SWOT Analysis
One of the strengths of Helioprints is that it has enhanced marketing strategies that will enhance its ability to compete in the European market. In addition, it has reliable suppliers, which means that with effective inventory management, it can meet the demand of the posters in the market.
In contrast, the company’s management has been receiving significant number of complaints associated with its posters. Tersely, it will need to ensure that it meets the specifications of its customers to acquire a large base of loyal customers. Nevertheless, the complaints have been reducing its revenues and profit margins.
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The market has a number of opportunities for growth. For instance, the pricing strategies surpass those of the rivals in the market. The opportunity is associated with the amassing a larger market share in the industry. Furthermore, suppliers are anticipated to improve their efficiency through adoption of various technologies critical to their operations.
On the other hand, the firm faces some threats particularly with other rivals. It is anticipated that other firms will try to leverage their market share through lowering their prices in the market. Additionally, the suppliers may opt to increase the prices of the raw materials to cater for the costs of adopting new technologies.
Hyper Growth Strategy
The firm has already adopted the strategy of price differentiation in the market. On this note, the firm will need to ensure that it can attract more customers in the market. Regarding the posters category, one of the strategies is ensuring that there are minimal complaints. The rationale behind choosing this strategy is that while most customers complain about various aspects of the posters, the firm incurs costs, which reduces the revenues generated. In addition, unsatisfied customers are not likely to return for more posters because of their past experiences. Additionally, using the products and services of the ideal suppliers will have the desired outcomes for the firm’s revenue generation goals.
Investing in the Category
There are a number of advantages associated with investing in the category. For instance, focusing on the provision of high quality products with minimal complaints indicates satisfied customers. On this note, satisfied clients tend to become loyal to the firm, which has various benefits. For instance, the marketing costs of the firm will be reduced significantly because loyal customers tend to purchase more products from the firm. In addition, it is imperative to note that some of the customers will refer their business associates to the products of the firm because of the efficiency associated with their delivery. On the same note, identifying reliable and efficient suppliers will provide the firm with an incentive of reduced inventory management costs and enhanced efficiency, which will streamline the business’ operations.
Risks and Challenges
One of the notable risks is the costs associated with the reduction of the complaints. On this note, the company will need to invest in a number of technologies that might be costly. Evidently, the costs of improving efficiency will have a negative effect on the profit margins although it will not have any effect on the revenues generated by the firm. Furthermore, the firm will become more reliant on some suppliers, which is not tactical considering the current market environment that may jeopardize their operations.
Overview
One of the uncertainties associated with this category is whether the market is seasonal. On this note, some of the strategies that have been highlighted may be affected and their impacted impeded by various market conditions. For instance, seasonal customers may have different requirements for their products and therefore the firm will need to come up with regular changes to the strategy.
