Assignment on: SWOT analysis Of Aarong.

Prepared By: Rifat-E-Mansur Roll: 07882508

STEP 2:
DRAW CONCLUSION CONCERNING THE OVERALL BUSINESS SITUATION:
The Aarong has an attractive set of resource strengths. It has strong core competence and distinctive competence. The companys strengths and capabilities are well matched to the industry key success factors. But it has to add adequate power to its strategy and need more or different strengths because the companys current strengths and capabilities may be matter in the future. The companys weaknesses and competitive deficiencies are serious. These are not inconsequential but readily correctable. So one or more can prove fatal if not remedied soon. Some of the companys weaknesses in areas are related to the industrys key success factors. There are many weaknesses that if uncorrected, then keep the company from pursuing an otherwise attractive opportunity. It has important resource gaps that need to be filled for it to move up in the industry rankings and /or boost its profitability.

The companys resource strengths and competitive capabilities can lightly outweigh its resource weaknesses and competitive deficiencies by an attractive margin. The company has attractive market opportunities that are well suited to its resource strengths and competitive capabilities. But the lack of resources and capabilities can pursue any of the most attractive opportunities if corrected.

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

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The attractive and unattractive aspects of the company are given below: Attractive aspects
Zero production damage Market advantage Expand its business globally Start online business New distribution channel

Unattractive aspects
Higher price Inability to supply on time Lack of proper training of workforce

Competitors analysis of Aarong:

Competitor analysis in marketing is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. Aarong has its own version of the competitive analysis and its function is clear: to line up your product with other products and show where yours falls short and where yours is superior. Each industry brings a different spin to this old favorite and user experience design has its own set of criteria by which to judge competitors.

Figure: Competitors Analysis of Aarong.

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From the above diagram it is seen that Aarong has competitive advantage over its competitors on almost every factors. Only few companies have ability to chase some sort of advantage like Aarong. Such as Rina Latifs product features, qualities and innovativeness, Kay-Kraft and Anjans supplier, Rangs color and Khubsoortis cost.

Assessment of whether the Company is stronger or weaker than Key Rivals:

The assessment of companys overall competitive position involves answering two questions: 1. How does a company rank relative to competitors on each important factor that determines market success? 2. Does a company have a net competitive advantage or disadvantage vis--vis major competitors?

Assessing the Aarongs Competitive Strength vs. Key Rivals:

To assess the Aarongs competitive strength vs. key rivals we have to follow the following steps: 1. List industry key success factors and other relevant measures of competitive strength. 2. Rate firm and key rivals on each factor using rating scale of 1 to 10 (1 = very weak; 5 = average; 10 = very strong). 3. Decide whether to use a weighted or unweighted rating system (a weighted system is superior because chosen strength measures are unlikely to be equally important). 4. Sum individual ratings to get an overall measure of competitive strength for each rival. 5. Based on overall strength ratings, determine overall competitive position of firm.

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Key success factors / strength assessment

Quality/ product performance Reputation/ image Manufacturing capability Technological skills Dealer network/ distribution capability New product innovation capability Financial resources Relative cost position Customer service capabilities Unweighted overall strength rating

Strength Rating ( scale: 1 = very weak; 5 = average; 10 = very strong ) Aarong 9 10 6 8 8 9 8 6 7 71 Rival 1 5 7 9 5 6 4 10 10 7 63 Rival 2 5 3 5 3 5 5 3 1 3 33 Rival 3 7 6 6 8 4 4 5 4 4 48

Table: An unweighted competitive strength assessment.

The above table provides an example of competitive strength assessment of Aarong, using the hypothetical measurements against three rivals. Summing a companys ratings on all the measures produces an overall strength rating. The higher a companys overall strength rating, the stronger its overall competitiveness versus rivals. The bigger the differences between a companys overall rating and the scores of lower-rated rivals, the greater its implied net competitive advantage. Conversely, the bigger the difference between a companys overall rating and the scores of higher-rated rivals, the greater its implied net competitive disadvantage. Thus, Aarongs total score of 71 signals a much greater net competitive advantage over rivals. So after considering all things, we can say that the overall situation of the Aarong is very strong.

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STEP 3:
ACTIONS FOR IMPROVING COMPANY STRATEGY:

1. All competitive capabilities need to be strengthened immediately, so as to add greater power to the companys strategy and boost sales and profitability. Some new types of competitive capabilities need to be put in place for better respond to emerging industry and competitive conditions. Such as: Investment in Research and Development to develop new product line. Make efficient inventory management and increase productivity. Find potential task force to expand business by setting new physical assets. Take order and sell product using internet. Form partnership and alliance to compete. Develop and deliver specialized service on segmented basis. Improve workforce to expand globally.

2. The following actions should be taken by the company to reduce its competitive liabilities: Make ability to supply on time. Build structured collection and distribution channels for the organization. Have to Charge reasonable prices. Provide proper training to its workforce. Open branches in rural and semi-urban areas.

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

3. All market opportunities should be top priority in future strategic initiatives because these are good fits with the companys resource strengths and competitive capabilities, present attractive growth and profit prospects, and /or offer the best potential for securing competitive advantage.

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4. The following actions should be taken by the company to guard against the threats to its well being: Adopt product differentiation and low cost provider strategy. Focus on acquisition Strategy. Invest on modern technology. Revamping the value chain to eliminate or bypass some cost producing activities. Emphasis on controlling of cost drivers. Create demand in the mind of customer for its products. Innovate and produce superior products than rivals.

So at last we can say that, the final piece of SWOT analysis translate the diagnosis of the companys situation into actions for improving the companys strategy and business prospects.

References:
1. mdshossain.wordpress.com/2009/03/18/competitors-analysis-aarong/ 2. Crafting and executing strategy 16th edition Thompson/ Strickland/ Gamble.

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