SWOT Analysis AmazonAmazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (£29.9m) from $76m in the same period in 2004. Sales jumped 26% to $1.75bn. Until recent years Amazon was experiencing large losses, due to its huge initial set up costs. The recent dip is due to promotions that have offered reduced delivery costs to consumers. This SWOT analysis is about Amazon.

Strengths.

Amazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (£29.9m) from $76m in the same period in 2004. Sales jumped 26% to $1.75bn. Until recent years Amazon was experiencing large losses, due to its huge initial set up costs. The recent dip is due to promotions that have offered reduced delivery costs to consumers.

Customer Relationship Management (CRM) and Information Technology (IT) support Amazon's business strategy. The company carefully records data on customer buyer behaviour. This enables them to offer to an individual specific items, or bundles of items, based upon preferences demonstrated through purchases or items visited.

Amazon is a huge global brand. It is recognisable for two main reasons. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. It was an early exploiter of online technologies for e-commerce, which made it one of the first online retailers. It has built on nits early successes with books, and now has product categories that include electronics, toys and games, DIY and more.

Weaknesses.

As Amazon adds new categories to its business, it risks damaging its brand. Amazon is the number one retailer for books. Toy-R-Us is the number one retailers for toys and games. Imagine if Toys-R-Us began to sell books. This would confuse its consumers and endanger its brands. In the same way, many of the new categories, for example automotive, may prove to be too confusing for customers.

The company may at some point need to reconsider its strategy of offering free shipping to customers. It is a fair strategy since one could visit a more local retailer, and pay no costs. However, it is rumoured that shipping costs could be up to $500m, and such a high figure would undoubtedly erode profits.

Opportunities.

The company is now increasingly cashing in on its credentials as an online retail pioneer by selling its expertise to major store groups. For example, British retailer Marks and Spencer announced a joint venture with Amazon to sell its products and service online. Other recent collaborations have been with Target, Toys-R-Us and the NBA. Amazon's

new Luxembourg-based division aims to provide tailored services to retailers as a technology service provider in Europe.

There are also opportunities for Amazon to build collaborations with the public sector. For example the company announced a deal with the British Library, London, in 2004. The benefit is that customers c an search for rare or antique books. The library's catalogue of published works is now on the Amazon website, meaning it has details of more than 2.5m books on the site.

In 2004 Amazon moved into the Chinese market, by buying china's biggest online retailer, Joyo.com . The deal was reported to be worth around $75m (£40m). Joyo.com has many similarities to its new owner, in that it retails books, movies, toys, and music at discounted prices.

Threats

All successful Internet businesses attract competition. Since Amazon sells the same or similar products as high street retailers and other online businesses, it may become more and more difficult to differentiate the brand from its competitors. Amazon does have it s brand. It also has a huge range of products. Otherwise, price competition could damage the business.

International competitors may also intrude upon Amazon as it expands. Those domestic (US-based) rivals unable to compete with Amazon in the US, may entrench overseas and compete with them on foreign fronts. Joint ventures, strategic alliances and mergers could see Amazon losing its top position in some markets.

The products that Amazon sells tend to be bought as gifts, especially at Christmas. This means that there is an element of seasonality to the business. However, by trading in overseas markets in different cultures such seasonality may not be enduring.

SWOT Analysis - Tata Motors LimitedThe company began in 1945 and has produced more than 4 million vehicles. Tata Motors Limited is the largest car producer in India. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people. This SWOT analysis is about Tata Motors.

Strengths

The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.'

The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.

Weaknesses

The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India?

One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths).

Opportunities

In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments.

Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million.

Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano!

The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

Threats

Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production.

Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this problem could be alleviated.

Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others.

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

SWOT Analysis ToyotaThis SWOT analysis is about Toyota.

Strengths.

New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of very focused segmentation, targeting and positioning in a number of countries.

In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).

Weaknesses

Being big has its own problems. The World market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating economic and political conditions those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced.

The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labour. So if the car market experiences a down turn, the company could see over capapacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing.

Opportunities.

Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D.

Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding.

Threats.

Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems. Toyota did not g ive details of how much the recall would cost. The majority of affected vehicles were sold in the US, while the rest were sold in Japan, Europe and Australia.

As with any car manufacturer, Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. The key economies in the Pacific, the US and Europe also experience slow downs. These economic factors are potential threats for Toyota.

Thanks to the dedication and hard work of indivduals who make up the Toyota family, Toyota has become the forth biggest automaker in North Amercia. Here you will find some of the many figures behind that fact.

SWOT Analysis Toys "R" UsThis SWOT analysis is about Toys "R" Us.

Strengths.

Toys "R" Us has in excess of 1500 superstores in the United States and Worldwide. It also owns the baby brand, Babies R Us which adds another 200 + stores. Toys "R" Us also markets successfully on the Web (in collaboration with Amazon.com). It has a huge distribution network that benefits from advanced logistical systems. Having so much shelf space means that the company has a strong bargaining position when it comes to buying prices from manufacturers. It turned over more than $11 billion in 2005.

The company sells many different product ranges. There are benefits and disadvantages to this. However, a key strength is that the company has a diversified portfolio of products, which means that while some ranges are underperforming, others are out performing. As long as technology allows them to spot successes and then to focus upon them, they have a competitive strength.

Opportunities.

There are opportunities for joint ventures and strategic alliances. Toys "R" Us works closely with Amazon.com and its baby products category. This not only plays to the strengths of both companies, but also provides opportunities. Amazon is strong at the online part of the business, creating the web site, warehousing products and delivering them to customers. Toys "R" Us will use its buying power, but ultimately carries the inventory risk (i.e. if it doesn't sell, its money is tied up in physical stock).

Toys "R" Us is a good neighbour. For example, in 2005 it went out of its way to help the Louisiana victims of hurricane Katrina. Toys "R" Us donated six trucks full of toys and baby supplies including diapers, wipes, and formula, as well as batteries and water to multiple locations that were housing evacuees. Babies "R" Us has also donated over 17 pallets of baby and children's clothing to the national charity Kids In Distressed Situations (KIDS). Such associations will help to sustain its brand with key consumers.

As with many of the brands considered by MarektingTeacher.com's FREE SWOT analyses, the International market is very important to Toys "R" Us. The citizens of emerging nations such as China and India are getting wealthier and better educated. Consumers have more disposable income and leisure time, and both of these could increase over coming years. The types of goods and services retailed by the company

could be marketed more aggressively overseas. Toys "R" Us could look out for strategic partners, or indeed go it alone.

Threats.

There is strong competitive rivalry in the toy market, not only form Wal-Mart, but also from KB Toys and Target. The toy brand is often not associated with the retailer. So if a particular kid's toy has grabbed the imagination and the spending power of its target consumer, any retail outlet is as good as another. Differentiation is difficult, and toy retailers often have to compete on price, range or availability.

Let's face it today China and similar low cost manufacturing paradises are where toys are made. Low manufacturing costs are important if margins are to be retained. The problem, and potential weakness, is that countries and trading communities tend to impose quotas and tariffs in order to protect local manufacturing. All countries do it. However, Toy R Us could potentially be left without the toys people want to buy if embargoes are implemented on countries such as China.

In 1948, at the young age of 25, Charles Lazarus began a business totally dedicated to kids and their needs just in time for the post-war baby boom era. He had no idea that his first baby furniture store in Washington D.C., would evolve into an $11 billion dollar business with approximately 1,500 stores worldwide!

SWOT Analysis Wal-MartThis SWOT analysis is about Wal-Mart.

Strengths

Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.

Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).

The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.

A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.

Weaknesses

Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.

Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.

The company is global, but has has a presence in relatively few countries Worldwide.

Opportunities

To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.

The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.

New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.

Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.

Threats

Being number one means that you are the target of competition, locally and globally. Being a global retailer means that you are exposed to political problems in the countries

that you operate in. The cost of producing many consumer products tends to have fallen because of lower

manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.

'Wal-Mart Stores, Inc. is the world's largest retailer, with $256.3 billion in sales in the fiscal year ending Jan. 31, 2004. The company employs 1.6 million associates worldwide through more than 3,600 facilities in the United States and more than 1,570 units.

SWOT Analysis Yahoo!This SWOT analysis is about Yahoo

Strengths.

Yahoo!'s Overture is a tremendously profitable Internet advertising business. It focuses on affiliate advertising for large advertising accounts, in the same way as Google's Adsense programme. This is an important income stream for Yahoo!.

Yahoo! has over 350 million users of its services and solutions. This makes it a very powerful marketing company, with a very well known brand. Some reports indicate that is it is the most popular website in the World.

A key long-term strength is Yahoo!'s international business presence. As the Internet expands and it is adopted by more nations the opportunities for Internet brands begin to emerge. Yahoo! is well placed to take advantage of these opportunities with its strategic business units in Asia, Europe and Australia.

The Yahoo! Directory is an original source of structured information. It has built over the last decade, and unlike mainstream search engines, its content is moderated (i.e. sites are vetted before their inclusion).

Weaknesses.

Differentiation is difficult for Yahoo!. Almost all of its packaged services are available from other sources.

1. (i) Search facilities are available on MSN and Google.2. (ii) Free E-mail accounts are available from Hotmail (MSN) or G-Mail (Google),

and many, many others.3. (iii) New is available from CNN or the BBC.4. (iv) Shopping is available everywhere on the Internet. Google has Froogle.

Online advertising is a new income stream for organizations such as MSN, Yahoo! and Goggle. Yes, today they are very, very profitable. However, as technology develops and new unforeseen advertising media emerge, the future is uncertain for these income streams. This is a weakness for Yahoo! and its competitors.

Another income stream that has been key to Yahoo! is derived from its partnerships with telecommunication providers. For example, you buy an Internet connection package from your local telephone company, and it includes a fee-based Yahoo! package including e-mail accounts, user support and other added value services. If ever this channel is changed or removed, the income stream would be affected.

Opportunities

The international market is a huge opportunity for Yahoo!. Yahoo!, Microsoft and Google are busy carving niches and taking over businesses in are around the Greater China Region. China has over 1,200,000,000 citizens. Other economies, such as India, also offer tremendous growth potential.

The Development of the Yahoo! Directory has potential for new business and income streams. Two thirds of organizations in Ohmae's Triad (Europe, Japan and the USA) are Small Medium Enterprises (SME'). SME's are potential directory advertisers.

Mobile technologies offer another opportunity for Yahoo!. Today we access the Internet using personal computers. Tomorrow phones, televisions, personal organisers, music players and computers will merge and morph. The mobile devices of the future will need services and solutions. Yahoo! would be well placed to provide many of them.

Threats.

The biggest threat for all web-based organization is competition. Huge profits attract investors, innovators and entrepreneurs. Dotcom fever has not gone away, it is now more focused on profit delivery. All of Yahoo!'s key services have competitors such as AOL, Google and many others.

International, culture specific competitors could affect Yahoo! in the future, unless strategic alliances are forged. China has developed its own search engines, as has India. Why should the World use USA based companies such as Yahoo!? There needs to be a series of substantial competitive advantages to see the business remain as an international brand. Look at what has been learned from the global car industry, or electronics industry.

When Yahoo!! was founded in 1994 by Stanford Ph.D. students, David Filo and Jerry Yang, it began as their hobby and has evolved into a global brand that has changed the way people communicate with each other, find and access information, and make purchases

SWOT Analysis General MotorsRon Thomas, Thomas Enterprises, Indianapolis

Introduction

General Motors is an omnipresent company in the United States, a company so essential to the overall health of the U.S economy that it spawned the phrase “as GM goes, so goes the nation”. Long known for the manufacturing of cars, trucks and automobiles, General Motors has also engaged in finance and insurance. However, most recently the global recession has had a devastating impact on its, cash flows, financial condition and operations. To survive, the company has had to accept a government bailout plan and its employees the United Autoworkers of America, has also made concessions. This SWOT analysis is about General Motors.

Strengths

Branding - Born in Detroit Michigan in 1910 General motors has produced a stable of automobiles such as Chevrolet, Pontiac Cadillac and Buick which have become household names in the U.S. As such, the General Motors Brand is well rooted not only in America but throughout the world.

Worldwide Presence - General Motors truly has an international presence with factories in Poland, Russia, South Africa Ecuador, Egypt, Germany, Argentina, Australia, Belgium, Brazil, China, Colombia, South Korea, Spain, Sweden, and Thailand. The company is even in Viet Nam. In addition, it also has assembly, manufacturing, distribution, office and warehousing operations in 55 other countries.

Weaknesses

Diminishing Dealer Network - General Motors has compiled a list of more than 1,000 dealerships market for closure. The company has announced that it will not renew its franchise agreements with nearly one quarter of its U.S. dealerships. As of December 31, 2008, GM had 715 dealerships in Canada, as recent as May of 2009 plans called for a anywhere from 40 to 200 closures.

Insufficient Liquidity - General Motors has experienced a reduction in liquidity to $14 billion in FY2008 from $27.3 billion in 2007. Losses are attributed to lower sales volumes and a reduction in working capital. Both research and development, as well as relationships with suppliers are negatively affected by the reduced liquidity.

Inadequate Performance among Some Business Segments - In 2008 the GME segment accounted to 21.8% of the total revenues and its revenues decreased 8.8% to $32,440 million. Other business segments experiencing declines include GMNA which fell 23.9% to $82,938 million, and GMAP which stood at $12,477 million for FY 2008, a decline of 15%.

Low Debt Ratings - Four independent credit rating agencies assess GMs debt ratings and ability to pay interest, dividends and principal on securities. Moodys Investor Service, Fitch Ratings DBRS and Standard & Poors evaluate GM. As of 2008, all four had downgraded their assessment ratings for GM.

Opportunities

Growth Potential in India and China - There are positive projects for GM business in China and India. In China the market for new cars is in the midst of a 14% growth rate projected to reach over $97 billion in 2008. Meanwhile in India, the market for new cars grew by 15.5% in 2008 to a dollar value of $28 billion. A sign that India will play an even bigger is the projected increase to 2.5 million units by the end of 2013.

Increased Global Truck Market - Steady growth rates are projected in the next few years. The market's volume is expected to rise to 21.5 million units by the end of 2013. The light commercial vehicles segment was the market’s largest in 2008, generating total volumes of 9.8 million units, equivalent to 58.1% of overall value.

Rising Demand for Hybrid Vehicles - General Motors produces six hybrid models in the US including the Saturn Vue and Aura Hybrids, Chevrolet Malibu and Tahoe Hybrids, GMC Yukon Hybrid as well as a Cadillac Escalade Hybrid. The company is also investing in hybrid and plug-in vehicles, for both cars and trucks. It is anticipated that GM will produce up to nine hybrid models following the introduction of the Chevrolet Silverado Hybrid and GMC Sierra Hybrid. International demand for light hybrid electric vehicles (HEVs) is expected to increase. It is expected to rise to 800,000 units in 2009 and estimated to reach 4.5 million units in 2013. Therefore, a positive outlook for light hybrid electric vehicles and plug-in vehicles market would boost the demand for GM’s products.

Threats

The Continuing Global Recession - Dire predictions for the global economy were realized in 2009 and stalled economic growth continued into 2010. The economic decline reduced consumer demand for less fuel efficient vehicles, including full size pick-up trucks and sport utility vehicles, which had been GM’s most profitable products. In addition, the economic climate has resulted in tighter credit markets making it harder for consumers to finance automobile purchases.

Weakness in Global Automobile Industry - Consumer Requirements for commercial vehicles declined in the NAFTA region, Western Europe and Japan. The Western European automobile markets suffered as well particularly the volume markets of Spain down 28.1%, Italy down 13.4% and the UK down 11.3%. Germany declined 1.8%) and France 0.7% also experienced downward trend in the second half of 2008. In total, 8.4% fewer automobiles were sold in Western Europe. The Japanese car market also declined, with a drop in sales of nearly 4% in 2008.

Intense competition - GMs financial status makes it vulnerable to fierce competition from fits such as AB Volvo, Bayerische Motoren Werke, Daimler, Fiat Group Automobiles, Ford Motor, Honda Motor, Hyundai Motor, Isuzu Motors, Mazda Motor, Nissan Motor, PACCAR, PSA Peugeot Citroen, Renault, Toyota Motor and Volkswagen. Many have responded to the crises by adding vehicle enhancements, providing subsidized financing or leasing programs in order to sell more vehicles. They are also offering option package discounts, other marketing incentives and are reducing vehicle prices in certain markets. These actions are expected to have a negative effect on GM’s vehicle pricing, market share and operating results particularly on the low end of the market.

General Motors, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 204,000 people in every major region of the world and does business in some 140 countri

SWOT Analysis KrogerRon Thomas, Thomas Enterprises, Indianapolis

This SWOT analysis is about Kroger.

Strengths

Sturdy Market Position - Kroger has weathered the economic recession with relative success due to the strong market position it had going in. Kroger held number one and number two market share position in 39 out of 42 major markets in 2009. The company competed with 1,418 other supercenters and has achieved at least a number three market share position in 35 of its major markets. The company’s’ brand equity provides a strong competitive advantage over other firms. In 2009 Kroger was listed 82nd in the Global 500 Brand Ranking (Ranking the Brands.com), while the Reputation Institute listed it among the top 20 most reputable companies. This strength will serve the company well as it endures its most recent negative earnings forecast.

 

Three-pronged Branding Approach - Private selection, banner brands and Kroger value represent the company’s three-tiered branding approach. Specifically, the private selection brand strives to compete with national upscale brands, while Kroger value delivers quality items at lower prices. The banner brands consist of the company’s private label items like Ralph’s, King Soopers, and Kroger. The three-pronged approach enables Kroger to meet the demands of a wide range of customers and offers them savings not available with national brands.

Proficient Manufacturing Capabilities - Kroger operates around 40 manufacturing plants for processing, packaging and manufacturing its private label products. The company manufactured approximately 43% of its 14,400 private label items in its plants. Kroger’s inventory of manufacturing plants Include 18 dairies, 10 deli or bakery plants, five grocery product plants, three beverage plants, two meat plants and two cheese plants. These manufacturing capabilities allow for more efficient quality control and efficient distribution to stores.

Diversified Retail Product Inventory - Kroger product inventory includes a wide range of private and national brand products in a number of product categories including food produce, grocery, beverages, apparel, meat, jewelry, accessories, and general merchandise. The diversification strategy is also evident in its fuel service stations and financial services. This wide range of products and services enables the firm to create a one-stop atmosphere which facilitates frequent repeat visits for a number of purposes.

Weaknesses

Vendor Quality Control Lapses - Kroger obtains a substantial portion of its merchandise from suppliers that it has limiter control over. As a result, a number of consumer alerts and product recalls have been necessary. . In the first quarter of 2009, Kroger recalled a number of products including Lawry fajitas spices, and Lian How chili garlic sauce. Other recalls include Banquet Pot Pies, Kroger California Seasoning Blend Garlic Powder and Kroger Special Seasoning Blend Lemon Pepper. Obviously these recalls especially those deemed hazardous to ones health serve to harm the company's brand image by reducing customer confidence and loyalty.

A Unionized Workforce - Kroger’s unionized workforce puts it at a competitive disadvantage when compared with its peers Wal-Mart, Sears or Target. Its competitors enjoy lower labor costs and other operating efficiencies. This environment often includes time-consuming labor negotiations and the formulation of agreements in order to avoid work stoppages. Each work stoppage comes with the potential to impact the bottom line.

Legal proceeding related to Ralph’s Grocery Company case - Kroger has faced a relatively long list of legal issues stemming from its acquisition of Fred Meyer and Ralph’s Grocery. Among them include a settlement in 2006 over illegal hiring practices that occurred during a 141 day labor dispute. Potential legal issues for Kroger have also loomed in connection with Ralph’s alleged improper accounting practices. Kroger is awaiting a decision by the Commissioner of the Internal Revenue Service with regard to a transaction between Ralph’s Holding Company and Ralph’s Grocery. A negative decision in the case could have substantial financial impact on Kroger.

Opportunities

Increased Emphasis on Private Label Brands - Kroger continues to develop its private brands as a strategic asset. With a goal of decreasing its dependence on national brands, Kroger has increased promotions of its own products which include more than 14,000 brands. During the fourth quarter of FY2009, the company’s private label brands accounted for approximately 27% of the entire grocery sales. Private Selection, a private brand owned by Kroger, exceeded $1 billion in sales in FY2009. These brands have offered much appreciated savings to its customers during the economic recession.

Strategic Expansion Plans - Kroger plans on implementing an expansion plan which entails store relocations and store remodeling and new store openings. The Plan help the company enhance its in-store store productivity and to penetrate new markets. This in turn would allow Kroger to reach a larger customer base. Kroger has increased its capital outlay from $1.8 billion in 2007 to $2.1 in FY2009. The company is planning to spend around $1.9 to $2.1 billion during FY2010. Kroger hopes another by product is increase its operational productivity and reduced cost.

In-Store Health Clinic Program - Kroger is striving to better serve its customers by providing walk-in medical clinics and consumer health assistance in its stores. By partnering with The Little Clinic Kroger is able to offer the services of licensed nurses and certified physician assistants to diagnose treat and write prescriptions for common illnesses as well as for minor injuries. Kroger intends to implement the program throughout its stores and by doing so hopes to reap rewards of addition customer revenues.

Threats

Increasing Labor Costs - The majority of the Kroger’s 326,000 employees are covered by collective labor agreements negotiated with local unions affiliated with one of several different international unions. Kroger employees have benefited from recent increases in the federal minimum wage and it is predicted they will also benefit from health care reform. These changes present financial challenges for Kroger and have the potential to negatively impact its operating costs, as well as profitability.

High Debt Burden - Kroger may find itself in a position where a substantial portion of its cash flow must be funneled into paying down its indebtedness. A large percentage of debt has gone toward the implementation of its restructuring, remodeling and new store opening projects. The current economic climate has curbed the willingness of the financial industry to refinance debt. This reluctance, coupled with its $8 billion debt load may hinder future growth opportunities for the company.

Dismal Economic Projections - The slumping economy continues to have a negative impact of consumer expenditures. The first quarter of 2009 registered a drop of 60.5% in the US Consumer Confidence Index, the score of 26 in March 2009 as compared to the score of 65 during same period in the previous year. Current job data outlined in The Conference Board Employment Trends Index for April 2010 indicates a moderate recovery may be underway; however a slow recovery may continue to stifle potential expenditures by Kroger customers.

The Kroger Co. spans many states with store formats that include grocery and multi-department stores, convenience stores and mall jewelry stores. We operate under nearly two dozen banners, all of which share the same belief in building strong local ties and brand loyalty with our customers.

SWOT Analysis SandalsDr. Jill Novak, University of Phoenix, Texas A&M University

Company History

Sandals (Beaches) is a Caribbean Based Resort Hotel Chain, that was only recently established, but has proved to be highly successful, based on their innovative marketing concepts. This SWOT analysis is about Sandals.

In Montego Bay, Jamaica, in 1981, Gordon "Butch" Stewart, took notice of an old hotel sitting on Jamaica's largest private white sand beach, bought it, fixed it up and opened the hotel doors for business. With no prior experience, the investor envisioned a marketing plan for the resort to cater to couples only. Sandals Montego Bay became the first all-inclusive vacation concept, and by year-end of 1988, Sandals refined and perfected concepts, such as, swim-up pool bars, royal treatment with private beaches, breakfast in bed, and beachfront gourmet meals.

In 2004, the resort hit great heights with the creation of the company's ultimate all-inclusive butler service. With thriving expansions, Sandals currently holds locations in Jamaica, St. Lucia, Antigua, and the Bahamas, totaling 12 resorts. A long way from one, run down hotel on a private sandy beach! Today, the resort offers luxury package vacations, fine dining, night entertainment, scuba diving and water sports, golf and land sports, spas, and wedding packages.

Sandals' is committed to the resort's mission of ".attaching a premium to human resources and being among the most environmentally responsible and community friendly groups in the hospitality industry" (Sandals Resorts, 2007). Sandals resorts continue to penetrate the market with their couples' only concept, and have expanded this concept with accommodations for families through other beach resorts, branded Beaches.

Strengths

They created the idea of a couples only resort by introducing the Sandals resort; they also opened Beaches, a family luxury resort; Royal Plantation, three exclusive luxury oriented resorts with butler service and private airplanes; and the Grand Pineapple, a value resort for families.

All Sandals resorts are Green Globe Certified; it means that the staff is continually trained by local government run environmental organizations, they monitor and conserve all water use on

property, they use times on all electrical equipment such as; Jacuzzi blowers, steam rooms at the Spa, outdoor lighting for walkways, refrigeration equipment in the kitchens, etc., recycling food, and office paper, reducing the use of all hazardous chemicals and Inviting local craft vendors to the hotel at least once per week to display and sell their craft items.

Winner of thousands of awards, including:

Six time winner of the Gold Travel Life Award by Virgin Holidays. Nine time winner of the Baxter Travel Media award for Favorite Resort. 2008 Thomas Cook Award for Best Hotel Chain, and Best Wedding and Honeymoon

Hotel. TripAdvisor awarded them the 2007 and 2008 World's Most Romantic All-Inclusive

Resort. Travel + Leisure Magazine awarded them one of the top 25 hotels in the Caribbean for

2002, 2006 and 2008. Condé Nast Magazine Readers Choice Poll awarded them one of the top 25 Caribbean

Resorts for 2006, 2007; and the top 15 Caribbean Resorts and Spas for 2000, 2004 and 2005.

They have made the Condé Nast Magazine Gold List every year from 2000-2007. In 2007, they were given a World Savers Award by Condé Nast Magazine for their

Adopt-A-School program. In 2006 they won second place in the Caribbean Travel and Life Magazine Reader's

Choice poll for Best All-Inclusive Resort. In 2005 Modern Bride Magazine voted them the Favorite All-Inclusive Resort and in

2008 the Best All-Inclusive Resort chain. American Express gave them the Caribbean Environmental Award for Green Hotel of the

year, 2003, 2004, 2006 and 2007. They earned the Travel Weekly Magellan Award for Overall Eco-Friendly Resort in

2008. They were voted Travel Weekly America and UK Readers Choice for Best All-Inclusive

Resort, six years in a row. TravelAge Editor's Pick Award for Best Caribbean Resort in 2006, 2007 and 2008. World Travel Magazine award for Caribbean's Leading Resort Hotel Brand winner 14

years in a row; Best All-Inclusive Company winner 12 years in a row, World's Most Romantic Resort winner 11 years in a row.

2006 British Airways Best Independent Hotel Group. 2007 British Travel Awards for Best All-Inclusive Resort-13th year in a row-and the

Consumer Favorite All-Inclusive Resort. Porthole Cruise Magazine Editor-in-Chief Award for Best All-Inclusive Resort, 2005-

2007. Selling Long-Haul UK Travel Award for Best All-Inclusive Resort, and Best Hotel in the

Caribbean in 2003.

Sandals and Beaches resorts offer an innovative concept in their all-inclusive environments, contrived to give vacationers completely worry-free accommodations. Guests do not have to pay

for food, activities, babysitting, or entertainment while at their resorts. This allows guests to relax and more effectively utilize their vacation time.

They employ guest coordinators, trained to be experts in human relations, to make guests feel at home, coordinating the guest activities and making sure that everything works the way it should. They practice TQM throughout all levels of staff.

In the couples only market (that they created) they cater to different markets by offering three different levels of suites: the basic all-inclusive suites, the crystal suites that have their own private pool and the millionaire suites that are separate villas with butler service.

Weaknesses

They need to communicate the resort's view on environmental issues. For instance, Sandal's beach resort received a Green Globe Certification for commitment to natural resources, but they don't advertise or communicate it! In this economic downturn, Americans want to feel good about spending their money in socially responsible ways and the Green Globe Certification is highly prestigious.

They spent a huge amount of capital setting up a new resort in Barbados, only to have it sit there, unoccupied. The government of Barbados does not allow their beaches to be blocked off with fences, and Sandals requires that their guests be kept separate from other people to prevent crime and interlopers. They have been at odds about this issue since 2001 and their fully completed resort there has yet to see its first guest.

As with all tourist destinations, they are dependent on a healthy economy in countries whose citizens have more discretionary income to spend, and vacation regularly. The American trend toward "staycations" will cause their revenue to decrease.

They need to better position themselves against competition, other luxury resorts, Breezes All-Inclusive Resorts and other popular destinations for honeymoons and families.

Opportunities

Opening new resorts in Belize, or Hawaii, and some non beach areas such as Alaska and Colorado; they could also open resorts in other International settings such as China, Japan, Taiwan, France, Spain, Italy, Greece, Australia, Mexico and Brazil.

Promote their resorts at all Bridal and Child/Baby Expos in major cities, in order to reach the largest numbers of their target market. They can make use of high definition, interactive sales pitches that will allow honeymooners and families to book their vacations on the spot. Attending the National Wedding Show in London every February.

Creating a joint venture with David's Bridal, creating a presence on all of the major wedding planning websites, Parents' Magazine and on Nickelodeon.

During the economic downturn, they need to play up the "all-inclusive" angle of their resorts: creating a marketing campaign that emphasizes the money saving aspects of their vacation destinations, and the fact that guests don't need to worry about extra expenses.

July 2009 Sandals announced that they will partner up with Martha Stewart to Launch Martha Stewart Weddings Program in the Caribbean beginning in 2010. Guests will be able to book a Martha Stewart Wedding at any of the 12 Sandals Resorts or four Beaches Family Resorts. In addition, they will introduce Martha Stewart Crafts classes for adults at Sandals Resorts and craft camps for families at Beaches Resorts in 2010. The Futures Company (formerly Yankelovich), said that destination weddings are on the upswing with 31% of brides ages 21-30 planning to have a destination wedding; previous studies indicated that destination weddings represented 10% to 20% of all weddings.

Threats

One threat that cannot be controlled is the weather. Hurricanes are bad for business all over the Caribbean; however, they can offer guarantees so their guests will feel more secure when booking a vacation.

There are several ethical arenas that need to be understood when dealing with the tourism industry. If any of these becomes a problem or causes bad PR it can affect the company and eventually their profit margin.

Crime rates typically increase with the growth and urbanization of an area and growth of mass tourism is often accompanied by increased crime. The presence of a large number of tourists with a lot of money to spend, and often carrying valuables such as cameras and jewelry, increases the attraction for criminals and brings with it activities like robbery and drug dealing.

Tourism can also drive the development of gambling, which may cause negative changes in social behavior.

Many jobs in the tourism sector have working and employment conditions that leave much to be desired: long hours, unstable employment, low pay, little training and poor chances for qualification. In addition, recent developments in the travel and tourism trade (liberalization, competition, concentration, drop in travel fares, growth of subcontracting) and introduction of new technologies seem to reinforce the trend towards more precarious, flexible employment conditions. For many such jobs young children are recruited, as they are cheap and flexible employees.

The commercial sexual exploitation of children and young women has paralleled the growth of tourism in many parts of the world. Though tourism is not the cause of sexual exploitation, it provides easy access to it. Tourism also brings consumerism to many parts of the world previously denied access to luxury commodities and services. The lure of this easy money has caused many young people, including children, to trade their bodies in exchange for T-shirts, personal stereos, bikes and even air tickets out of the country.

SWOT Analysis Whole Foods

Dr. Jill Novak, University of Phoenix, Texas A&M University

Company History

In 1980 twenty-five year old college dropout John Mackey and twenty-one year old Rene Lawson Hardy created the Whole Food Company (WFC) in Austin, Texas. It was born with the idea to provide a grocery store featuring good, wholesome food; not a "health food" store filled with pills and potions. Sales doubled each year for the first four years. This SWOT analysis is about Whole Foods.

Strengths

Whole Foods Market (Whole Foods) owns and operates a chain of natural and organic foods supermarkets through several wholly-owned subsidiaries. The company's supermarkets are located in the US, Canada, and the UK. It employs about 52,900 people.

In 1984, Whole Foods Market began its expansion out of Austin. While continuing to open new stores from the ground up, they fueled rapid growth by acquiring other natural foods chains throughout the 90's: Wellspring Grocery of North Carolina, Bread & Circus of Massachusetts and Rhode Island, Mrs. Gooch's Natural Foods Markets of Los Angeles, Bread of Life of Northern California, Fresh Fields Markets on the East Coast and in the Midwest, Florida Bread of Life stores, Detroit area Merchant of Vino stores, and Nature's Heartland of Boston. In 2001, Whole Foods moved into Manhattan, generating a good deal of interest from the media and financial industries. 2002 saw an expansion into Canada and in 2004, Whole Foods Market entered the United Kingdom with the acquisition of seven Fresh & Wild stores.

The company recorded revenues of $7,953.9 million during the financial year (FY) ended September 2008, an increase of 20.7% over FY2007.

They have had 25 years of double digit revenue growth. They are the undisputed $4.7B Organic Supermarket Industry Leader. Originally, health food stores were small, expensive, and didn't carry a large variety of

products, Whole Foods changed all of this and they became the founding firm of this industry.

They offer catering , seasonal products and recipes, in-store events such as cooking classes, free tours around the store for customers with food allergies.

They have an amazing website with blogs, recipes, sale items, tips, podcasts and more. The website is well designed and explains the Whole Foods concept very well.

They are supported by complementary industries such as: Health Industry, Health Insurance Companies, Health Care Specialists, Fitness Centers and Wellness Programs.

Whole Foods has a commitment to selling high quality natural and organic products, satisfying and delighting its customers, and caring about their communities and environment. These three factors, in large part, are why customers are attracted to the brand.

They have a hip image and attract younger, more affluent shoppers. Their reputation for having the largest selection of organic, healthy, locally grown foods

of any supermarket worldwide makes them attractive to customers.

Weaknesses

Right now the US government subsidizes (provides money to support) the corn growers industry, but not the organic farmer-therefore companies not utilizing organic ingredients can grow more food cheaper and faster.

The number of organic food farmers is growing, but slowly and the supply chain for organic foods is underdeveloped and cannot meet the needs of the American food system.

They are known as "whole paycheck" because some of the foods are higher priced than other grocery stores.

Opportunities

The commitment to high quality natural and organic foods leads to higher prices than non organic and natural foods. As the world is becoming more aware of how important it is to eat healthy, Whole Foods need to be there to pull those consumers in to the stores. Many consumers have the misconception that healthy foods are more expensive then other foods, when in fact they do provide a store brand that is comparable in price to other grocery chains. Whole Foods needs to change the attitudes of those consumers.

During a time when the economy is in a downturn, Whole Foods has to find a cost effective way to give a little something back to customers that do buy on a regular basis and try to get new customers in the same tactic. Making a free rewards card--after so much bought or points accumulated a customer can get a discount on the next purchase or get something free from the store.

They could sponsor more town events (not just in-store events) to increase recognition of the brand name and make customers more aware of the products they offer.

They need to promote and build brand identity with organic foods, eventually leading to the idea that when people think "organic" they will think "Whole Foods."

Threats

Whole Foods has increased competition from existing supermarkets that are re-branding in order to compete with them-Wal-Mart, HEB Central Market (Texas, Mexico) Wegman's (New York), and Publix (Southern US). These stores have copied the atmospherics and some of the food items sold by Whole Foods.

The economic situation in the US is a threat due to Americans' desire to save money and that means groceries. Food is expensive and Americans' don't see the cost effectiveness of purchasing organic food.

Any changes in government regulations on organic food would impact consumer spending even further.

What a ride. Back in 1980, we started out with one small store in Austin, Texas. Today, we're the world's leader in natural and organic foods, with more than 270 stores in North America and the United Kingdom. What a long, strange trip it's been. We still honor our original ideals, and we think that has a lot to do with our success.

SWOT Analysis Smith and Wesson

Company History

Smith & Wesson Holding Corporation, a global leader in safety, security, protection and sport, is parent company to Smith & Wesson Corp., one of the world's largest manufacturers of quality firearms and firearm safety/security products and parent company to Smith & Wesson is based in Springfield, Massachusetts with manufacturing facilities in Springfield, Houlton, Maine, and Rochester, New Hampshire. This SWOT analysis is about Smith and Wesson.

Horace Smith and Daniel B. Wesson formed their partnership in 1852 in Norwich, Connecticut, with the aim of marketing a lever action repeating pistol that could use a fully self-contained cartridge. They went bankrupt and began again in 1856, when Smith & Wesson produced a small revolver designed to fire the Rimfire cartridge they patented in August of 1854. This revolver was the first successful fully self-contained cartridge revolver available in the world. Smith & Wesson secured patents for the revolver to prevent other manufacturers from producing a cartridge revolver - giving the young company a very lucrative business and established Smith & Wesson as a world leader in handgun manufacturing.

Strengths

Thompson/Center Arms, Inc., a premier designer and manufacturer of premium hunting rifles, black powder rifles, interchangeable firearms systems and accessories under the Thompson/Center brand. Smith & Wesson licenses shooter eye and ear protection, knives, apparel, and other accessory lines.

Smith & Wesson is the largest manufacturer of handguns in the United States and one of the most recognizable brands in the world. They manufacture and distribute a full line of firearms for defense, law enforcement, hunting and sporting.

They provide products that are utilized by virtually every police agency and military force around the world and The Smith & Wesson Academy is America's longest running firearms training facility for law enforcement, military and security professionals. Law enforcement personnel from every state and over 50 foreign countries have come to the Springfield, Massachusetts facility to receive state-of-the-art instruction, to prepare for and exceed the demanding needs of law enforcement. The academy's superior training gives today's police force the tools necessary to handle tomorrow's most extreme situations.

They are a company dedicated to research and development and have produced the first American made double action auto-loading pistol, stainless steel firearms and perimeter security systems and have driven product development for more than 150 years.

In 2009 they won the first ever ASIS Accolades Award for the Expeditionary Mobile Barrier (EMB) in the category of Most Transformational Product or Service. The EMB is a completely mobile barrier that can stop a 7,500-pound vehicle traveling 45 miles-per-hour. This product increases the likelihood that vehicle occupants will be unharmed. It is immediately resettable after impact, with few or no replaced parts. An adjustable net

allows the system to secure a variety of roadway widths without requiring additional parts.

Smith and Wesson's Universal Safety Response (USR) serves a variety of clients in the defense, transportation and petrol-chemical industries, as well as corporate facilities, airports, Fortune 500 companies, national laboratories and museums. USR's security systems are also used by the US Homeland Security and to safeguard high-risk facilities.

They are a leading advocate of the development and use of firearms safety devices, incorporated multiple safety features into each of their handguns, maintained the country's longest-running shooters training facility, promoted the NSSF "Child Safe" gun lock program nationwide, and they currently license numerous safety devices to the shooting sports market.

Despite the economic recession in the Unites States, sales grew 13.2% in 2008. They have a 70% market share in the handgun segment of the firearms industry in the

United States.

Weaknesses

Only 7% of their sales are produced from international venues. A vast majority of their sales are in the United States market, and while they are an international company, their sales and market share in foreign markets are low.

They do not dominate the hunting enthusiast market. From 2004 to 2009, sales of revolvers dropped from about 40% of the company's sales to

around 20%.

Opportunities

To diversify and add breadth to its brand, the firm licenses its name to makers of apparel, watches, sunglasses, gift sets, and more.

The creation of law enforcement products that do not injure public offenders; such as guns that shoot "bean bags" or "large pellets."

Technological advancements for this company are always leading to more opportunities-for instance they could create a gun that has fingerprint recognition capabilities and can only be fired by whoever programmed the gun.

Expanding its products in the areas of tactical and long-gun lines, as well as non-firearm products and services.

Threats

Their major competitors are Browning Arms, Glock and Ruger. Sales of firearms in the United States are based on laws passed by the government giving

citizens the right to carry weapons; however, this is a hotly debated issue and could change.

Expanding into foreign markets is challenging due to political and legal laws prohibiting the sale and use of weapons. In some countries only law enforcement is allowed to carry weapons.

Smith & Wesson is one of the world's most recognizable brands, and for good reason. Since we first opened our doors, we have focused on designing and manufacturing innovative solutions that are unparalleled in the field of personal safety and protection.

SWOT Analysis StarbucksThis SWOT analysis is about Starbucks.

Strengths.

Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.

It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.

Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.

The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'

Weaknesses.

Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.

The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Opportunities.

Starbucks are very good at taking advantage of opportunties. In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD.

New products and services that can be retailed in their cafes, such as Fair Trade products. The company has the opportunity to expand its global operations. New markets for coffee

such as India and the Pacific Rim nations are beginning to emerge. Co-branding with other manufacturers of food and drink, and brand franchising to

manufacturers of other goods and services both have potential.

Threats.

Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future?

Starbucks are exposed to rises in the cost of coffee and dairy products. Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to

the market entry of many competitors and copy cat brands that pose potential threats.

'Starbucks' mission statement is 'Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.' The following six guiding principles will help us measure the appropriateness of our decisions'