A SWOT analysis is a method used to illustrate the current position of a business. The model helps identify the strengths, weaknesses, opportunities and threats of an organisation. The model below is an analysis of the current position of Brompton Bicycles. Brompton Bicycles is a manufacturer of folding bicycles and are based in London.
One of the strengths that the company has is its good quality brand and product. Their products are light and travel friendly as they are folding bikes making them very unique and popular with people who commute a great deal. This leads to the next strength which is the company’s wide target market. People who tend to commute daily to work or university, who have caravans and boats and anyone who would love to own a bike that could mould in order to fit into a size of a suitcase would benefit from their products. Brompton Bicycles marketing strategy is also considered as strength as so far their marketing has all been by word of mouth. The company also benefits from well trained and skilled staff as the country is lacking in companies with traditional manufacturing skills. Brompton Bicycles has only one weakness which is that it has great difficulty in meeting demand as a result of losing market share and slow-moving production methods. The company can benefit from a number of opportunities for example expansion in other countries other than just U.K, USA, Ireland and China. Marketing within the social media would also be favourable as effective marketing will allow the company to reach more of its potential customers.
Finally, the major threat that Brompton Bicycles is facing is that other competitors within the same market could steal the brand and charge better prices therefore, in effect leave the company with the risk of losing its customers.
First of all, Brompton would need to work on its weaknesses and threats in order to move forward to business success. If the business is having difficulty in meeting demands then ultimately, they should look into stocking up on top selling products. Once the company is out of stock of a product it shows that they don’t understand customer demand. Competition can affect a business drastically if not addressed. They could end up stealing the brand of the business and charging better prices. Brompton needs to keep in mind that their customers pay for more because they are receiving quality products. If Brompton choose to drop their prices to keep customers, it becomes harder to put them up again. In addition, it will also lower the value of the brand and product. Quality is what sets Brompton apart from its competitors. Brompton have a very strong brand therefore all they need to do is shout about them (Stening, cited in Smith, 2008). In order to do this effectively, they would need to work on their marketing plan. The company should target social media for example creating a Facebook, Instagram and Twitter as these networking websites will enable them to reach out to more customers not only in the UK but internationally.
Many businesses use these networking websites in order to bring awareness to their business and products and it is also a good way of interacting with your customers on a more personal level. The more people you have liking your page and leaving comments on your page, the more customers and sales it will attract. This form of marketing is what helps to imprint a brand in the minds of customers Another recommendation in terms of marketing for the business would be to introduce promotions on their products and services. An example of this would be to offer a discounted price on their products for a limited time. This would create urgency for their customers to respond to the new sales promotion before the offer expires. Furthermore, having competitions helps generate more buzz and sales as it entices customers to join contests in order to win prizes. In conclusion, Brompton Bicycles current situation shows potential to be successful in the future. By working on the issues they are facing efficiently and systematically, they could increase in sales and customers immensely. For example, with clever marketing and keeping up with stock as these are their main priorities for the future.
PART 2 SUMMARY
The steps and procedures I followed in writing the analysis in Part 1 were by first identifying the SWOT of the business. Once I had done this first step I moved on to focusing on what the business could benefit from and what would help the business grow. I then arranged my work in a SWOT table and paragraphs making sure my work flowed well and included referencing to back up my work.
After having studied LB160 Book 1 I was able to recognize the internal and external factors of the business more efficiently while before I would have found it difficult working out which is which. It also helped me work through my essay in order and effectively whereas if I was having difficulty with a certain task, I would move on to the next one and find it harder to complete it once going back to the previous task.
I feel that my procedure during this TMA worked out to be very effective because I was able to go through my assignment in an organized order and completed each step to the best of my ability. I proof read my work to make sure it is also within the word limit and made sure I did not make any grammatical errors along the way as well as included in-text citations where necessary.
The feedback from my tutor for my first TMA helped me a great deal as she helped me understand the difference between writing an essay using informal and formal English. She also told me the correct way to present my essay for example line spacing and grammatical errors which I applied to my work. As well as giving me critical feedback I also received a lot of positive feedback from her which motivated me to perfect my skills and do my best for this TMA. I made sure to work on all four points of my essay which are source material, structure and development of the text, academic writing style grammatical correctness and finally quality of presentation.
One of the most important things I have learned during the process of writing this study analysis is the importance of SWOT analysis’ and how reviewing a business’s current situation regularly can help gather meaningful information in order to maximize their potential. It helps a business to set achievable goals and objectives and produce practical and efficient outcomes in order to effect long lasting change. I also learnt about the importance of marketing within the business. Effective marketing allows a business to reach its potential customers by fulfilling their needs and expectations at the right time. The bottom line goal for most businesses is to increase revenue and this could all be achieved if you focus on marketing successfully to your audience.
Smith, P. (2008)”Bike maker prepares to step up a gear: Brompton wants to keep up with the competition without its folding bicycles losing their uniqueness”, The Daily Telegraph, 1 April, p.11 The Open University, (2009), Resource Book 1 – Analysing Business Cases, Milton Keynes, The Open University Donohue et al, (2013), Book 1 – Analysing Business Cases, Milton Keynes, The Open University