Quicksilver, SWOT Analysis Example

There are several opportunities in the environment that become potential opportunities only if the organization utilizes its resources well. The opportunities become beneficial to the organization only if the leaders decide that it is an appropriate opportunity to pursue. SWOT analysis gives the company an overview of how they are performing and the areas that need to be improved. This analysis enables executives to distribute resources to areas that need improvement and research. Internal environment of a business is one with direct impact on the business. The main factors contributing to decision making processes and strategy application include mission, vision and objective, human resource, internal relations of power, image of the company and brand equity among others. External environment is the one that has indirect influence on business activities hence, these factors are uncontrollable. This is divided into micro (suppliers, financiers and public) and macro environment (socio-political, economic and technological).

Strengths

Strengths are those that determine the strong points of the organization. The strong points include both the external and internal customers. Strength is a resource that is an advantage to the organization as compared to the competitors. The analysis of Quicksilver’s customers conveys the reason for the purchase of their products. It shows that the reason for their purchase is because of the value and the technicalities that the products have. Quicksilver’s authenticity is reflected in the products they produce that are remarkably innovative (Hamanaka, 2011). It is also in their international points of sales, and in the events, that it sponsors people. Quicksilver is a company that has a reputable brand name, and it has a well established promotion. This helps have a competitive advantage over the other competitors. The company also has a foundation that aims to benefit and enhance the standards of living for all its consumers.

Weaknesses

A weakness is a deficiency or limitation in an organization’s resource. This is in relation to those of the competitor Company and can affect the effective performance of the organization. An organization’s weakness is determined not only form the organization’s point of view, but also from the customers’ view. Quicksilver is a company that has not established many branches in many countries. This gives its competitors, Billabong, a competitive edge over Quicksilver. The dilemma of cash flow, which is self-created, posed as a weighty problem due to aggressive plans of expansion performed by management. Commodity prices (Millis, 2009) ran up, but the company exhibited irrational degree of exuberance and posed as a challenge even for those with best solutions. This factor hinders growth and development of the company and thus, contributes to the minimal extension plans formulated by leaders.

Quicksilver’s earnings are seasonal, and it is not able to sell its products in other countries at different seasons. This is a weakness to the company because they are not able to maintain their staff personnel. Therefore, customer base is interfered with, and profits of the company are also regulated. Instability of profit growth patterns results from insufficient funds and resources allocated to production processes in the company. Its distribution system is also not as defined as that of the competitor, Billabong. Quicksilver’s marketing and promotions departments have failed to compute data reflecting on annual performance and systems of distribution and thus, no valid conclusion can be retrieved concerning these issues.

Opportunities

An opportunity is an organization’s foremost situation. Customers feel that the Billabong Company does not have enough shops for all its consumers and hence, they do not feel the convenience to buy from the available stores. The Quicksilver Company should take this as an opportunity to open several shops. They should also try to produce functional and quality products which are affordable. They should conduct a research on quality of their goods giving reference to target market (Howe, 2010).

A research and development department should be established in order to cover the large population targeted. They will give a detailed summary the company needs in order to increase the customer base. Their sports products have enabled the company to grow in the market. It has also given it a chance for growth in the future. What the company needs to do is to re-position its brand name. Brand name is a strong opportunity for growth and expansion of the company since customers look at how attractive the logo or brand ascribed to goods. Quicksilver needs to grab this opportunity and improve, on its brand name, to manage the problems encountered during advertising.

They should increase on the service and product quality so as to ensure that, their consumers get value for their money. Businesses run because of customers, and thus, Quicksilver needs to augment on the manufacture of merchandise and services to capture the demands of their customers. They should employ staff personnel who will interact well with consumers to be able to identify the emerging problems; and solve them in time before competitors use that against them. This is an opportunity for this company to embrace and major in because the returns will increase sales and profits. Customer-company relations need to be strengthened because it increases the clientele base and promotes loyalty among its customers.

Threats

These are the situations that are most unfavorable to the organization. They substantially affect the organization’s current or desired situation. Example of threats such like new or revised regulations, entry of new competitors, technological changes, slow market growth and increased bargaining power of suppliers and buyers. The fact that the Billabong Company has many established branches is sufficient to be a risk to the Quicksilver Company. This will mean that their target market has expanded and covers a vast area hence, identifies the desires and inclinations of their customers. This exhibits signs of growth and maintaining high standards to serve their customers needs.

The unpredictability of customers is a threat for expansion and growth of the company because, the customers keep changing. As a result, the company needs to change their preferences and tastes to meet their demands. Competition from the established companies is a menace because they have not expanded their territories to cover a vast majority of individuals in the globe. Consequently, they are not able to support their theories to customers on how to meet their demands because of low production and expansion problems. The ever changing fashion trends are also a menace to the company that has hindered expansion plans and reduced the number of customers targeted.

Media influence affects growth of the company, but for Quicksilver, this has not been given emphasis because they lack the required resources. Majority of customers trust advertisement of products and services done by companies. Additionally, it gives the company a reputable, solid foundation in relation to customer base, which remains unchanged for a time period. Influence of media should be given emphasis due to changing trends relating to communication. Billboards need to emphasize the need of buying the products that add value to people’s lives.

References

Companies in Focus: Quicksilver, Ultra and Denbury. (2007). Bernstein Research pp. 52-67.

Hamanaka, Kari (2011). “Quiksilver Comeback: New Stores Planned”. Orange County Business Journal 34 (24); 65.

Howe, Aleshia. (2010). Quicksilver sets new production record in quarter. Fort Worth Business Press 22 (46); 19.

Millis, Alex. (2009). Quicksilver moves reflect industry shifts as prices fall. Fort Worth Business Press 25 (41); 34.