems for consumers. Aaker (1996) defines a brand position as the part of the brand identity and value proposition that is to be actively communicated to the target audience to highlight an advantage over competing brands.

Tesla Strengths and Weaknesses

“Tesla Motors is unique because it is not merely selling cars but also selling new technologies” (enter source). One of the greatest strengths that Tesla has to offer is that they deal with two of the largest markets: premium luxury cars and eco-friendly electric cars. Tesla stands above their luxury car competitors due to their advantage of being more cost effective in usage because they do not run on gasoline. The price of gasoline continuously increases each and every single day which consumers take into consideration when buying a vehicle. In comparison to other electric vehicles, Tesla is known to have longer-range battery life which allow drivers to travel further without having to stop. As consumers are becoming more aware of their ecological footprint, the demand for a more eco-friendly vehicle is also increasing. Tesla Motors uses this to their advantage to expand their market by making a more cost effective electric vehicle.

Tesla has a brand reputation of being one of the more innovative electric vehicles. They strive to make their vehicles not only functional but tech savvy as well. “Our first product was going to be expensive no matter what it looked like, so we decided to build a sports car, as that seemed like it had the best chance of being competitive with its gasoline alternatives” (Zucchi, 2019). Tesla built their reputation based on having high quality and high valued vehicles, which resulted in consumers having faith in their products. Tesla continues to be able to grow by introducing new models by lowering the prices so that they are able to compete with the markets in which they want to enter.

Tesla keeps their inventory in their showrooms and dealerships to a minimum which makes them unique in comparison to their competitors. Their showrooms typically only include one vehicle of each model which allows them to decrease their costs by protecting themselves from high risks such as damage to inventory and theft. Tesla’s strategy on distribution allows consumers to cater to their specific needs by giving them the opportunity to customize their vehicle. Their main focus is to get consumers to purchase their vehicles online. They offer a 7 day or 1000 miles return policy, which gives consumers peace of mind and makes them more receptive to the idea of purchasing online. It is a great strategy for the company because they are able to expand their markets by reaching more consumers while increasing their profit margins by decreasing labour costs and maintaining fewer locations. In addition, consumers that shop online are less likely to return items versus consumers who shop in person due to the inconvenience of having to ship the product.

“During the quarter, a majority of orders continued to be for a long-range battery option and the Model 3 average selling price (ASP) was stable at approximately $50,000. At the same time, manufacturing costs continued to decline. The production rate of Model 3 continued to improve gradually throughout the quarter, breaking a monthly record in May and then again in June” (source). The manufacturing costs lowering while prices stayed perfectly inelastic gives Tesla a better profit margin. It gives them the power to lower prices while still creating profit. The strategy of creating the model 3 was to create a “no frills” price that gave consumers the choice to add in the extras depending on their own personal purchasing power. This is a pricing strategy that allows them to market it as a “cheaper” luxury vehicle, as the starting price is lower.

The main advantage of Tesla Motors is its management. Their background knowledge in technology, engineering and manufacturing has given them a product differentiation competitive advantage. “The Model S can wirelessly upload data so technicians can view and fix some problems online without ever needing to physically touch the car’ (Zucchi, 2019). As a technology based vehicle they are able to update and service their cars remotely, and easily communicate with all Tesla owners with dashboard messages. “Tesla has created its own network of Supercharger stations, places where drivers can fully charge their Tesla vehicles in about 30 minutes for free” (Zucchi, 2019). Tesla drivers will be able to charge at all electric charging stations in addition to the supercharger stations, whereas the competing electric vehicles are constricted to the basic charging stations.

Weaknesses

This paints a flattering picture of the Tesla but the company is not without vulnerabilities; for example, it has yet to post an annual profit. Stakeholders saw hope at the end of 2018 when the company produced a net income for the last two consecutive quarters (2019, O’Kane); however, in Q1 and Q2 of 2019, it has seen even greater losses despite the fact that its total unit sales, production and delivery are better than ever (though still short of their targets). The greatest factor is the rise in sales of the Model 3—the margins for the Model 3 are significantly lower than on those for the Models S and X. Shifting attention and resources away from its high-margin products has endangered the company’s bottom line and puts into question whether the Model 3 is a worthwhile pursuit (DeBord, 2019a).

Adding to Tesla’s list of pain points, the company does not focus on advertising in the traditional sense—in fact, they famously have a $0 advertising budget as Musk prefers to allocate these finds towards ameliorating his products (Koetsier, 2019). Instead, the company relies on its strong brand identity to produce referrals, word-of-mouth, and organic social media and traditional media coverage (Bhasin, 2019), but is unlikely enough to sustain sales for the mass market given that their sales revenue has been falling short so far in 2019 (Koetsier, 2019). There is a limited life-span for such a strategy; as CEO of C3 Metrics Jeff Greenfield explains “You got the first phase of early adopters. But it’s no longer that first tier that you’re interested in. They don’t have a choice. They have to advertise” (Isidore, 2019). Musk himself has identified that “Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world’s factories every day” (Musk, 2014, para. 6). And yet Tesla’s promotional visibility where its competitors are already established limited.

Tesla has struggled with manufacturing its vehicles from the start, a surprise to veterans of the auto industry given that the industry as a whole has refined its practices over the course of decades (Debord, 2019b). At one point in time, demand was significantly exceeding supply, and customers needed to wait anywhere from months to years to receive their order (Isidore, 2019). Tesla CEO Elon Musk, goes so far as to label this “production hell” (Debord, 2019b). The introduction of the Model 3 compounded these challenges as it meant a significant increase in Tesla’s production capacity. In an attempt to optimize efficiency, the company built an automated assembly line that failed disastrously due to the limitations of the robots performing the assembly (DeBord, 2019a). In addition, the company would perform experiments on the live assembly line to discover such aforementioned limitations, essentially breaking machinery. Finally, in order to amplify production, a tent was erected in the parking lot and humans were added back into the production equation to make up for the robots’ shortcomings (Boudette, 2019). If Tesla plans to sell the Model 3 to the mass market, it is first going to have to prove that it can produce for the mass market.

Opportunities

There are multiple opportunities that Tesla could take advantage of to get ahead of its competitors. One such opportunity lies in economic markets. An article on Evannex.com states that “China sales of EVs grew 60% last year” (Pressman, 2019). The Asian market presents strong market growth opportunity for Tesla and the company has already started capitalizing on this potential with the construction of a new Tesla Gigafactory in Shanghai, with completion scheduled for the end of this year (Blanco, 2019). China is also paramount to the success of Tesla’s global strategy since the government has set ambitious targets for EV sales (Gardner, 2019). Additionally, “some 24 European countries accounting for 62 million people are banning diesels over the next decade” (Behrmann, 2019) thereby restricting consumer options to hybrid and electric cars and creating enormous growth potential for Tesla to expand further into Eurasian markets with its lower-cost Model 3, as more people are forced to turn towards EVs when making their purchase decisions.

Previously, one of the major hindrances to a long-lived battery in an electric vehicle was its sheer cost. That is changing however, as numerous countries look to invest in their lithium-mining operations (lithium is an integral component in battery manufacturing), with the market for lithium reaching a potential value of US$20 billion by 2025 (Stringer and Lombrana, 2019). Tesla can take advantage of the increased supply through its Gigafactory production, which accounts for 60% of all lithium-ion batteries in the world (O’Kane, 2018). Therein lies the opportunity for control of the battery market via cost reduction and means of production for Tesla, giving them the opportunity to further reduce the cost of the Model 3.

Because Tesla does not spend much on advertising, it relies upon its CEO, Elon Musk, to promote the company through Musk’s personal Twitter account. This unconventional strategy appears to have paid off, with Tesla being the number one most discussed auto manufacturer on social media (Folschette, 2019). With so many countries moving towards green energy and prohibiting fossil fuel powered vehicles, the opportunity for Tesla to utilize Musk’s brand as a pioneer and visionary with inventions aimed at combating climate change is immense.

In the market for luxury cars in Canada, Tesla has 3.3% of company shares. Daimler AG (Mercedes-Benz) leads with 27.4% of company shares. After that, Volkswagen has 23%, Bayerische has 22%, Toyota has 13.7%, and Tata Motors has 8.8% (“Luxury Cars in Canada,” 2019). This information shows that Tesla’s competition is with cars that use gas. An opportunity for Tesla is to create a broader variety of Tesla cars with different price points to pursue their competitors’ customers. Mercedes has 30 models, with its price range from a $34990 CAD Sudan to a $209000 CAD Maybach (“All Vehicles / Mercedes Benz”, n.d.). Tesla has 3 models, but if they were to create a diverse set of price points for each model (Sudan, coupe, roadster) they can cater to more consumer attitudes towards car purchases. Also, varying each model with differing interior design quality, power, speed, additional technology, and other qualities would help entice people to switch from competitors to Tesla. Having a low cost mass market option is important for millennials and generation X consumers, as having the prestige of a Benz or BMW with an affordable price is what they would look for, and if Tesla were to have one that can compete with its quality (materials, lush interior, etc.) then the fact that it is fully electric would convince buyers to choose Tesla over other brands.

Threats

For Tesla to enter the mass market with their Model 3, there are many threats they need to consider. These threats include the competitors, regulations, the economy, society, and technology.

The main competitors Tesla has in this market are aggressive with creating what consumers want whether it is fully electric vehicles or plug-in hybrids. In the industry, Tesla currently faces off with well known luxury brands including: Mercedes, Audi, Lexus, and BMW. When entering the lower end economy market, the big names they will compete with are companies like Hyundai, Kia, Toyota and Nissan. These brands are already well established in the electric vehicle industry with each their own known models like the Kia Soul and Optima, the Nissan Leaf, the Hyundai Ioniq, and the Toyota Prius. In regards to the market of electric vehicles, these companies make up the majority of the market in the lower end along with Ford and Chevrolet. Along with Ford and Chevrolet, these companies made up for 26.07% of electric vehicles sold in 2018 (Mcdonald, 2018). While the other vehicles sold were high end luxury vehicles. Although these vehicles may not be up to the technological standards like Tesla, they still perform as well and are zero emission vehicles.

There are many regulations that are threats to Tesla entering this market as well. One of the regulations includes a 5 million liability needed for a drivers insurance when using the technology in the vehicle like the full autopilot mode (Ministry, 2013). While companies like TD Insurance can offer discounts for electric vehicles, consumers will still need to make the change due to this regulation. On top of discounts, Canada offers a zero emission vehicle incentive program for owners of certain electric vehicles. This program lets you submit claims online for payment through this program for fighting climate change and purchasing or leasing a zero emission vehicle. It would be directly applied on your bill of sale or lease agreement but as of right now in Canada, there are limited models of vehicles listed in this program. Not until May 1st of 2019, the Tesla Model 3 was not listed on this program and as of right now they still do not have any other Tesla models like the Model S, X, or Y. If Tesla were to enter the lower end market, the vehicle would go through the process of being added and the incentives would be much lower compared to the current Model 3 to be relevant with Nissan, Kia, and other companies in the lower end market (Transport, 2019). Politically, Tesla has been involved in reaching out to the Chinese market with their new gigafactory that was built to increase their sales and lower their costs. With China’s increase in demand for electric vehicles, this was a good move by Tesla. As of right now, with the protests of Hong Kong and the ongoing trade war between China and the US, US companies with ties with China are sometimes brought under fire by people in support for Hong Kong. An example of this would be either through athlete Lebron James. As Lebron was interviewed and defended China, many people were upset with him and wanted to boycott both him and his brands like Nike. From Nike’s perspective it is clear why they have their athletes not talk in support of Hong Kong because of how large the market is in China and many companies have followed.

The Price points these vehicles in the lower end market can begin from around $37,000 for the Hyundai Ioniq, and about $40,000 for the Nissan Leaf and Kia Soul. While these are more common economy prices, the Tesla Model 3 as of right now begins at a low of $55,000 up to $75,000 depending on the specifications on the vehicle (Tesla, 2019). While Tesla tries to make the vehicle cheaper for the consumer to enter the lower end market, even at the base of the vehicle, it is still at a high $55,000 which keeps it in the luxury market. In the economy as well, gas prices can threaten Tesla’s move into the market as right in September of 2019, it is projected that gas prices will fall continuously through the months from the peak of 1.03 USD/L this past April. This will play a factor in consumers planning to buy regular gas run vehicles over electric vehicles. (Trading, 2019)

Society is also a threat to Tesla as the Model 3 only comes in the fully electric version it is in. While this may not be an issue to some drivers, others prefer hybrids over fully electric vehicles (DeMuro, 2019). With hybrid vehicles, there are many advantages in comparison to fully electric vehicles due to society not being used to electric vehicles yet. As you travel around, most likely plug in stations are located in high population areas so a vehicle that also runs on gasoline as a backup is a feature consumers look for. This is why they choose to buy hybrid vehicles. Hybrids are more reliable on longer commutes and when travelling as your range increases by hundreds of kilometres because of the gas engine (DeMuro, 2019).

Actionable Strategies

1. To Mitigate Threats. In regards to the competitors, Tesla is already the top selling company when it comes to EVs. A lower end model 3 would sell as well. They have their brand built.
2. Regulations. Would be added to the iZEV program, if a lower end has less technology, the 5 million liability would not be needed. Incentives by government can cover the increase to 5 million as well.
3. Social. For the far commuters etc, longer ranges on their engines, more plug in stations.

While challenging, it is in Tesla’s best interest to continue selling and manufacturing its Model 3. Tesla’s primary objective has always been to get more electric vehicles on the road by producing affordable cars that would be heavily supported by the sale of luxury ones. The major hurdles that have been holding them back. The sales of Model S and Model X has decreased and so profits have suffered given that the margin on the Model 3 is significantly lower.In order for the Model 3 to be profitable in itself, Tesla needs to be able to both stimulate demand and increase the efficiency and speed of manufacturing. In order to address these challenges, the company might consider the following. The Model S and Model X have not seen a redesign since their respective launches in 2012 and 2015, and in order for Tesla to stand a chance at sustainably achieving their goal to get more electric vehicles on the roads, they must turn their attention back to the promotion of their luxury products in order to support their lower-margin Model 3 and eventual Model Y (DeBord, 2019a).

Given that the company’s major competitors are advertising on a series of platforms where Tesla is absent, the company can turn its attention to promotion here in hopes to better stimulate their sales. In 2018, an estimated US $9.3B was spent on advertising by automobile manufacturers and dealers and it is in Tesla’s best interest to follow suit to avoid placing themselves at a competitive disadvantage (Isidore, 2019).

Just because Tesla has not achieved the level of automation as it had once strived for, that does not mean they cannot or will not. The company’s major hurdle when it comes to automating production lies in the fact that many tasks require a machine to adapt to variable conditions such as an auto part that finds itself in an orientation that is slightly askew. Given the steady advances we are collectively making in machine learning, this will likely be addressed in future. (Kottenstette, 2019)

The SWOT Analysis of Toyota Motor Corporation

Toyota Motor Corporation tends to the inward and outer key factors in the business, as distinguished in this SWOT analysis. The SWOT structure pinpoints the most critical chances, dangers, and hierarchical shortcomings that Toyota must address utilizing its qualities. As a worldwide pioneer in the car business, Toyota viably addresses such factors. This SWOT analysis gives bits of knowledge about the potential effects on the organization’s the same old thing. Toyota’s elite fills in as a marker of its capacity to address the issues counted in this SWOT analysis.

SWOT analysis

Strengths

So far, Toyota has been one of the strongest automotive brand worldwide, this company has three main strengths that have helped it to succeed in the past decades. First off, Toyota with the new Camry have developing a strong Brand Image, which in the marketing field is essential to have a good expectative when you are releasing a product (Ferguson, 2017). Mostly all customer makes a buying decision on base of the brand and the experiences or interaction that they had had with it.

Second off, the Global Supply Chain is very effective for this product, Toyota had worked diligently over many years to remove slack from its supply operations by using just-in-time parts delivery to keep inventories to a minimum (Deloitteeditor, 2014).

Finally, the Rapid Innovation Capabilities and the Toyota Camry is a perfect example of this strength, this car has been in the market for decades and they have make new technological and safety updates, which makes the customers being more interested of the new releases and as a company, they satisfied their expectations.

Weaknesses

Toyota’s main weaknesses are as follows: Hierarchical organizational structure, Secrecy in organizational culture, effects of product recalls in recent years (Ferguson, 2017).

Toyota’s Hierarchical organizational structure averts greatest adaptability of provincial activities. Likewise, the company’s culture of secrecy is a shortcoming that diminishes reaction times in tending to developing issues. What’s more, Toyota executed enormous item began in 2009. These reviews debilitate the firm on the grounds that the review forms expend business limit that could be utilized for item conveyance. This piece of the SWOT analysis shows that Toyota could improve its presentation through acclimations to decrease the weaknesses dependent on its authoritative structure and culture.

Opportunity

Creating markets present the opportunity for Toyota to expand incomes by further infiltrating these business sectors. Likewise, the present patterns of expanding request and enthusiasm for higher eco-friendliness and propelled gadgets present the opportunity for Toyota to concentrate its advancement on these bearings. Likewise, the more fragile Japanese Yen versus the U.S. Dollar implies higher intensity of items and parts sent out from Japan to the U.S. This piece of the SWOT examination shows that Toyota must underscore advertise infiltration and advancement to abuse its chances.

Threats

Toyota faces the threat of rivalry with ease vehicles from Korean, Chinese and Indian makers, which have been expanding their quality in outside business sectors. Toyota likewise encounters the threat of quick advancement of contenders like GM, Honda, and Portage. This piece of the SWOT examination shows that Toyota must guarantee upper hand, for example, through development.

Ideas Regarding the SWOT Analysis of Toyota Camry Hybrid

In staying sensitive to buyer needs and changing tastes just as explicit neighborhood needs, Toyota could keep on presenting models that fulfill these necessities. There is a chance to develop and venture into these developing markets through procuring other vehicle organizations, which will include piece of the overall industry, showcase knowledge, ledges and resources. To address the threats dependent on rivalry, Toyota needs to amplify its upper hand dependent on its inventive capacities. The organization can likewise additionally alter its way of life and structure to advance its adaptability in basic leadership and critical thinking.

YouTube’s SWOT Analysis

Introduction

YouTube is a free video-sharing website that makes it easy to watch online videos. You can even create and upload your own videos to share with others. Originally created in 2005, YouTube is now one of the most popular sites on the Web, with visitors watching around 6 billion hours of video every month.

YouTube is an American online video-sharing platform headquartered in San Bruno, California. Three former PayPal employees-Chad Hurley, Steve Chen, and Jawed Karim—created the service in February 2005. Google bought the site in November 2006 for US$1.65 billion; YouTube now operates as one of Google’s subsidiaries.

In February 2019, PewDiePie, the most subscribed YouTuber at the time, came under fire for posting videos that YouTube deemed ‘Anti-Semitic’ and ‘hate speech. These videos included references and jokes about Hitler and two Indian men holding a sign stating ‘Death to all Jews’. During this same time videos including, ‘Chief Keef dancing to Alabama N*gger’, and other extremist content, surfaced leading to the UK Government, Coca-Cola, Dr. Pepper, Johnson & Johnson, and many major brands pulling or pausing their advertisements on YouTube.

Methodology:

This document will evaluate how YouTube can cut its losses by losing advertisements from big companies and how it can increase its revenue from within the company. SWOT analysis will be a key tool to figure out where are YouTubes’ opportunities and threats and their strengths and weaknesses. Another key tool will be the fishbone diagram as it will help turn the light on the many causes of this huge revenue loss for YouTube. The research question was changed from “ how did the YouTube ad apocalypse affect YouTube creators” to “ how did the ad apocalypse affect YouTubes revenue” because if I was to stick with the first research question my IA will not be valid since YouTube creators are not one person or a company and it would not have matched the required word count. This document is supported by 4 written articles and the YouTube website. All the data used for this document is secondary research since it was widely available and it shows many viewpoints on the issue.

YouTubes SWOT analysis:

• Strengths

1. Reputations and image: YouTube is the biggest video-sharing website as of 2009. YouTube has over 2 billion users all over the world. YouTube is a very and easy stable website financially and it’s very simple to use hence the huge number of users. Although the market for video sharing platforms is massive and there are many competitors to YouTube the biggest name in that market is YouTube since the launch of the company YouTube has dominated the market.
2. Loyalty: YouTube users are very loyal to the website you can rarely find a user of YouTube that also uses Vimeo because YouTube is the bigger name and YouTube allows anyone that has a YouTube account completely free to upload a video to the site which gathers more people around. YouTube relies on the creators because the creators bring more eyes to the site. YouTube has the biggest creators in the world for example PewDiePie also known as Felix has more than 107 million subscribers (Tuesday, 20 October 2020) so his fans are very loyal to him which leads to them being loyal to YouTube since he only uploads videos to YouTube there are many more examples of this.

• Weaknesses

1. Unreliable: due to the huge number of users the stress is caused by millions of users on the site at the same time the site crashes for a day or two days. (last crash was on December 18, 2019)
2. Everything is public: since anyone can post a video on YouTube and it’s completely free some users steal other users’ content which causes copyright issues. If any user with a big following makes a mistake using a slur word and has children watching their videos all the time this can cause backlash online. YouTube can also cause issues with privacy invasion.
3. YouTube accounts are easily disabled: anyone can report a video or your YouTube channel. And sometimes channels are disabled on baseless claims and this causes the creator to lose out on money since YouTube pays its creators to upload videos on the site.

• Opportunities:

1. Adding new services: YouTube is a free video-sharing website you can upload and watch videos for free but what if YouTube added a paying service that people pay for monthly or yearly and get exclusive content back for paying X amount of money?
2. Paying for music: music artists upload their music videos or lyric videos to YouTube for free and anyone can listen to music free on YouTube as mentioned earlier. YouTube would make more money by adding a section and allowing users to pay to listen to music as they did with “YouTube originals” which is a paying service that YouTube offers. YouTube originals offer tv shows that are exclusively on YouTube since the director of these shows are paid exclusively to work on YouTube. If they implement this idea, they would probably see a huge influx of money.

• Threats:

1. The Facebook threat: Facebook over the past year has come back and is the biggest threat to YouTube at the moment since YouTube has guidelines that you have to follow when uploading a video Facebook has much easier guidelines to follow which makes it easier to upload a video there and not risking it getting taken down and on Facebook, there is a built-in relevance feed so any videos that you have liked for example if you have liked a sports video when you go to your feed more sports videos will be shown to you YouTube doesn’t have that and that’s a big hit on YouTubes side.
2. TikTok’s dominance: TikTok has blown up over the past two years and has over 2.7 billion users and is also a free video-sharing application. Tiktok has a hefty creator funding behind them of over 150 million USD. This attracts many creators to focus on TikTok instead of YouTube since TikTok has the same built-in relevance database that Facebook uses it also attracts people who just want to watch videos on the app without sharing any.

YouTube cause and effect analysis:

At that time the videos surfacing were not monetized and were not put in the guidelines moreover this might show the incompetence of the YouTube staff at that time and how they could not take down a video that had over 200 million views it should have been a very simple action but the video was taken down only after 200 million views which caused a huge backlash online about this as mentioned in the methodology many other videos also made this issue more mainstream media. Another issue that still surfaces from time to time to this day is content that is not age-gated or age-restricted. Many creators have received unfair lawsuits for using slur words or showing explicit content since YouTube has a system in place that is supposed to age-gate those videos but that system has failed and that has shown over the years. “ I upload videos for 18-year-olds my content is very mature and not meant for kids everyone knows this, but I’m still getting these lawsuits from parents of 13 or 14-year-olds who watch my videos it’s not fair, its YouTube mistake and I’m the one losing my money over this” stated Harry from the w2s channel on Twitter. YouTube has not solved this issue to this day and more and more creators are moving to other platforms to upload their content since they are basically only losing money on YouTube because of all these lawsuits and advertisers pulling and pausing their ads on the platform. All of these issues have caused this ad apocalypse which has resulted in YouTube losing out on hundreds of millions in revenue.

Conclusion:

YouTube lost out on an estimated 757 million USD because of the ad apocalypse. The effect was all short-term at that time because YouTube have made their guidelines clearer, and they also fixed many issues with the monetization database and even fired some staff that was incompetent in making those decisions which caused this huge loss for the company, but there are still niggling issues that still surface. There were some limitations to my research since some articles about this issue have been taken down because of lawsuits from YouTube there are many viewpoints on this issue and some articles were all based on lies so it was difficult sometimes finding the right information.