It is always fundamental for a company’s administration to perform a thorough analysis of the entire company’s threats, opportunities, weaknesses, and strengths before the planned resolution of breaking wholly into the international market is made. Therefore, in this case, a SWOT analysis would be an absolute important tool which will facilitate the management in determining the present position of the ToolsCorp Corporation so as to achieve a comprehensible picture of its capability to battle in the international market.
Technological leadership: The Corporation has stayed a stable manufacturer of microwaves, lawn furniture, lawn mowers, power tools and these tools have been top class due to the company’s unique technology as it puts it within a tactical competitive spot in the Tennessee domestic market. Technological leadership has been amongst the internal company’s strengths which for a longtime have helped it to produce exceptional products as compared to those presented by the competitors.
The corporation’s culture: The Corporation has a practical and workable culture which necessitates innovation as well as creativity amongst its personnel. The corporate culture for the company is usually articulated in the phrase, “Working from Within to Tap the Best”. The culture necessitates the choice and recruitment of a workforce which is highly knowledgeable and skillful and thus producing a high quality end product.
The company has weaknesses which prevents it’s from achieving its full potential and the main weakness is that it lacks a firm marketing strategy. The corporation apparently doesn’t carry out insistent marketing campaigns via the major media like phones, television, radio, and the internet. Therefore, the products sales have been declining since the public isn’t well informed of the corporation’s products.
The company enjoys a major opportunity in that there is actually a high require for cordless equipments all over the world and particularly in the sector of construction as they guarantee effectiveness while carrying out a project. Also, the company enjoys quite a superior brand loyalty.
The company seemingly is threatened by a rigid internal and external competition in the tools and construction industry and more so the escalating quantities of imports from China. Makatume and S&W corporations offer quite lowered priced goods and therefore the market with time will probably shift into buying their products.
The management of ToolsCorp Corporation recommends that the tools company ought to break towards the international market environment and this poses strength to the company in that it will increase its market and consumer base towards a global niche and therefore a direct increase in total sales volume which is converted into revenue increase.
Seemingly, this undertaking poses a weakness in that the local market in the country is yet fully exploited and therefore focusing on global market will make the corporation lose potential customers locally. Cordless technology is actually new in the market thus will present a major opportunity for the company in exploiting the global markets. The mounting strength and availability of differentiated and cheap products in the market presents a big threat.
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One Year Strategic Objective
All business corporations are founded with the aspiration of operating and developing in order to grow market domination, and furthermore increasing sales plus profits. Nevertheless, the realization of such objectives is by no means straightforward for any trade organization.
Therefore, the strategic objectives for the ToolsCorp Corporation to be set are meant to uphold and advance the company’s strength and its competitiveness globally. The strategic objective for one year include: introduce the subsisting merchandise into the fresh market, enhance advanced service delivery toward the customers, and enlarge the retailing or sales to the already existing customers. For the company to fully achieve the above objectives, it will carry out research on the whole market trends and presumably increase its products quality. The research may face limitations or even increasing the products’ quality might be expensive. In evaluating the objectives, the company ought to analyze its annual sales.
Five Year Strategic Objective
The corporation’s three key objectives which are to be accomplished by the ending of 5 years include: to implement operational tasks, introduce new merchandize in the global market, and further expand the corporation. During the implementation of the above objectives, the company will analyze its present position in some selected regions plus its environs. Development of a consumer strategy with respect to market modifications will be put in place. The impact of this objective is that sales will gradually increase, and market diversifications will be attained. In evaluating the 5 year objective, the corporation will estimate the expansion budget to reduce financial setbacks.
Ten Year Strategic Objective
The ten year span strategic objective of the corporation includes: to become the top supplier of merchandize globally, diversification of the variety of products, and fully entering the international market. In implementation, the corporation will integrate the marketing approach of goods efficiency and promotion with top notch customer services. The global market is liberal and therefore stiff competition for capturing the higher market share and this may pose a threat. Therefore, products promotion through all possible means like advertising will surely make the public well informed. In evaluation, the company has a very strong strength in that it has the finances required to promote its product to the public. ToolsCorp Corporation will be able to achieve the entire above stipulated strategic objective if at all it follows them to the latter.