SWOT Analysis Yahoo!Would you like a lesson on SWOT analysis?

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.

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. Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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.

Williams-Sonoma SWOTCompany OverviewWilliams-Sonoma is a US based specialty retailer of higher-end lifestyle and home furnishing products. They sell their merchandise through three channels: retail stores, catalogs and six websites. It is headquartered in San Francisco, California. Would you like a lesson on SWOT analysis?

Their strong brand portfolio caters to an upper-class, higher-end consumer niche of the home furnishing and accessories industries. Their portfolio, focused on various demographic segments and varied customer needs, provides a competitive advantage.

The company’s core brands are Williams-Sonoma, Pottery Barn and Pottery Barn Kids.  

Williams-Sonoma focuses on kitchen-related cookware and other products including pots, pans, cookware, knives, storage containers, small electrical appliances, table linens, flatware and glassware. They also have higher-end private label food products.

Pottery Barn stores sell oversized, stuffed chairs, candles, mirrors, frames, pillows, blankets, rugs and window treatments and furniture.

Pottery Barn Kids is an extension of the Pottery Barn concept and focuses on children’s furnishing and accessories. Pottery Barn Kids also offer the option of customization of products.

PBteen targets teenagers with its bright colored, sport themed, customized and other theme-based lifestyle products.

West Elm’s products are more simple and modern than what is usually found in a Pottery Barn store. The merchandise is priced at ‘mass market’ points.

Williams-Sonoma Home targets high-end customers with its more formal furniture and home decor products.

In 2008, the company implemented a new retail inventory management system. This gave them a strong retail and operations system, as well as an advantageous distribution system. They are highly successful at logistics, inventory management of stores and delivery of stock through their catalogs and websites.

Weaknesses Similar products are available at a lower price point in big box stores such

as Target and Wal-Mart stores. Multiple retail channels increases proximity with customers, which in turn,

would lead to top line growth. However, the US home furnishings store industry is fragmented with 50 largest companies comprising 70% of the industry sales, making it a difficult industry to survive in.

The company has had declining profitability since 2006. The company’s operating profit and net profit declined from $345.1 million and $214.9 million in 2006 to an operating profit and a net profit of $313.4 million and $195.8 million in 2008.

The decline in profitability, operating cash flows and margins could hamper expansion plans which could erode the investor confidence in the company.

The company faced a copyright infringement suit in 2008, alleging that they used copyrighted designs for their rugs.

In 2008  the housing sector in the US experienced one of its most significant downturns in 40 years. This downturn resulted in substantial volatility in the financial markets and depressed growth rates in the home furnishings and accessories industry overall.

Consumer Confidence in the US declined in 2007-2010, due to lower sales of homes, rising fuel prices, a weaker labor market and stricter laws for borrowing money.

Opportunities

The company is working on restoring sales and the reputation of its core brands through a five pronged strategy: offering innovative, unique products to its core customers, capitalizing on the changing trends; improving its marketing and visual merchandising for a more exciting shopping experience; and is testing new shipping charges.

They are stressing value to attain competitive advantage, changing their product display and presentation in stores. This includes remixing the assortment, re-allocating floor space among categories, and improving in-store merchandising.

They increased retail leased square footage by approximately 8% in fiscal 2009 and also plans to expand or remodel additional 20 stores.

They are putting high emphasis on direct marketing in order to enhance customer reach. In FY2008, the company improved its online sales operations by implementing new functionality in DTC marketing systems, which enabled the company to reduce catalog circulation and improve the relevancy of its on-line marketing.

They have also begun to focus on cost cutting in order to obtain a competitive advantage.  They reduced the shipping rates of Pottery Barn products. Williams-Sonoma adjusted the shipping rates in its 2008 spring catalog. Reducing shipping rates could lend towards ‘Pottery Barn’ brand revitalization, acquiring new customers and also translate to growth.

Moving into a global economy could diversify risk and create a more recognizable brand name.

They can also consider partnering with Whole Foods, Inc., an organic grocery chain that caters to demographically similar customers.

Threats Williams-Sonoma faces intense competition from local, regional and

national retailers including department stores, specialty stores, mail-order retailers, discount and mass merchandize stores, and national chains. Their major competitors are Bed, Bath & Beyond, Crate and Barrel, Wal-Mart, Target, Home Depot, JC Penny, Haverty Furniture, and Cost Plus.

Any continued long-term slowdown in US housing market will continue to affect their sales and revenues. As sales of houses slow down, so does the sale of home furnishings, home improvement products and accessories.

SWOT Analysis Whole FoodsCompany HistoryIn 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.

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. Read more…

SWOT Analysis Wal-MartWould you like a lesson on SWOT analysis?

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).

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. Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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.

To watch the full Walmart SWOT video register FREE hereWeaknesses

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.

SWOT Analysis Toys "R" UsWould you like a lesson on SWOT analysis?

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.

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! Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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.

Weaknesses. These days, Toys “R” Us has no single and sustainable competitive

advantage, other than brand. In the US, its traditional stronghold, the company has lost its number one positions as toy retailer to Wal-Mart. Being large may not be enough, when customers can go to another large retailer and buy the same and similar goods, sometimes getting a better deal.

As with all retailers in Western society, Toys “R” Us is heavily dependent upon successful sales during the final quarter of the year. They need to make profit from Christmas. Retail is notoriously seasonal and Toys “R” Us is no different to other retailers. In fact it could be argued that toys are a key Christmas present product, so are even more likely to be dependent upon seasonal sales.

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.

SWOT Analysis ToyotaWould you like a lesson on SWOT analysis?

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.

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. Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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).

To watch the full Toyota SWOT video register FREE hereWeaknesses

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.

SWOT Analysis Time WarnerWould you like a lesson on SWOT analysis?

Strengths

D O MINA NT MA RKET S HARE

Time Warner is not only a dominant US company it is one of the world’s largest media companies. Its pre-eminence in the US market is evident in the publication of 23 magazines, such as, Sports Illustrated, Time, InStyle, Real Simple, People, Fortune and Southern Living. The company also boasts nearly 50 websites internationally, such as People.com, SI.com and CNN Money.com.

Slumping AOL RevenuesRecent data show a downward trend in revenues for Time-Warner’s AOL division. In FY 2008 AOL reported a drop in revenues from $4,165 in 2006 to $7, 786 million in FY2008, representing a negative compounded annual growth rate (CAGR) of 27%. The decline is

primarily due to the decrease in the number of domestic AOL brand subscribers and the sale of AOL’s German access business. Also, AOL revenues as a percentage of total revenues declined 17.8% during the same period. The declining performance of AOL may negatively impact the company’s overall revenue and profitability.

Opportunities

J O I N T A F F I L I A T I O N S A N D P A R T N E R S H I P S

The company has formed alliances with several leading companies in the media and entertainment industry. In October 2009, Warner Home Video (WHV) entered into a multi-year alliance with Sesame Workshop, a nonprofit educational organization. Under the terms of the agreement, WHV will exclusively distribute multiple Sesame Street titles, including the Sesame Street library.

In August 2009, Time-Warner and The Nielsen Company signed an agreement to provides Nielsen services to Time Warner’s broadcast, cable, syndication business units and affiliates, including Turner Broadcasting, The CW Television Network, HBO, Warner Brothers Domestic TV Distribution, Time Inc., RET Media and station WPCH. In addition, Time Warner and YouTube signed an online video distribution agreement, which allows Warner Bros. Entertainment and Turner Broadcasting System to program videos on YouTube using a Time Warner embeddable player.

MBC Group and Warner Bros. International Television Distribution (WBITD) signed a multiyear programming deal in April 2009. These are just some of the multiple partnerships which will enable the company to extend its reach and increase its subscriber base in the coming years.

Threats

C O M P E T I T I V E E N V I R O N M E N T

Time Warner has formidable competition in each of its major business segments. The company’s AOL Division must face off against such firms as Google, Yahoo and Microsoft. In addition, MySpace, Facebook and Fox Interactive Media also compete with AOL for internet based revenues. Also, other traditional media firms have begun to offer their own

internet services, among them are WPP Group (24/7 Real Media) and ValueClick. Broadband access providers also compete against AOL for internet subscribers.

Increasingly, Time Warner’s film entertainment business faces intense competition from new market entrees such as websites with internet streaming, user-generated content and interactive games. Alternative distribution systems such as cable and satellite provide competition for Turner Networks and Turner’s websites. With so many competitors in the industry there may be a scarcity of producers, directors, writers, actors and other skilled areas.

In recent years, competitors have launched new magazines and websites in the celebrity, women’s service and business sectors, these ventures compete directly with Time Warners’s People, InStyle, Real Simple, and Fortune magazines. Such intense competition as described above, could impact Time Warner pricing decisions and in turn effect revenues and market share.

U N A U T H O R I Z E D D I S T R I B U T I O N O F C O N T E N T

Time Warner is increasingly impacted by the piracy of its television, motion pictures programming, DVD, and video games. Piracy is on the rise due to technological advances which allow thieves to create, transmit and distribute high quality unauthorized copies of content. This unauthorized distribution has the potential to reduce Time Warner’s revenues. Time Warner is also vulnerable to content theft in countries where it operates if those countries have weak laws protecting intellectual property or enforcement is lax.

D E P E N D E N C E O N G O O G L E

Google is the main web search provider for nearly all of Time Warner’s AOL network and products. AOL has agreed to use Google’s algorithmic search and sponsored links on an exclusive basis through December 19, 2010. Failure to renew the agreement with Google will adversely affect the company’s operations. In addition any unilateral change Google may make in pricing, algorithms or advertising terms, could have a significant negative impact.

Time Warner Inc., a global leader in media and entertainment with businesses in television networks, filmed entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets. Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.Publishers Information Bureau rates Time Warner the largest magazine publisher in the US based upon advertising revenues received, while Nielsen Media Research and Media Metrix state that the company’s websites average over 29 million unique visitors monthly.

Time Warner’s AOL Web Content Services Division reached 75 million unique visitors in 2009 according to comScore Media Metrix data. AOL’s internet access subscription service is one of the largest in the US and Mapquest is one of the most prominent map and direction service in the US.

Consider also, Time Warner’s dominance of television programming. It distributes programming in more than 200 countries through its Warner Bros Television Group (WBTVG). In the US, Turner’s entertainment networks include TBS, with more than 90 million US households as in 2008; and TNT, with over 90 million households in the US.

Its presence even reaches into the contemporary cartoon genre such as the Cartoon Network (including Adult Swim, an overnight block of contemporary animation airing in 2008, which boasted approximately 97.7 million households in the US.

Time Warner is also prominent in the classic movie and cable television news areas. Its television news services, reached over 95 million US television households in 2008. Meanwhile, CNN operated 46 news bureaus and editorial operations, including 13 located in the US. In addition, Time Warner’s HBO is a pay television service (including its sister service, Cinemax), which collectively had approximately 40.9 million subscriptions as of FY2008.

S U B S T A N T I A L E N T E R T A I N M E N T P R O G R A M M I N G

Time Warner produces and distributes theatrical motion pictures, television shows, animation and other programming such as videogames. In addition, the company distributes DVDs containing filmed entertainment produced or acquired by the company’s various content-producing subsidiaries and divisions, including Warner Bros. Pictures, Warner Bros. Television, New Line, Home Box Office and Turner Broadcasting System. LEGO Batman, Speed Racer and Guinness World Records, and co-published Lego Indiana Jones are among the interactive videogames produced by Time Warner through its subsidiaries.

WeaknessesSubstantial Dependence on the US Markets Although, the company has operations across South America, Europe, Asia Pacific and Middle East, the US is its primary market. Over 80% of its total revenues come from the US. The slumping US economy may negatively impact demand for the Time Warner ’s products and services.

SWOT Analysis StarbucksWould you like a lesson on SWOT analysis?

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’ 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’ Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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.

To watch the full Starbucks SWOT video register FREE hereOpportunities.

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.

Sony SWOTWould you like a lesson on SWOT analysis?

StrengthsSubstantial Brand Identity

Sony is a corporate brand whose identity is deeply rooted and very well established in the minds of potential customers. The brand remains healthy despite dropping from 25th to 29 in name recognition according to InterBrands 2009 ranking. Interbrand valued Sony brand at $11 million.

Projected Growth in the Consumer Electronics Market

The Consumer Electronics Market is expected to grow at a rate of 7.2% annually to reach a value of $136,700 million in 2014. Sony is uniquely positioned to take advantage of this increase. As one of the largest global companies in the industry Sony has the capacity to tap into changes in consumer demands as they emerge. Sony’s recent reorganization has put digitally savvy and globally experienced staff in positions to maximize the potential seen in growth projections.

Strong Positioning in Emerging Economies

Sony is firmly entrenched in the so-called BRIC economies (Brazil, Russia, India and China). These regions are emerging markets and represent over 40% of the worlds’ population. The firm plans on following its model of success experienced in India where it

emphasized its television film, and music product content. The company has a goal of doubling its revenues in the BRIC markets.

ThreatsThe Continued Economic Slump

The negative economic conditions in The United States, Japan and Europe have had a disastrous impact on Sony. The company receives approximately 74% of its revenues from these markets. As the economic slump lingers, consumer confidence remains low and Sony has felt the impact in decreased revenues. Sony leadership has acknowledged that the downturn exposed weaknesses and vulnerabilities in the firm that have needed addressing for some time.

Impact of Strong Japanese Yen

Sony is vulnerable to fluctuations in foreign currency exchange rates and exposed to fluctuations in the value of the Japanese yen, the US dollar and the Euro. Recently, the Japanese Yen appreciated significantly against the US dollar and Euro. A stronger yen makes Sony’s products appear expensive in comparison and cuts into the value of overseas earnings. The firm acknowledges the need to implements effective hedging strategies to counter foreign exchange translation effects.

The Impact of the Black Market

Smuggled goods and counterfeit products have really plagued the electronics manufacturing industry in recent times. Counterfeit goods are projected to double to 18% of total world trade by 2010. In addition, China’s growing share of electronics production represents an increase in the number of potential counterfeit products in the market. These knockoffs, although cheaper and of less quality still the potential to divert revenues from Sony.

The Impact of Compliance Regulations

Environmental, health and safety compliance laws which impact Sony operations and production may be burdensome and have a negative impact on profits. To maintain compliance the firm must incur capital and other expenditures. Potential expenditures related to regulations are not limited to compliance, but may also be felt in fines and penalties in the wake of non-compliance.

The Origins of the SONY BrandThe Sony name was created by combining “SONUS,” the original Latin for “SONIC,” meaning sound, with “SONNY,” denoting small size, or a youthful boy. It was chosen for its simple pronunciation that is the same in any language.More . . .Global Diversification

Sony products and services are available throughout the world in approximately 200 countries and territories. The United States market accounted for 17.9% of the revenues, Europe (13.9%), and others (25.8%), while Japan consisted of the largest segment at 42%. This diversification helps to minimize the impact of adverse conditions that may arise in any one geographic region.

WeaknessesDownward Trending Revenues

Four major Sony division experienced revenue losses in 2009, specifically Electronics down 17%, Games down 18%, Pictures down 16.4% and Financial Services down 7.4%.In the U.S Revenues were down 15.4 %, while revenues in Japan fell 15.2%.

Poor Proximity of Production to Customers

Sony’s production facilities are located far from its customer base. Approximately 60% of the annual production in Japan must be distributed to for other regions. In FY2009, the group produced 50% of the electronics segment’s total annual production in Japan.

Substantial Retirement Benefit Commitments

The unfunded status of the pension liabilities (approximately $3.6 billion) increased at a rate of 62% over 2008. Sizeable unfunded post retirement benefits would force the company to make periodic cash contributions, diverting money away from production related uses.

OpportunitiesJoint Ventures and Strategic Acquisitions

Sony benefits from the flexibility to enter into key join ventures and execute key corporate acquisitions. For example, established a joint venture project with Sharp to produce and sell large-sized LCD panels and modules. Another example includes its alliance with Taiwan’s Hon Hai Precision Industry for the production of LCD TVs. Among recent acquisitions are the purchase of a TFT liquid crystal display (LCD) business from Epson Imaging Devices and Convergent Media Systems, which makes video integration solutions for the enterprise market.

SWOT Analysis PepsiCoWould you like a lesson on SWOT analysis?

Strengths Branding – One of PepsiCo’s top brands is of course Pepsi, one of the most

recognized brands of the world, ranked according to Interbrand. As of 2008 it ranked 26th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, and Sierra Mist.

Opportunities

Broadening of Product Base – PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia’s leading Juice Company, Lebedyansky, and V Wwater in the United Kingdom. It continues to broaden its product base by introducing TrueNorth Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers.

International Expansion – PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico.

Growing Savory Snack and Bottled Water market in US – PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest.PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million.

Threats Decline in Carbonated Drink Sales – Soft drink sales are projected to

decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline.

Potential Negative Impact of Government Regulations – It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings

in certain locations where its products are sold, a negative impact may result for PepsiCo.

Intense Competition – The Coca-Cola Company is PepsiCo’s primary competitors. But others include Nestlé, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice sales.

Potential Disruption Due to Labor Unrest – Based upon recent history, PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution.

PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. Take a journey through our past and see the key milestones that define PepsiCo. Read more…Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

The strength of these brands is evident in PepsiCo’s presence in over 200 countries. The company has the largest market share in the US beverage at 39%, and snack food market at 25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company

Diversification – PepsiCo’s diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1,000 million. PepsiCo’s arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes.This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates.

Distribution – The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services.

To watch the full Pepsi SWOT video register FREE hereWeaknesses

Overdependence on Wal-Mart – Sales to Wal-Mart represent approximately 12% of PepsiCo’s total net revenue. Wal-Mart is PepsiCo’s largest customer. As a result PepsiCo’s fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands. Wal-Mart’s low price themes put pressure on PepsiCo to hold down prices.

Overdependence on US Markets – Despite its international presence, 52% of its revenues originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labor strikes. Large US customers could exploit PepsiCo’s lack of bargaining power and negatively impact its revenues.

Low Productivity – In 2008 PepsiCo had approximately 198,000 employees. Its revenue per employee was $219,439, which was lower that its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees.

Image Damage Due to Product Recall – Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves. This followed incidents of exploding Diet Pepsi cans in 2007. Such occurrences damage company image and reduce consumer confidence in PepsiCo products.

SWOT Analysis McDonald’sWould you like a lesson on SWOT analysis?

Strengths McDonald’s has been a thriving business since 1955 and 20 of the top 50

corporate staff employees started as a restaurant level employee. In addition, 67,000 McDonalds restaurant managers and assistant managers were promoted from restaurant staff. Fortune Magazine 2005 listed McDonald’s as the "Best Place to Work for Minorities." McDonalds invests more than $1 billion annually in training its staff, and every year more than

250,000 employees graduate from McDonald’s training facility, Hamburger University.

Weaknesses Their test marketing for pizza failed to yield a substantial product. Leaving

them much less able to compete with fast food pizza chains. High employee turnover in their restaurants leads to more money being

spent on training. They have yet to capitalize on the trend towards organic foods. McDonald’s have problems with fluctuations in operating and net profits

which ultimately impact investor relations. Operating profit was $3,984 million (2005) $4,433 million (2006) and $3,879 million (2007). Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007).

Opportunities In today’s health conscious societies the introduction of a healthy

hamburger is a great opportunity. They would be the first QSR (Quick Service Restaurant) to have FDA approval on marketing a low fat low calorie hamburger with low calorie combo alternatives. Currently McDonald’s and its competition health choice items do not include hamburgers.

They have industrial, Formica restaurant settings; they could provide more upscale restaurant settings, like the one they have in New York City on Broadway, to appeal to a more upscale target market.

Provide optional allergen free food items, such as gluten free and peanut free.

In 2008 the business directed efforts at the breakfast, chicken, beverage and convenience categories. For example, hot specialist coffees not only secure sales, but also mean that restaurants get increasing numbers of customer visits. In 2009 McDonald’s saw the full benefits of a venture into beverages.

Threats They are a benchmark for creating "cradle to grave" marketing. They

entice children as young as one year old into their restaurants with special

meals, toys, playgrounds and popular movie character tie-ins. Children grow up eating and enjoying McDonalds and then continue into adulthood. They have been criticized by many parent advocate groups for their marketing practices towards children which are seen as marginally ethical.

They have been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America. In 2004, Michael Spulock filmed the documentary Super Size Me, where he went on an all McDonalds diet for 30 days and wound up getting cirrhosis of the liver. This documentary was a direct attack on the QSR industry as a whole and blamed them for America’s obesity epidemic. Due in part to the documentary, McDonalds no longer pushes the super size option at the dive thru window.

Any contamination of the food supply, especially e-coli. Major competitors, like Burger King, Starbucks, Taco Bell, Wendy’s, KFC

and any mid-range sit-down restaurants.McDonald’s is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. Read more…

Last updated July 2009Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

The business is ranked number one in Fortune Magazine’s 2008 list of most admired food service companies.

One of the world’s most recognizable logos (the Golden Arches) and spokes character (Ronald McDonald the clown). According to the Packard Children’s Hospital’s Center for Healthy Weight children age 3 to 5 were given food in the McDonalds packaging and then given the same food without the packaging, and they preferred the food in the McDonald’s packaging every single time.

McDonalds is a community oriented, socially responsible company. They run Ronald McDonald House facilities, which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. Ronald McDonald Houses are located in

more than 259 local communities worldwide, and Ronald McDonald Care Mobile programs offers cost effective medical, dental and education services to children. They also sponsor Olympic athletes.

To watch the full McDonalds SWOT video register FREE here They are a global company operating more than 23,500 restaurants in 109

countries. By being spread out in different regions, this gives them the ability to weather economic fluctuations which are localized by country. They can also operate effectively in an economic downturn due to the social need to seek out comfort foods.

They successfully and easily adapt their global restaurants to appeal to the cultural differences. For example, they serve lamb burgers in India and in the Middle East, they provide separate entrances for families and single women.

Approximately 85% of McDonald’s restaurant businesses world-wide are owned and operated by franchisees. All franchisees are independent, full-time operators and McDonald’s was named Entrepreneur’s number-one franchise in 1997. They have global locations in all major airports, and cities, along the highways, tourist locations, theme parks and inside Wal-Mart.

They have an efficient, assembly line style of food preparation. In addition they have a systemization and duplication of all their food prep processes in every restaurant.

McDonald’s uses only 100% pure USDA inspected beef, no fillers or additives. Additionally the produce is farm fresh. McDonald’s serves 100% farm raised chicken no fillers or additives and only grade-A eggs. McDonald’s foods are purchased from only certified and inspected suppliers. McDonalds works closely with ranchers, growers and suppliers to ensure food quality and freshness.

McDonalds only serves name brand processed items such as Dannon Yogurt, Kraft Cheese, Nestle Chocolate, Dasani Water, Newman’s Own Salad Dressings, Heinz Ketchup, Minute Maid Juice.

McDonald’s takes food safety very seriously. More than 2000 inspections checks are performed at every stage of the food process. McDonalds are

required to run through 72 safety protocols every day to ensure the food is maintained in a clean contaminate free environment.

. McDonald’s was the first restaurant of its type to provide consumers with nutrition information. Nutrition information is printed on all packaging and more recently added to the McDonald’s Internet site. McDonalds offers salads, fruit, roasted chicken, bottled water and other low fat and calorie conscious alternatives.

SWOT Analysis KrogerWould you like a lesson on SWOT analysis?

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.

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. More . . .

Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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.

SWOT Analysis NintendoNintendo started back in 1889. Would you believe that the business started by making playing cards? Through the years, the company progressed into the manufacture of toys and games and then ultimately to the manufacture andmarketing of electronic games. Early popular products included Nintendo 64, and Game Boy which was introduced in

Japan in 2001. Popular current products include Wii fit and derivatives of the DS portable video game player. Would you like a lesson on SWOT analysis?

WeaknessesAs you might have noticed by reading other SWOT analyses on the marketing teacher website, such a large supplier and manufacturer is largely dependent on its own supply chain. So if suppliers are overseas then it is more difficult to manage the supply chain, and the business is exposed to currency fluctuations and the economic climates in other parts of the world. The lack of a single key component for whatever reason would be a problem for Nintendo.

Margins are very tight in the gaming industry. You might have heard rumours that the Sony PlayStation 3 is manufactured and sold at a loss. Console and games manufacturers need to make sure that it is their device that is in the home of the consumer.

There are many rumours that Nintendo’s margin per unit is low and that this may cause them some financial difficulty.

OpportunitiesThe main opportunity to games manufacturers lies in the opening of many new small and large segments. Players are getting older and younger. For example, the average age of

gamers in the United States is now over 35 years old. As already mentioned, the Nintendo Wii gives the business access to many generations of gamers, regardless of class, culture and income. The gaming industry now churns far more cash than the movie industry, and this is set to continue.Gaming today happens online. Did you know that more than 500 million homes will soon have access to broadband Internet? That’s 500 million gamers ready to buy Nintendo products, potentially. So products, which are Wi-Fi and Internet enabled are going to be popular. Nintendo is in this space, and has a competitively positioned offering.

Threats

Who knows where the entertainment industry will go next? If there can be a migration from TV and movies to online gaming, there could also be a new and emerging technology in the future. Also who knows whether consumers will swap from Sony PlayStation, to Xbox, to Nintendo and so on? So consumer choices in the future might change. Nothing is ever certain in business.

The cell phone market saw that consumers wanted new products every year. Now some consumers change their mobile phone at very regular intervals. This would be an example of very sharp and short customer life-cycles. The same will be the case for the gaming

industry, with consumers changing their preferences and games changing in popularity, more and more quickly. As soon as one product is in the market , its replacement is off the drawing board being prepared for the shops.As with all of the global businesses discussed on this website, Nintendo will be exposed to changes in currency values and the global economic climate at that time.

Competitors will be Nintendo’s biggest threat. Sony and Microsoft have their own particular competitive advantages which Nintendo will need to offset. These three key players will fight it out over the next few years, although there may benew entrants from China or India as

their economies become more consumerist.StrengthsOne of the businesses main strengths is the fact that it is truly global has a geographical presence in most corners of the world. Manufacturing is still primarily undertaking in Japan, although distribution networks exist worldwide. A global business means that the

company is not over-reliant on specific markets and therefore its business risk is reduced.The Nintendo brand   and logo is adopted worldwide as a major electronic gaming brand.

Just think how far the business has progressed from the Nintendo 64 to the GameCube to the Nintendo DS and finally to the Wii. They have worked themselves into new and interesting segments. For example, the Nintendo DS is ideal for travel as well as a handy device to keep children entertained. The Wii is a family entertainment device and also has niches for keep fit and sports. Ultimately, the devices have become well-known household names.