Waterworld Case Study

CASE STUDY:

WATERFORD, WEDGWOOD PLC

SUBMITTED TO:

PROF. CHAN

SUBMITTED BY:

BAUTISTA, MARINELLE

LAWAS, JAY-AR

MAGDASAL, SANDY

MANCERA, JOLINA

MESINA, JOWEELYNNE

MISA, KIMBERY ROSE

PASCUAL, DIANE PAULA MAE

SANTOS, CHAIRA GRACE

AREAS OF CONSIDERATIONS

1. S.W.O.T. ANALYSIS

• STRENGTHS

1. Experienced artisans and craftsmen
2. Name and Credibility
3. Product Quality

• WEAKNESSES

1. Product Design
2. Vision and Mission Statement
3. Limited Market Visibility
4. Limited manufacturing facilities

• OPPORTUNITIES

1. Modern Technology
2. Expansion of Market Visibility
3. Expansion of Factory/Manufacturing Facilities

• THREATS

1. Price Competition
2. Substitute Products
3. Changing Demand

1. S.W.O.T. MATRIX

1. PORTER’S FIVE FORCES ANALYSIS

1. Rivalry Among Competing Firms (High)

• Rivalry among existing firms in the industry is high because of the factors present in the market. For example, price competition. Although Waterford Wedgwood plc has the ability to manufacture at lower cost in Asian countries, it still has to operate competitively as low-cost manufacturers are always present in the area that enable them to  sell their products at lower prices.

1. Potential Development Of Substitute Products (High)

• The impact of the existence or potential development of substitute products is high for Waterford Wedgwood plc as it surely affects the sales of the company considering the price and quality of substitute products. For example, marble, for its durability, and plastic and wood, for its lower price, can substitute the products manufactured by the Ceramics Group and the WC Design and Springs Group of Waterford Wedgwood plc, respectively.

1. Potential Entry Of New Competitors (High)

• The impact of the potential entry of new competitors in the industry is high for the company because considering the cost of manufacturing the products that substitute the product offerings of Waterford, Wedgwood plc such as plastics, the less stringent regulations, for example in Asian countries, entrepreneurs and investors can easily enter the industry and offer their products at lower prices that enable them to overrun the company.

1. Bargaining Power Of Suppliers (Medium)

• The bargaining power of suppliers has a medium effect to the company as Waterford Wedgwood plc has a long-term arrangement with its suppliers. The company has a system linked to its suppliers that alerts them to supply raw materials whenever the inventory reached the minimum limit; however, the supplier still has the discretion on how many materials and when it will supply such need to the company.

1. Bargaining Power Of Customers (Low)

• The bargaining power of customer is low to affect the company that much, as the Waterford Wedgwood plc manufactures quality products made by the combination of their experienced artisans and craftsmen and good types of materials that enable the company to control the price of their product offerings at a price justifiable by the quality and cost of manufacture.

1. STEPPLE FRAMEWORK

• Social Analysis

• As one generation transfers to another, people change their desire when it comes to such products offered by Waterford Wedgwood plc and their lifestyle, which now becomes cheaper than before, and these changes really affect the company as it undergone hard times in coping up with the change due to its association with the company’s tradition of manufacturing its products and maintenance of its iconic product designs that caused the company to sell products at high prices.

• Technological analysis

-  Right now, technology has been used by most of the companies for easier data management, easier transactions and even for cost cutting purposes. But because of the company’s tradition of making handmade products to maintain its iconic status in the industry, it limits its opportunity to use more advanced technology system in manufacturing its products.