Assignment on Strategic Mgt.

7/29/2019 Assignment on Strategic Mgt.

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Assignment on: SWOT analysis Of Aarong.

Prepared By: Rifat-E-Mansur

Roll: 07882508

STEP 2:

DRAW CONCLUSION CONCERNING THE OVERALL BUSINESS SITUATION:

The Aarong has an attractive set of resource strengths. It has strong core competenceand distinctive competence. The companys strengths and capabilities are wellmatched to the industry key success factors. But it has to add adequate power to its

strategy and need more or different strengths because the companys current

strengths and capabilities may be matter in the future.

The companys weaknesses and competitive deficiencies are serious. These are notinconsequential but readily correctable. So one or more can prove fatal if not

remedied soon. Some of the companys weaknesses in areas are related to the

industrys key success factors. There are many weaknesses that if uncorrected, then

keep the company from pursuing an otherwise attractive opportunity. It hasimportant resource gaps that need to be filled for it to move up in the industry

rankings and /or boost its profitability.

The companys resource strengths and competitive capabilities can lightly outweigh itsresource weaknesses and competitive deficiencies by an attractive margin.

The company has attractive market opportunities that are well suited to its resourcestrengths and competitive capabilities. But the lack of resources and capabilities canpursue any of the most attractive opportunities if corrected.

The threats are alarming for Aarong but there are some special strengths for whichthe company appears able to deal with and defend against the threats.


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Theattractive and unattractive aspects of the company are given below:

Attractive aspects Unattractive aspects

Zero production damage Higher price

Market advantage Inability to supply on time

Expand its business globally Lack of proper training of workforce

Start online business

New distribution channel

Competitors analysis of Aarong:

Competitor analysis in marketing is an assessment of the strengths and weaknesses of current

and potential competitors. This analysis provides both an offensive and defensive strategic

context through which to identify opportunities and threats. Competitor profiling coalescesall of the relevant sources of competitor analysis into one framework in the support of

efficient and effective strategy formulation, implementation, monitoring and adjustment.

Aarong has its own version of the competitive analysis and its function is clear: to line up your

product with other products and show where yours falls short and where yours is superior.

Each industry brings a different spin to this old favorite and user experience design has its

own set of criteria by which to judge competitors.

Figure: Competitors Analysis of Aarong.


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From the above diagram it is seen that Aarong has competitive advantage over its

competitors on almost every factors. Only few companies have ability to chase some sort of

advantage like Aarong. Such as Rina Latifs product features, qualities and innovativeness,

Kay-Kraft and Anjans supplier, Rangs color and Khubsoortis cost.

Assessment of whether the Company is stronger or weaker than Key

Rivals:

The assessment ofcompanys overall competitive positioninvolves answering two questions:1. How does a company rank relative to competitors on each important factor that

determines market success?

2. Does a company have a net competitive advantage or disadvantage vis--vis majorcompetitors?

Assessing the Aarongs Competitive Strength vs. Key Rivals:

To assess the Aarongs competitive strength vs. key rivals we have to follow the following

steps:

1. List industry key success factors and other relevant measures of competitive strength.

2. Rate firm and key rivals on each factor using rating scale of 1 to 10 (1 = very weak; 5 =

average; 10 = very strong).

3. Decide whether to use a weighted or unweighted rating system (a weighted system is

superior because chosen strength measures are unlikely to be equally important).

4. Sum individual ratings to get an overall measure of competitive strength for each rival.

5. Based on overall strength ratings, determine overall competitive position of firm.


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Key success factors / strength

assessment

Strength Rating ( scale: 1 = very weak; 5 =

average; 10 = very strong )

Aarong Rival 1 Rival 2 Rival 3

Quality/ product performance 9 5 5 7

Reputation/ image 10 7 3 6

Manufacturing capability 6 9 5 6

Technological skills 8 5 3 8

Dealer network/ distribution capability 8 6 5 4

New product innovation capability 9 4 5 4

Financial resources 8 10 3 5

Relative cost position 6 10 1 4

Customer service capabilities 7 7 3 4

Unweighted overall strength rating 71 63 33 48

Table: An unweighted competitive strength assessment.

The above table provides an example of competitive strength assessment of Aarong, using

the hypothetical measurements against three rivals. Summing a companys ratings on all the

measures produces an overall strength rating. The higher a companys overall strength rating,

the stronger its overall competitiveness versus rivals. The bigger the differences between acompanys overall rating and the scores of lower-rated rivals, the greater its implied net

competitive advantage. Conversely, the bigger the difference between a companys overall

rating and the scores of higher-rated rivals, the greater its implied net competitive

disadvantage. Thus, Aarongs total score of 71 signals a much greater net competitive

advantage over rivals. So after considering all things, we can say that the overall situation of

the Aarong is very strong.


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STEP 3:

ACTIONS FOR IMPROVING COMPANY STRATEGY:

1. All competitive capabilities need to be strengthened immediately, so as to add greater power to the

companys strategy and boost sales and profitability. Some new types of competitive capabilities

need to be put in place for better respond to emerging industry and competitive conditions. Such as:

Investment in Research and Development to develop new product line. Make efficient inventory management and increase productivity. Find potential task force to expand business by setting new physical assets.

Take order and sell product using internet. Form partnership and alliance to compete. Develop and deliver specialized service on segmented basis. Improve workforce to expand globally.

2. The following actions should be taken by the company to reduce its competitive liabilities:

Make ability to supply on time. Build structured collection and distribution channels for the organization. Have to Charge reasonable prices. Provide proper training to its workforce. Open branches in rural and semi-urban areas.

I think all weaknesses or competitive deficiencies are in urgent need of correction.

3. All market opportunities should be top priority in future strategic initiatives because these

are good fits with the companys resource strengths and competitive capabilities, present

attractive growth and profit prospects, and /or offer the best potential for securing

competitive advantage.


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4. The following actions should be taken by the company to guard against the threats to its

well being:

Adopt product differentiation and low cost provider strategy. Focus on acquisition Strategy. Invest on modern technology. Revamping the value chain to eliminate or bypass some cost producing

activities.

Emphasis on controlling of cost drivers. Create demand in the mind of customer for its products. Innovate and produce superior products than rivals.

So at last we can say that, the final piece of SWOT analysis translate the diagnosis of the

companys situation into actions for improving the companys strategy and business

prospects.

References:

1. mdshossain.wordpress.com/2009/03/18/competitors-analysis-aarong/

2. Crafting and executing strategy 16th

edition Thompson/ Strickland/ Gamble.

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