Swot Analysis: SWOT Analysis Of VSM Group
The variables that operate within an organizations environment can be divided into two parts- external forces and internal forces. Both of the external and internal forces of an organization can be analyzed by conducting a SWOT analysis, which is an important tool for auditing the overall strategic position of a business and its environment through identifying a business’s strengths and weaknesses and the opportunities and threats that it faces. Here, SWOT analysis tool will be operated to access and summaries VSM’s organizational position.
a) VSM Group enjoyed its historical and specialized reputation in the world market. Powerful brand awareness, specialized technologies of producing and developing household sewing machines, as well as abundant business experiences could make VSM stand at an enjoyable place in this industry.
b) VSM held the European patent rights for the sintered metal technology that can produce improved products.
a) VSM only manufactured household sewing machines that it can only seek profits in the domestic segment, and its development space cannot expand into professional …show more content…
Also, because VSM Group had no outstanding dominance in the cost aspect compare to the manufacturers located in the Far East, the organization adopted the differentiation strategy focus on unique products and services to generate its own competitive advantage. As VSM had been aware of the importance of the uniqueness and improvements in products as well as the marketing-based approaches, a number of strategies based on these two aspects had been carried out.
VSM used its strong creativity skills of product development and technology innovation to sustain its strategy which providing customers advanced products with innovative functions for their customers. The coming out of Designer I - a PC- controlled sewing machine could satisfy customers who pursing convenience and high-technology and make customers tend to be more brand-loyal which can defend VSM’s position.
For expanding after-market, VSM cooperated with software producer to develop software for PC-controlled professional sewing. It unfolded a new and rather convenient way for customers to exchange embroidery patterns through the internet or download them at the VSM website. This could increase customers’ interest on using sewing machines which could both establish and retain VSM’s customer’s loyalty and make after-market grow …show more content…
Its impressive competitive product offering, well future-built brand images, technology prior to competitors’ and strong distribution network act as ideal superiority that can it stand at a leading position in the world market. However, facing current fierce competition and market situation, building world-class production and services, improving the demand for sewing would be the crucial tasks for VSM. For pursuing and maintaining market leadership in the global market, VSM should keep on adopting valid, appropriate and differentiated strategies to improve its business