SWOT Analysis Apple

Strengths.

Apple is a very successful company. Sales of its iPod music player had increased its second quarter profits to $320 (June 2005 . !he favoura"le "rand perception had also increased sales of #acintosh computers. So iPod $ives the company access to a %hole ne% series of se$ments that "uy into other parts of the Apple "rand. Sales of its note"oo&s products is also very stron$' and represents a hu$e contri"ution to income for Apple. (rand is all)important. Apple is one of the most esta"lished and healthy *! "rands in the +orld' and has a very loyal set of enthusiastic customers that advocate the "rand. Such a po%erful loyalty means that Ample not only recruits ne% customers' it retains them i.e. they come "ac& for more products and services from Apple' and the company also has the opportunity to e,tend ne% products to them' for e,ample the iPod.

Weaknesses.

*t is reported that the Apple iPod -ano may have a faulty screen. !he company has commented that a "atch of its product has screens that "rea& under impact' and the company is replacin$ all faulty items. !his is in addition to pro"lems %ith early iPods that had faulty "atteries' %here"y the company offered customers free "attery cases. !here is pressure on Apple to increase the price of its music do%nload file' from the music industry itself. #any of these companies ma&e more money from i!unes (i.e. do%nloada"le music files than from their ori$inal ./ sales. Apple has sold a"out 22 million iPod di$ital music players and more than 500 million son$s thou$h its i!unes music store. *t accounts for 021 of all le$ally do%nloaded music in the 2S. !he company is resolute' "ut if it $ives in to the music producers' it may "e perceived as a commercial %ea&ness. 3arly in 2005 Apple announced that it %as to end its lon$)standin$ relationship %ith *(# as a chip supplier' and that it %as a"out to s%itch to *ntel. Some industry specialists commented that the s%ap could confuse Apple4s consumers.

Opportunities.

Apple has the opportunity to develop its i!unes and music player technolo$y into a mo"ile phone format. !he 5o&r mo"ile phone device %as developed "y #otorola. *t has a colour screen' stereo spea&ers and a advance camera system. A version of Apple4s i!unes music store has "een developed for the phone so users can mana$e the trac&s they store on it. /o%nloads are availa"le via a 2S( ca"le' ands soft%are on the handset pauses music if a phone call comes in. -e% technolo$ies and strate$ic alliances offer opportunities for Apple. Podcasts are do%nloada"le radio sho%s that can "e do%nloaded from the *nternet' and then played "ac& on iPods and other #P3 devices at the convenience of the listener. !he listener can su"scri"e to Podcasts for free' and ultimately revenue could "e $enerated from paid for su"scription or throu$h revenue $enerated from sales of other do%nloads.

Threats.

!he "i$$est threat to *! companies such as Apple is the very hi$h level of competition in the technolo$y mar&ets. (ein$ successful attracts competition' and Apple %or&s very hard on research and development and mar&etin$ in order to retain its competitive position. !he popularity of iPod and Apple #ac are su"6ect to demand' and %ill "e affected if economies "e$in to falter and demand falls for their products. !here is also a hi$h product su"stitution effect in the innovative and fast movin$ *! consuma"les mar&et. So iPod and #P3 rule today' "ut only yesterday it %as ./' /A!' and 7inyl. !omorro%4s

technolo$y mi$ht "e completely different. +ireless technolo$ies could replace the need for a physical music player.

*n 2005 Apple %on a le$al case that forced (lo$$ers to name the sources of information that pre) empted the launch of ne% Apple products. *t %as suspect that Apple4s o%n employees had lea&ed confidential information a"out their ne% Asteroid product. !he three individuals prosecuted' all o%ned Apple tri"ute sites' and %ere "i$ fans of the company4s products. !he "lo$s had appeared on their sites' and they %ere forced to reveal their source. !he rulin$ sa% commercial confidentiality as more important as the ri$ht to speech of individuals. Apple are vulnera"le to lea&s that could cost them profits.

SWOT Analysis Strengths.

eBay

e(ay is the leadin$ $lo"al "rand for online auctions. !he company is a $iant mar&etplace used "y more than 800 million people to "uy and sell all manner of thin$s to each other. Pierre 9midyar' a :rench entrepreneur' %as 6ust 20 %hen he sat do%n over a lon$ holiday %ee&end to %rite the ori$inal computer code for %hat eventually "ecame an *nternet me$a"rand. !he "rand has $ro%n tremendously over the decade or so since its conception. !he company e,ploits the "enefits of .ustomer 5elationship #ana$ement (.5# . (uyers and sellers re$ister %ith the company and data is collected "y e(ay on individuals. !his is the (usiness) to) .onsumer ((2. side of their "usiness. ;o%ever the stron$ customer relationships are founded on a .onsumer)to).onsumer (.2. "usiness model' %here stron$ interrelationships occurs' for e,ample %here "uyers and sellers leave feed"ac& for each other' and %here"y a%ards are $iven to the most $enuine of e(ayers. !he term 4e(ay4 has "ecome a $eneric term for online auctions. 9ther companies %ith such a stron$ position include ;oover for vacuum cleaners' and <oo$le for search en$ines. !oday it is common to hear that someone is 4e"ayin$4 or is an 4e(ayer'4 or that someone is $oin$ 4to e(ay.4

Weaknesses.

!he or$ani=ations %or&s tremendously hard to overcome fraud. ;o%ever' the e(ay model does leave itself open to a num"er of fraudulent activities. 9ften the company deals %ith such activities very quic&ly. :raud includes counterfeit $oods "ein$ mar&eted to unsuspectin$ (and suspectin$> e(ayers. 9ther forms of theft could include the redistri"ution of stolen $oods. *t should "e pointed out that fraud and theft are pro"lems %ith individuals' not e(ay. !he %ea&ness is that unscrupulous individuals can e,ploit the .2. "usiness model. As %ith many technolo$y companies' systems "rea&do%ns could distur" the tradin$ activities of e(ay. *n the past "oth e(ay and its payment "rand Paypal have encountered shutdo%ns and outa$es. As technolo$y improves such a %ea&ness is less and less of an issue.

Opportunities.

Acquisitions provide ne% "usiness strate$y opportunities. e(ay has a$reed to "uy online telephone company S&ype !echnolo$ies in a deal reported to "e %orth $2.? "illion. S&ype4s soft%are lets P. users tal& to each other for free and ma&e cut)price calls to mo"iles and landlines. e(ay has "een "uyin$ up firms ) includin$ payment system PayPal ) in an effort to increase the num"er of services it offers to consumers and &eep its profits $ro%in$. -e% and emer$in$ mar&ets provide opportunities (#ar&et /evelopment . .ountries include .hina and *ndia. !here' consumers are "ecomin$ richer and have more leisure time than previous $enerations. Aspirating consumers are a $ro%in$ se$ment in many developin$ nations. !here are also still opportunities in current mar&ets (#ar&et Penetration . +estern 3urope and the 2SA still have many potential consumers that have yet to discover the "enefits of online auctions. 5emem"er products have life cycles that eventually come to an end' and such products are ideal for sellin$ and "uyin$ on e(ay.

Threats.

As %ith many of the $lo"al *nternet "rands' success attracts competition. *nternational competitors competin$ in their domestic mar&ets may have the cultural e,perience that could $ive them a competitive advanta$e over e(ay. *n fact e(ay has found that it has met %ith other 2SA)"ased *nternet companies %hen tradin$ overseas. :or e,ample' @ahoo> dominates the Japanese mar&et.

Attac& "y ille$al practices is a threat. As %ith %ea&nesses a"ove' the "rand is attac&ed "y unscrupulous individuals. :or e,ample e)mails are sent to unsuspectin$ e(ayers pretendin$ to come from e(ay. Ao$os and the desi$n of the pa$es loo& authentic. ;o%ever they are desi$ned so that you input private information that the thieves can use to ta&e pass%ords and identifications. )so "e%are> Some costs cannot "e controlled "y e(ay. :or e,ample delivery char$es and credit card char$es. *f fuel prices %ere to rise' the cost is passed on to the consumer in terms of delivery and postal fees. !his could ma&e the overall cost of an auctioned item too e,pensive. Similarly' if a credit card company such as 7isa or #astercard imposed a char$e for online transaction' the total cost of the same items %ould increase %ith similar consequences.

IBM SWOT analysis

*n 8B2C' !he .omputin$)!a"ulatin$)5ecordin$ .ompany adopted the name *nternational (usiness #achines .orporation. *(# has "een involved in many technolo$ical advances since the early t%entieth century from ta"ulatin$ countriesD census reports to sportin$ event analysis to developin$ computer soft%are and e)"usiness. *(# today is not 6ust the ;ard%are $iant that %e have come to &no%. #ost of their revenue comes from soft%are and consultin$ and leads the %orld in technolo$ical achievements. Strengths

*(# leads the %orld in technolo$ical success %ith patents in the 2nited States for 8E strai$ht years. *n 2000 *(# earned C80? patents and in 200B they increased that amount to C'B8C. *t pu"lished almost C'000 technical inventions and products %ithout patent protection in 200BF this is a valua"le intellectual property. !hey are the company handlin$ B51 of all "usiness in the 8000 most profita"le companies in the 2S. *n 200B they %ere reco$ni=ed as the Cth most reco$ni=ed "rand name in the %orld and they have "een consistently in the top 80 for 20 years. *(# is one of the lar$est and most profita"le companies in the %orld' %ith a value of $?? "illion. !hey have over C00'000 employees %orld%ide. *t is an old' esta"lished company' founded in 80B? as the !a"ulatin$ #achine .ompany "y ;erman ;ollerith' in (roome .ounty' -e% @or&. *n 8BC5 they %ere the first company to esta"lish dedicated research la"s for the creation of technolo$ical innovation' %hich lead to the creation of computers' voice reco$nition soft%are and products that assist those %or&in$ in medicine and radiolo$y.

Weaknesses

*(#Ds si=e is also its %ea&ness. *(#Ds $oliath si=e can ma&e it slo%er to react to customerDs needs and %ants as %ell as to the industryDs fluctuations. And itDs more than C00'000 employees can ma&e it difficult to find the support and services needed. 3normous operatin$ costs and competitors eatin$ into their mar&et share forced them in 2080 to "uy "ac& $0 "illion in stoc&. !ransferrin$ 6o"s oversees has "een an option *(# is usin$ more and more. At the end of 200B' *(# 2SA had a %or&force of 805'000 do%n 30'000 in 6ust a fe% years. *n 200B' there %ere rumors that *(# %ants to $et the 2S %or&force do%n to E0'000. !his is not a %ea&ness for other countries that are a"sor"in$ many of these 2S 6o"s. .ommunication across these different countries can "e very challen$in$. :or e,ample' havin$ the helpdes&s in *ndia creates lan$ua$e "arriers in the 2S. Also' *ndia has e,ported many en$ineers to the 2S "ecause they are cheaper to pay "ut also *ndian 3n$ineers do not have "oth the educational and e,periential accolades of their 2S counterparts. #any of them come over to the states and the fe% 2S employees left in the department have to re)train them' %astin$ countless hours that could "e used in supportin$ their customers. !he current recession has hurt everyone and *(# is not e,empt. :inancial services' %hich accounts for 301 of *(# revenue' has declined. *tDs riddled %ith su"prime mort$a$es forcin$ to mar& do%n their portfolios to ridiculously lo% Gmar&etH prices on pac&a$ed securities that are tradin$ at a fraction of their theoretical value. !his' in turn' is affectin$ the equity of "an&s' and therefore their a"ility to lend.

Servers and Stora$e %hich account for a"out 201 of *(#Ds revenue has declined to 8?1 and a ?1 decline in mar$ins.

Opportunities

*ncreased $lo"ali=ation is an important opportunity that can "e e,ploited "y *(# in order to "alance the fluctuations in different economies. !heir "rand ima$e is synonymous %ith G"i$H and GoldH they need to create products appealin$ to a youn$er $eneration and reposition their company. *(# needs to maintain a competitive ed$e in the mar&etplace and innovation is &ey and %or&in$ %ith *!)related companies to create ne% products in the ever chan$in$ mar&etF use patents to $enerate revenue. *(#Ds love of open source operatin$ systems' specifically Ainu,' "enefits *(# in "oth the short and lon$ term. *(# can sell its i)series platforms %ith Ainu, to respond to the $ro%in$ demands of the operatin$ systems (9S . Also' *(# can also use Ainu, on its I)series mainframe line and even its p) series machines %hich mostly uses *(#Ds o%n A*J %hich usually competes a$ainst the 2-*J operatin$ system. 9pen architecture is &ey to creatin$ and maintainin$ mar&et share. *(#Ds small)medium "usiness (S#( has improved over the years "ut there is definitely a need to increase its mar&et share to have an overall competitive ed$e.

Threats

!he fact that they are completely dependent on #icrosoft (in their computer services division could "e a hu$e pro"lem if anythin$ ever happened to them. ;ac&ers and sensitive information can "e e,posed and e,ploited "y individuals and *(# needs to "e innovative %ith re$ards to fire%alls and protective soft%are. !he supply chain has very fe% suppliers' leavin$ *(# very little to ne$otiate %ith or s%itch to. ;P' Sun #icrosystems are all competitors and are all threats to *(#Ds "ottom line. !heir competitors are a"le to create cheaper products and ma&e more a considera"le profit. Smaller companies that can move faster and provide less e,pensive products and services than *(# can "ecome very costly to *(#Ds more lucrative "undles focusin$ more on lar$er companies %ith "i$ "ud$ets.

SWOT Analysis McDonald's

Strengths

#c/onald4s has "een a thrivin$ "usiness since 8B55 and 20 of the top 50 corporate staff employees started as a restaurant level employee. *n addition' ?E'000 #c/onalds restaurant mana$ers and assistant mana$ers %ere promoted from restaurant staff. :ortune #a$a=ine 2005 listed #c/onald4s as the K(est Place to +or& for #inorities.K #c/onalds invests more than $8 "illion annually in trainin$ its staff' and every year more than 250'000 employees $raduate from #c/onald4s trainin$ facility' ;am"ur$er 2niversity. !he "usiness is ran&ed num"er one in :ortune #a$a=ine4s 2000 list of most admired food service companies. 9ne of the %orld4s most reco$ni=a"le lo$os (the <olden Arches and spo&es character (5onald #c/onald the clo%n . Accordin$ to the Pac&ard .hildren4s ;ospital4s .enter for ;ealthy +ei$ht children a$e 3 to 5 %ere $iven food in the #c/onalds pac&a$in$ and then $iven the same food %ithout the pac&a$in$' and they preferred the food in the #c/onald4s pac&a$in$ every sin$le time. #c/onalds is a community oriented' socially responsi"le company. !hey run 5onald #c/onald ;ouse facilities' %hich provide room and "oard' food and si"lin$ support at a cost of only $80 a day for families %ith children needin$ e,tensive hospital care. 5onald #c/onald ;ouses are located in more than 25B local communities %orld%ide' and 5onald #c/onald .are #o"ile pro$rams offers cost effective medical' dental and education services to children. !hey also sponsor 9lympic athletes. !hey are a $lo"al company operatin$ more than 23'500 restaurants in 80B countries. (y "ein$ spread out in different re$ions' this $ives them the a"ility to %eather economic fluctuations %hich are locali=ed "y country. !hey can also operate effectively in an economic do%nturn due to the social need to see& out comfort foods. !hey successfully and easily adapt their $lo"al restaurants to appeal to the cultural differences. :or e,ample' they serve lam" "ur$ers in *ndia and in the #iddle 3ast' they provide separate entrances for families and sin$le %omen. Appro,imately 051 of #c/onald4s restaurant "usinesses %orld)%ide are o%ned and operated "y franchisees. All franchisees are independent' full)time operators and #c/onald4s %as named 3ntrepreneur4s num"er)one franchise in 8BBE. !hey have $lo"al locations in all ma6or airports' and cities' alon$ the hi$h%ays' tourist locations' theme par&s and inside +al)#art. !hey have an efficient' assem"ly line style of food preparation. *n addition they have a systemi=ation and duplication of all their food prep processes in every restaurant.

#c/onald4s uses only 8001 pure 2S/A inspected "eef' no fillers or additives. Additionally the produce is farm fresh. #c/onald4s serves 8001 farm raised chic&en no fillers or additives and only $rade)A e$$s. #c/onald4s foods are purchased from only certified and inspected suppliers. #c/onalds %or&s closely %ith ranchers' $ro%ers and suppliers to ensure food quality and freshness. #c/onalds only serves name "rand processed items such as /annon @o$urt' Lraft .heese' -estle .hocolate' /asani +ater' -e%man4s 9%n Salad /ressin$s' ;ein= Letchup' #inute #aid Juice. #c/onald4s ta&es food safety very seriously. #ore than 2000 inspections chec&s are performed at every sta$e of the food process. #c/onalds are required to run throu$h E2 safety protocols every day to ensure the food is maintained in a clean contaminate free environment. . #c/onald4s %as the first restaurant of its type to provide consumers %ith nutrition information. -utrition information is printed on all pac&a$in$ and more recently added to the #c/onald4s *nternet site. #c/onalds offers salads' fruit' roasted chic&en' "ottled %ater and other lo% fat and calorie conscious alternatives.

Weaknesses

!heir test mar&etin$ for pi==a failed to yield a su"stantial product. Aeavin$ them much less a"le to compete %ith fast food pi==a chains. ;i$h employee turnover in their restaurants leads to more money "ein$ spent on trainin$. !hey have yet to capitali=e on the trend to%ards or$anic foods. #c/onald4s have pro"lems %ith fluctuations in operatin$ and net profits %hich ultimately impact investor relations. 9peratin$ profit %as $3'B0C million (2005 $C'C33 million (200? and $3'0EB million (200E . -et profits %ere $2'?02 million (2005 ' $3'5CC million (200? and $2'3B5 million (200E .

Opportunities

*n today4s health conscious societies the introduction of a healthy ham"ur$er is a $reat opportunity. !hey %ould "e the first MS5 (Muic& Service 5estaurant to have :/A approval on mar&etin$ a lo% fat lo% calorie ham"ur$er %ith lo% calorie com"o alternatives. .urrently #c/onald4s and its competition health choice items do not include ham"ur$ers. !hey have industrial' :ormica restaurant settin$sF they could provide more upscale restaurant settin$s' li&e the one they have in -e% @or& .ity on (road%ay' to appeal to a more upscale tar$et mar&et. Provide optional aller$en free food items' such as $luten free and peanut free. *n 2000 the "usiness directed efforts at the "rea&fast' chic&en' "evera$e and convenience cate$ories. :or e,ample' hot specialist coffees not only secure sales' "ut also mean that restaurants $et increasin$ num"ers of customer visits. *n 200B #c/onald4s sa% the full "enefits of a venture into "evera$es.

Threats

!hey are a "enchmar& for creatin$ Kcradle to $raveK mar&etin$. !hey entice children as youn$ as one year old into their restaurants %ith special meals' toys' play$rounds and popular movie character tie) ins. .hildren $ro% up eatin$ and en6oyin$ #c/onalds and then continue into adulthood. !hey have "een critici=ed "y many parent advocate $roups for their mar&etin$ practices to%ards children %hich are seen as mar$inally ethical. !hey have "een sued multiple times for havin$ KunhealthyK food' alle$edly %ith addictive additives' contri"utin$ to the o"esity epidemic in America. *n 200C' #ichael Spuloc& filmed the documentary Super Si=e #e' %here he %ent on an all #c/onalds diet for 30 days and %ound up $ettin$ cirrhosis of the liver. !his documentary %as a direct attac& on the MS5 industry as a %hole and "lamed them

for America4s o"esity epidemic. /ue in part to the documentary' #c/onalds no lon$er pushes the super si=e option at the dive thru %indo%.

Any contamination of the food supply' especially e)coli.

Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's, KFC and any midrange sit-do n restaurants!

SWOT Analysis Nestl

Strengths

<lo"al food producer' located in over 800 countries. .onsistently one of the %orld4s lar$est producers of food products' %ith sales in the 2SA in 2000 of $80 "illionF sales and earnin$s in 2000 %ere "etter than e,pected' even in a do%nturned economy. <lo"al sales in 2000 topped $808 "illion. 5epeatedly ran&ed as the %orld4s lar$est "ottled %ater company and have set up facilities to operate %ater resources in a responsi"le manner. *n 2000' -estlN %as named one of KAmerica4s #ost Admired :ood .ompaniesK in :ortune ma$a=ine for the t%elfth consecutive year. -estlN provides quality "rands and products and line e,tensions that are %ell)&no%n' top)sellin$ "rands includin$O Aean .uisine' @oplait' #a$$i' /ryer4sP3dy4s' ;aa$en)/a=s' Stouffer4s' (oost' /i"s' ;ot Poc&ets. .hocolate and .andyO Lit Lat' !oll ;ouse' (utterfin$er' (a"y 5uth' .runch (ar' the +illy +on&a .andy line. Pet ProductsO Purina' Alpo' .at .ho%' :ancy :east' :ris&ies' !idy .at. /rin&sO .arnation' Perrier' -esqui&' S. Pelle$rino' -escafe' .offee#ate' !aster4s .hoice' Juicy Juice. <eneral #illsO su"sidiary %hich ma&es (etty .roc&er' (isquic&' ;am"ur$er ;elper' Pills"ury' 9ld 3l Paso' cereals' fruit snac&s' fro=en pi==a' canned soups' fro=en ve$eta"les' ready)made fro=en meals. <er"erO "a"y formula' prepared "a"y foods' "a"y cereals' %ater' 6uice' yo$urt' foods for infants' toddlers and preschoolers.

Professional "rands sold to restaurants' colle$es' hotels' and food professionals includin$ Jenny .rai$ meals' *mpact liquid meals for trauma patients' liquid meals for dia"etics' and 9pti:ast %ei$ht loss products. Successful due in part to their unquestiona"le a"ility to &eep ma6or "rands consistently in the forefront of consumer4s minds (and in their shoppin$ carts "y renovatin$ e,istin$ product lines' &eepin$ ma6or "rands from slippin$ into saturationPdecline and havin$ superior access to distri"ution channels.

Weaknesses

!heir A.)8 division %as not as successful as they thou$ht it %ould "e in :rance. *n the late 8B00s' /annon entered the mar&et %ith a health)"ased yo$urt' and "ecome the top sellin$ "rand of yo$urtF -estlN4s 8BBC launch %as "ehind the product life cycle curve in an already mature mar&et and could not compete a$ainst a stron$' esta"lished "rand. <ro%th in their or$anic food sales division %as flat in 2000' even thou$h the industry $re% 0.B1. Since 200C the "rea&fast cereal industry has "een under fire from the :/A and the American #edical Association' "oth of %hich say that false claims of Kheart healthyK and Klo%er cholesterolK need to "e removed from pac&a$in$ and advertisin$. !hey have also "een forced to reduce the amount of su$ar in their products' as parent4s advocates $roups claimed they %ere contri"utin$ to the dia"etes epidemic amon$ American children. <eneral #ills is an e,perienced' esta"lished "rand and are the mar&et leader in the 2SA' ho%ever' they have "een lac&in$ in innovation' have not cashed in on the "oomin$ health food cra=e and have "een "ehind in creatin$ ne%' niche products' especially in their yo$urt division' %here @oplait is the only "rand ma&in$ a profit. *n 2000' althou$h their products did not carry the recalled pistachios' several of their ice cream "rands' /ryer4s' 3dy4s and ;aa$en)/a=s' %ere still pla$ued %ith "ad P5 and loss of sales.

Opportunities

*n today4s health conscious societies' they can introduce more health)"ased products' and "ecause they are a mar&et leader' they %ould li&ely "e more successful. Provide aller$en free food items' such as $luten free and peanut free. !hey launched a ne% premium line of hi$her cacao content chocolates du""ed -estlN !reasures <old' in order to cash in on the Krecession economyK in %hich consumers cut "ac& on lu,ury $oods' "ut re$ularly indul$e in candy and chocolate. Americans %ant lu,ury chocolates' and hi$h)end chocolate is immune to the recession (so far ' "ecause it is an ine,pensive indul$ence. 9pened -estlN .afN4s in ma6or cities to feature -estlN products.

Threats

Any contamination of the food supply' especially e)coli. !heir !oll ;ouse "rand coo&ie dou$h %as recalled in #arch of 200B "ecause of e)coli. 9ut"rea&s %ere lin&ed to 20 states and the product had to "e recalled $lo"ally. -estlN has yet to find out ho% this happened' and is still investi$atin$. !hey %ere affected "y the pet food recall in 200E' in %hich B5 different "rands of do$ and cat food %ere recalled due to contamination %ith rat poison. Also in 200E' :/A learned that certain pet foods %ere sic&enin$ and &illin$ cats and do$s. :/A found contaminants in ve$eta"le proteins imported into the 2nited States from .hina and used as in$redients in pet food. 5a% chocolate in$redient prices are soarin$F dairy costs alone rose 501 in 2000' this cuts heavily into their profit mar$ins and often $ets passed on to consumers' "y shrin&in$ the pac&a$in$ in a %ay that is almost unnoticea"le)therefore the consumer is payin$ the same prices for less product.

!hey have ma6or competitors' li&e ;ershey4s' .ad"ury)Sch%eppes (o%ned "y Pepsi ' Aindt and <hirardelli' Lello$$4s' Post' Star"uc&s' (eech)-ut' Mua&er' Lraft :oods' /annon' /el)#onte' *ams' 3arth4s (est' ;ein=' :rito)Aay (o%ned "y Pepsi .

SWOT Analysis Nike Inc.

Strengths.

-i&e is a very competitive or$ani=ation. Phil Lni$ht (:ounder and .39 is often quoted as sayin$ that 4(usiness is %ar %ithout "ullets.4 -i&e has a healthy disli&e of is competitors. At the Atlanta 9lympics' 5ee"o& %ent to the e,pense of sponsorin$ the $ames. -i&e did not. ;o%ever -i&e sponsored the top athletes and $ained valua"le covera$e. -i&e has no factories. *t does not tie up cash in "uildin$s and manufacturin$ %or&ers. !his ma&es a very lean or$ani=ation. -i&e is stron$ at research and development' as is evidenced "y its evolvin$ and innovative product ran$e. !hey then manufacture %herever they can produce hi$h quality product at the lo%est possi"le price. *f prices rise' and products can "e made more cheaply else%here (to the same or "etter specification ' -i&e %ill move production. -i&e is a $lo"al "rand. *t is the num"er one sports "rand in the +orld. *ts famous 4S%oosh4 is instantly reco$nisa"le' and Phil Lni$ht even has it tattooed on his an&le.

Weaknesses.

!he or$ani=ation does have a diversified ran$e of sports products. ;o%ever' the income of the "usiness is still heavily dependent upon its share of the foot%ear mar&et. !his may leave it vulnera"le if for any reason its mar&et share erodes. !he retail sector is very price sensitive. -i&e does have its o%n retailer in -i&e !o%n. ;o%ever' most of its income is derived from sellin$ into retailers. 5etailers tend to offer a very similar e,perience to the consumer. .an you tell one sports retailer from anotherQ So mar$ins tend to $et squee=ed as retailers try to pass some of the lo% price competition pressure onto -i&e.

Opportunities.

Product development offers -i&e many opportunities. !he "rand is fiercely defended "y its o%ners %hom truly "elieve that -i&e is not a fashion "rand. ;o%ever' li&e it or not' consumers that %ear -i&e product do not al%ays "uy it to participate in sport. Some %ould ar$ue that in youth culture especially' -i&e is a fashion "rand. !his creates its o%n opportunities' since product could "ecome unfashiona"le "efore it %ears out i.e. consumers need to replace shoes. !here is also the opportunity to develop products such as sport %ear' sun$lasses and 6e%ellery. Such hi$h value items do tend to have associated %ith them' hi$h profits. !he "usiness could also "e developed internationally' "uildin$ upon its stron$ $lo"al "rand reco$nition. !here are many mar&ets that have the disposa"le income to spend on hi$h value sports $oods. :or e,ample' emer$in$ mar&ets such as .hina and *ndia have a ne% richer $eneration of consumers. !here are also $lo"al mar&etin$ events that can "e utilised to support the "rand such as the +orld .up (soccer and !he 9lympics.

Threats.

-i&e is e,posed to the international nature of trade. *t "uys and sells in different currencies and so costs and mar$ins are not sta"le over lon$ periods of time. Such an e,posure could mean that -i&e may "e manufacturin$ andPor sellin$ at a loss. !his is an issue that faces all $lo"al "rands. !he mar&et for sports shoes and $arments is very competitive. !he model developed "y Phil Lni$ht in his Stamford (usiness School days (hi$h value "randed product manufactured at a lo% cost is no% commonly used and to an e,tent is no lon$er a "asis for sustaina"le competitive advanta$e. .ompetitors are developin$ alternative "rands to ta&e a%ay -i&e4s mar&et share. As discussed a"ove in %ea&nesses' the retail sector is "ecomin$ price competitive. !his ultimately means that consumers are shoppin$ around for a "etter deal. So if one store char$es a price for a pair of sports shoes' the consumer could $o to the store alon$ the street to compare prices for the e,actly the same item' and "uy the cheaper of the t%o. Such consumer price sensitivity is a potential e,ternal threat to -i&e.

SWOT Analysis Toyota

Strengths.

-e% investment "y !oyota in factories in the 2S and .hina sa% 2005 profits rise' a$ainst the %orld%ide motor industry trend. -et profits rose 0.01 to 8.8E trillion yen ($88"nF R5.05"n ' %hile sales %ere E.31 hi$her at 80.55 trillion yen. .ommentators ar$ue that this is "ecause the company has the ri$ht mi, of products for the mar&ets that it serves. !his is an e,ample of very focused se$mentation' tar$etin$ and positionin$ in a num"er of countries. *n 2003 !oyota &noc&ed its rivals :ord into third spot' to "ecome the +orld4s second lar$est carma&er %ith ?.E0 million units. !he company is still "ehind rivals <eneral #otors %ith 0.5B million units in the same period. *ts stron$ industry position is "ased upon a num"er of factors includin$ a diversified product ran$e' hi$hly tar$eted mar&etin$ and a commitment to lean manufacturin$ and quality. !he company ma&es a lar$e ran$e of vehicles for "oth private customers and commercial or$ani=ations' from the small @aris to lar$e truc&s. !he company uses mar&etin$ techniques to identify and satisfy customer needs. *ts "rand is a household name. !he company also ma,imi=es profit throu$h efficient manufacturin$ approaches (e.$. !otal Muality #ana$ement .

Weaknesses

(ein$ "i$ has its o%n pro"lems. !he +orld mar&et for cars is in a condition of over supply and so car manufacturers need to ma&e sure that it is their models that consumers %ant. !oyota mar&ets most of its products in the 2S and in Japan. !herefore it is e,posed to fluctuatin$ economic and political conditions those mar&ets. Perhaps that is %hy the company is "e$innin$ to shift its attentions to the emer$in$ .hinese mar&et. #ovements in e,chan$e rates could see the already narro% mar$ins in the car mar&et "ein$ reduced. !he company needs to &eep producin$ cars in order to retain its operational efficiency. .ar plants represent a hu$e investment in e,pensive fi,ed costs' as %ell as the hi$h costs of trainin$ and retainin$ la"our. So if the car mar&et e,periences a do%n turn' the company could see over capapacity. *f on the other hand the car mar&et e,periences an upturn' then the company may miss out on potential sales due to under capacity i.e. it ta&es time to accommodate. !his is a typical pro"lem %ith hi$h volume car manufacturin$.

Opportunities.

Ae,us and !oyota no% have a reputation for manufacturin$ environmentally friendly vehicles. Ae,us has 5J C00h hy"rid' and !oyota has it Prius. (oth are "ased upon advance technolo$ies developed "y the or$ani=ation. 5oc&etin$ oil prices have seen sales of the ne% hy"rid vehicles increase. !oyota has also sold on its technolo$y to other motor manufacturers' for e,ample :ord has "ou$ht into the technolo$y for its ne% 3,plorer S27 ;y"rid. Such moves can only firm up !oyota4s interest and investment in hy"rid 5S/. !oyota is to tar$et the 4ur"an youth4 mar&et. !he company has launched its ne% Ay$o' %hich is tar$eted at the street%ise youth mar&et and captures (or attempts to the nature of dance and /J culture in a very competitive se$ment. !he vehicle itself is a unique converti"le' %ith models e,tendin$ at their rear> !he narro% se$ment is notorious for it narro% mar$ins and difficulties for "randin$.

Threats.

Product recalls are al%ays a pro"lem for vehicle manufacturers. *n 2005 the company had to recall 000'00 sports utility vehicles and pic& up truc&s due to faulty front suspension systems. !oyota did not $ ive details of ho% much the recall %ould cost. !he ma6ority of affected vehicles %ere sold in the 2S' %hile the rest %ere sold in Japan' 3urope and Australia. As %ith any car manufacturer' !oyota faces tremendous competitive rivalry in the car mar&et. .ompetition is increasin$ almost daily' %ith ne% entrants comin$ into the mar&et from .hina' South Lorea and ne% plants in 3astern 3urope. !he company is also e,posed to any movement in the price of ra% materials such as ru""er' steel and fuel. !he &ey economies in the Pacific' the 2S and 3urope also e,perience slo% do%ns. !hese economic factors are potential threats for !oyota.

SWOT Analysis Star!ucks

Strengths.

Star"uc&s .orporation is a very profita"le or$ani=ation' earnin$ in e,cess of $?00 million in 200C.!he company $enerated revenue of more than $5000 million in the same year. *t is a $lo"al coffee "rand "uilt upon a reputation for fine products and services. *t has almost B000 cafes in almost C0 countries. Star"uc&s %as one of the Fortune Top 100 Companies to Work For in 2005. !he company is a respected employer that values its %or&force. !he or$ani=ation has stron$ ethical values and an ethical mission statement as follo%s' 'Starbucks is committed to a role of environmental leadership in all facets of our business.'

Weaknesses.

Star"uc&s has a reputation for ne% product development and creativity. ;o%ever' they remain vulnera"le to the possi"ility that their innovation may falter over time.

!he or$ani=ation has a stron$ presence in the 2nited States of America %ith more than three quarters of their cafes located in the home mar&et. *t is often ar$ued that they need to loo& for a portfolio of countries' in order to spread "usiness ris&. !he or$ani=ation is dependant on a main competitive advanta$e' the retail of coffee. !his could ma&e them slo% to diversify into other sectors should the need arise.

Opportunities.

Star"uc&s are very $ood at ta&in$ advanta$e of opportunties. *n 200C the company created a ./) "urnin$ service in their Santa #onica (.alifornia 2SA cafe %ith ;e%lett Pac&ard' %here customers create their o%n music ./. -e% products and services that can "e retailed in their cafes' such as :air !rade products. !he company has the opportunity to e,pand its $lo"al operations. -e% mar&ets for coffee such as *ndia and the Pacific 5im nations are "e$innin$ to emer$e. .o)"randin$ %ith other manufacturers of food and drin&' and "rand franchisin$ to manufacturers of other $oods and services "oth have potential.

Threats.

+ho &no%s if the mar&et for coffee %ill $ro% and stay in favour %ith customers' or %hether another type of "evera$e or leisure activity %ill replace coffee in the futureQ Star"uc&s are e,posed to rises in the cost of coffee and dairy products. Since its conception in Pi&e Place #ar&et' Seattle in 8BE8' Star"uc&s4 success has lead to the mar&et entry of many competitors and copy cat "rands that pose potential threats.