Medtron Limited
SWOT Analysis
To formulate an effective strategy, senior management must take into account the distinctive competencies of the organizations, and they must scan the environment. They must determine what competitors are doing, or planning to do, and take that into account. They must critically examine other factors that could have either positive or negative effects. This is sometimes referred to as the SWOT approach and in the succeeding paragraphs will be applied to the situation in Medtron.
Strengths:
Ø There are enough financial resources that are allocated for the operation of this product
Ø Appealing to the aging population
Ø Creation of specialty models
Ø Good competitive skills
Ø Past products have had a good reputation
Ø Advanced key technology
Ø Product innovation skills
Weaknesses:
Ø The product has a narrow product line therefore unable to expand into other markets
Ø High prices may push potential customers to competitors with affordable prices
Ø Introducing a new product, when the niche market is already controlled by other competitor’s
Ø Poor uses of promotional strategy, as consumers were not properly introduced on the products significant use.
Opportunities:
Ø Opportunity to capitalize financially
Ø Develop an admirable/exceptional goodwill that can have monetary value in future
Ø Opportunity for fast market growth
Ø Growing market trend
Ø New competitors continually enter the market
Threats:
Ø The threat of not appealing to target market at all therefore generating a loss as opposed to profit
Ø Entry of imitators
Ø Vulnerable to the business cycle
Ø Tough laws and policies being placed
Wheelchairs impact care delivery, permitting moving from the bed and facilitating exercise. Patients and family gain more control over the care delivery. Care can be delivered in familiar settings. The wheelchair market participants seek to position with chairs that are in growing market segments. Leading vendors offer a wide range of products, services, training, and support. Homecare agencies depend on reimbursement to sell custom units. The designs of wheelchairs are making them intuitive to use. This represents major market opportunity.
Medtron is a very successful company manufacturing wheelchairs and the favorable brand perception had increased sales of its products locally. The company, in terms of its success points from within the wheelchair business has proven its worth to be one of the most reliable manufacturer and source of good quality wheelchairs and services that are beneficial to the customers from within its political, economic, social and technological factors that help Medtron achieve a stable stand in the local market pursuing high end values for their value chain processes that keeps them focus and in place for the business along with its rivals and competitors.
Moreover, as the company provides better products and services there can be a little pressure on the part of its international marketing as Medtron can be too goal oriented and centered its attention on how to tie up fast with the changing realities of technology advancement and innovation but, Medtron remained tough and valuable enhancing good customer and staff relations that gives the industry producing wheelchairs its best shot of the situation wherein technology ways and delivery is powerful and that Medtron is effective in collaborating its strengths and opportunities to overcome the presence of possible weaknesses and threats that may come along while giving respect to such important factors that has affect its business context in both positive and negative ways and that Medtron learned to eliminate or at least control at the same time avoid all the negative connotations that may possibly ill its mission to fulfill its vision and by implying useful business and corporate values to gain a strong sense of responsibility and trust not just to support its value chain models but to maintain a justifiable pace in the production of wheelchairs assimilating global functions from the market respectively.
An organization’s strategy has a long-term impact on the nature and characteristics of the organization. In large measure, strategies affect the ability of an organization to compete. Competitive markets use prices to allocate goods and services to consumers who want them the most and to pay suppliers for producing those goods and services. Most real markets, and virtually all medical markets, depart to some degree from the model of perfect competition. Nevertheless, it is a useful starting point for analyzing the underlying situation of Medtron.
Companies must be competitive to sell their goods and services in the marketplace. Competitiveness is an important factor in determining whether a company prospers, barely gets by, or fails. Business organizations compete with one another in a variety of ways. Key among them are price, quality, product or service differentiation, flexibility, and time to perform certain activities.
A company is said to have made it once it successfully enters the international market (Sullivan, 2002). By that time, the company would have the security of having a trusted brand name for its products. It becomes a household term; people would buy it because they trust it, or they want the prestige that goes along with using a brand of international acclaim. The company would then enjoy enormous profits. The better their standing is in the international market, the more profits they get. This is why several companies such as Medtron strive to enter the international market scene. The big money and the fame are there. Although success in the international market is potentially bigger than those from home-based markets, the strategies involved in international marketing are also very different.
Potential Strategies to Use
Lead in technological innovation
The company should use their ability to their advantage, driving change within the market place rather than rushing to catch up with it. In addition to their existing services, there is a need to invest in technology which will renew consumer’s interest in visiting their stores and purchasing their products.
Exposure
Public relations can offer firms credibility by portraying them as experts in a given area, thereby establishing a professional public image. Unfortunately, media coverage must be earned, which means the firm must be involved in what the media consider newsworthy activity. And to be consistently newsworthy throughout the year is difficult, particularly for new or small practices. Some firms provide informative newsletters to existing clients. This strategy is unquestionably professional and can be implemented at a relatively low cost. But while newsletters are very effective in maintaining regular contact with existing clients, they tend to fall short when it comes to attracting new clients or building referrals (McCracken, 1990).
REFERENCES
McCracken, L.J. An Attention-Getting Marketing Strategy. Journal of Accountancy Vol 170. 1990.
Moingeon, B. & Soenen, G. Corporate and Organizational Identities: Integrating Strategy, Marketing, Communication, and Organizational Perspectives. Routledge. 2002.
Reddy, A.C. The Emerging High-Tech Consumer: A Market Profile and Marketing Strategy Implications. Quorum Books. 1997.
Sullivan, J. The Future of Corporate Globalization: From Extended Order to the Global Village. Quorom Books. 2002.
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